Key facts at a glance
Net take-home
$91,080/yr
≈ $7,590/month
vs Sydney benchmark
$5K below
Sydney Software Engineer: $125K
Total deductions
$28,920
Income tax + Medicare Levy
Short answer: yes, $120,000 is a good salary in Sydney, but it is not a top-of-market one. It sits $7,000 above the national Software Engineer median of $113,000 and $5,000 below Sydney's own $125,000 benchmark for the role. After 2026-27 income tax and the Medicare Levy, $120,000 gross works out to $91,080 net a year, or roughly $7,590 a month, before your employer's separate 12% Super Guarantee contribution is added to your super fund on top.
Whether that number feels "good" beyond the benchmark comparison depends on your circumstances: single versus dual-income household, renting versus paying down a mortgage, and how aggressively you want to save. But purely as a Sydney tech salary, $120K is a solid mid-level number with a visible gap to the city rate, which is exactly the kind of gap worth raising at your next review.
Run your exact take-home with your own salary, HECS/HELP debt, and super settings.
Open the Australia Salary CalculatorHow $120K stacks up against Sydney and national tech pay
Sydney is the highest-paying Australian city for the Software Engineer role at $125,000, an 11% premium over the $113,000 national median. That gives $120,000 two very different readings depending on which yardstick you use: nationally it is $7,000 above the median, and against every other capital (Melbourne $119,000, Brisbane $113,000, Perth $106,000, Adelaide $100,000) it is at or above the local rate. Within Sydney itself, it is $5,000 short.
On the seniority ladder, junior Software Engineers benchmark at $81,000, mid-level at $113,000, and senior at $149,000. $120,000 therefore sits just above the mid-level mark, well clear of entry-level territory but a long way from the senior rung. If you are carrying senior-level scope on $120K in Sydney, the gap to close is closer to $29,000 than $5,000.
One caveat on the wider Sydney number: the city benchmark across all tracked technology roles is $160,000, but that figure is lifted heavily by leadership and architecture titles (Chief Technology Officer benchmarks at $400,000 in Sydney) and is not a fair comparison for an individual-contributor engineering salary. It's also worth being precise about scope: this comparison confirms $120K for a Software Engineer specifically. If you're in a different tech role, check your own role's median on the salaries hub rather than assume the Software Engineer figure applies universally.
The worked tax breakdown on $120,000
Using the 2026-27 ATO resident tax brackets (tax-free to $18,200, 15% to $45,000, 30% to $135,000) plus the 2% Medicare Levy, here's exactly where the deductions come from.
| Component | Range | Taxed amount | Tax |
|---|---|---|---|
| Tax-free threshold | $0 - $18,200 | $18,200 | $0 |
| 15% bracket | $18,200 - $45,000 | $26,800 | $4,020 |
| 30% bracket | $45,000 - $120,000 | $75,000 | $22,500 |
| Medicare Levy (2%) | on $120,000 | $120,000 | $2,400 |
| Total deductions | $28,920 | ||
| Net annual take-home | $91,080 | ||
Total income tax is $26,520 ($4,020 + $22,500). Add the $2,400 Medicare Levy for $28,920 in total deductions, leaving $91,080 net, or $7,590 a month. This doesn't include the employer-paid 12% Super Guarantee, which is separate from take-home pay, or any HECS/HELP repayment if you carry a study loan.
What $91,080 net actually affords in Sydney
A monthly take-home of roughly $7,590 gives a single professional real breathing room in Sydney's market: it comfortably covers a share of an inner or middle-ring rental, everyday living costs, transport, and typically leaves solid room for regular saving or investing, without needing a second income to make ends meet. As part of a dual-income household, it's a genuinely strong contribution toward a mortgage or a faster savings runway.
It isn't a "wealthy" income in one of Australia's most expensive property markets, particularly if you're saving a house deposit solo, and Sydney's cost of living, especially housing, runs ahead of most other Australian capitals. But as a single-earner tech salary it sits well above subsistence, with meaningful discretionary capacity most months.
At $120,000 the surcharge costs more than the policy that removes it
The Medicare Levy Surcharge applies to singles above $105,000 who do not hold private hospital cover. At $120,000 you are in Tier 1, which is 1% of income, or $1,200 a year, on top of the ordinary 2% Medicare levy already in the breakdown above.
