Income Tax in Victoria
Victoria's economy is diverse, spanning finance, manufacturing, education, and healthcare. Melbourne's growing population has created strong demand in construction and professional services. Victorian workers face similar tax obligations to NSW but often benefit from a lower cost of living.
Tax Rates Apply Nationally
Australian income tax rates are set federally and apply the same in every state. Whether you earn $85,000 in Melbourne or anywhere else in Australia, your income tax, Medicare levy, and HELP repayments are identical. There is no state income tax in Australia — unlike the US, where state taxes vary significantly.
For FY 2025–26, the brackets are: $0–$18,200 at 0% (tax-free threshold), $18,201–$45,000 at 16%, $45,001–$135,000 at 30%, $135,001–$190,000 at 37%, and $190,001+ at 45%. The 2% Medicare levy applies on top.
VIC-Specific Considerations
Melbourne's median salary is slightly lower than Sydney's, which means many Victorian workers sit in the 30% bracket rather than pushing into 37%. Salary sacrifice into super is particularly effective in this bracket — every dollar sacrificed saves you 15 cents compared to the 30% marginal rate.
Median Salary in Victoria
The median full-time salary in Victoria is approximately $88,000. At this income, you'd pay roughly 22-24% in combined tax and Medicare, taking home around $65,000–$75,000 per year after deductions.
Use our Income Tax Calculator for a detailed bracket-by-bracket breakdown, or the Take-Home Pay Calculator for a quick answer. For your complete financial picture, try the Financial Snapshot.