That is the unusual part: the surcharge is avoidable, and a basic hospital policy frequently costs less than the $1,200 it removes. Paying the surcharge means paying for nothing, whereas the equivalent premium at least buys cover. It is one of the few genuinely free decisions in Australian pay, and it has to be held for the full income year to remove the charge completely.
| Charge | On $120,000 | Why |
|---|---|---|
| Medicare Levy Surcharge | $1,200 | Tier 1, avoidable with hospital cover |
| HECS or HELP repayment | $7,571 | 15c per $1 above $69,528, if you carry a loan |
Together those two can take $8,771 out of the $91,080 net shown above, roughly $731 a month, and neither appears in the tax breakdown. The HECS figure is $3,000 higher than it would be on $100,000, because the repayment is 15c on every dollar above $69,528 rather than a flat rate. If you carry a study loan, Sydney at $120,000 leaves you closer to a Melbourne salary than the headline suggests.
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Frequently asked questions
Is $120,000 a good salary in Sydney in 2026?
For a tech professional, yes, with one caveat. $120,000 sits $7,000 above the national Software Engineer median of $113,000, so nationally it is an above-market number. But Sydney pays a premium: the Sydney Software Engineer benchmark is $125,000, so within Sydney itself $120,000 lands about $5,000 short of the going rate for the role. Whether it's 'good' beyond that depends on your household size, whether you're renting or paying a mortgage, and how much of your income you want to save.
What does $120,000 actually take home after tax in Sydney?
Using the 2026-27 ATO resident tax brackets: $0 tax on the first $18,200, 15% on the next $26,800 ($4,020), and 30% on the remaining $75,000 up to $120,000 ($22,500). Total income tax is $26,520. Add the 2% Medicare Levy ($2,400) and total deductions come to $28,920, leaving a net annual take-home of $91,080, or about $7,590 a month. This is a Sydney-specific rate reference; run your own numbers on the Australia Salary Calculator if you have HECS/HELP debt, salary sacrifice, or other adjustments.
Is super included in that $120,000 or on top?
In Australia, the Super Guarantee is paid by your employer on top of your salary, not carved out of it, so it isn't part of your take-home pay calculation at all. At 12%, an employer contributes an additional amount into your super fund on top of the $120,000, separate from the $91,080 net figure above. If you want the detail on how this interacts with salary packaging, see our guide on whether super sits on top of salary in Australia.
How does $120K compare to other Sydney tech salaries?
It sits below the broader Sydney tech market. The Sydney city benchmark across all tracked technology roles is $160,000, pulled up by leadership and architecture titles, and the Sydney Software Engineer figure specifically is $125,000. Against the national picture $120K looks stronger: the national Software Engineer median is $113,000, and $120K would place you above the Melbourne ($119,000), Brisbane ($113,000), Perth ($106,000), and Adelaide ($100,000) benchmarks for the role.
What seniority level typically earns $120K in Sydney?
A solidly experienced mid-level engineer, someone a few years past graduate level with proven delivery experience. On the Software Engineer ladder, junior benchmarks at $81,000 and mid-level at $113,000, so $120K sits just above the mid-level mark and well short of the $149,000 senior benchmark. If you have five or more years of experience and are on $120K in Sydney, you are being paid below the senior rate for the market.
Can you live comfortably on $120K in Sydney?
A net take-home of roughly $7,590 a month gives most single professionals or couples without dependents meaningful room: it comfortably covers a share of an inner or middle-ring Sydney rental, day-to-day living costs, and leaves scope for regular saving or investing, without needing to rely on a second income. It's not a wealthy income in one of Australia's more expensive property markets, especially if you're saving for a house deposit solo, but it is a comfortable, above-subsistence income for a single earner or as one half of a dual-income household.
Does $120K go further outside Sydney?
Generally, yes, purely because Sydney carries a higher cost of living than most other Australian capitals, particularly for housing. The take-home figure of $91,080 is identical wherever you live in Australia since income tax and Medicare Levy don't vary by state or city, so the difference in how far $120K stretches comes entirely from local living costs, not from a different net salary.
How much would I need to earn to feel a real step up from $120K?
The next real rung is senior, benchmarked at $149,000 for a Software Engineer nationally, roughly $29,000 above $120K. Closing the gap to Sydney's $125,000 role benchmark first is the quicker win and is usually achievable inside your current level. Note that anything above $135,000 crosses into the 37% marginal bracket, so the take-home gain on a raise past that point is smaller than the headline number suggests. Run different salary figures through the Australia Salary Calculator to see exactly how each extra bracket of income affects your net.
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