How Much Income Do You Need to Buy a House in Australia?
Enter a home price to see the income, upfront cash and monthly repayment. Compare one or two incomes and different deposits.
The short answer
- Buying a $700,000 home with a 20% deposit on one income needs about $136,116 before tax. Two people contributing equal take-home pay need about $121,384 combined.
- The income is only half the story. You also need the deposit, transfer duty and buying costs. Buying Sydney's median house needs about $366,937 upfront.
- Your bank may reach a different figure after looking at your expenses, debts, dependants and income. Use the figures below as a starting point.
How much income do you need to buy a house in Australia?
Buying a $700,000 home with a 20% deposit on one income needs about $136,116 a year before tax. Two people contributing equal take-home pay need about $121,384 combined. Both figures use a $560,000 loan with repayments of about $3,412 a month at 6.15%.
The calculator starts with the mortgage repayment at 40% of your take-home pay. Lower the percentage to leave more room for other costs. Raise it to test a tighter budget.
There isn't one salary that guarantees you can buy a home. The price, deposit, interest rate and number of earners all matter. A bank will also check your living costs and debts before deciding how much it's prepared to lend.
Leave room for the costs of owning the home
The repayment figures don't include council rates, insurance, maintenance, utilities or strata fees. Make sure those costs fit in the rest of your household budget.
Calculate the income needed for your home price
Enter the property price and state. Add the deposit you expect to have. Use a realistic mortgage rate and choose whether the income will come from one person or two. Switch on HELP debt to include compulsory repayments.
Start at 40% of take-home pay. Compare it with 30% to leave more room each month.
Income needed to buy a home calculator
One transparent affordability benchmark across repayments, tax, HELP, duty, deposit and LMI.
Purchase price or lender valuation, whichever is useful for your plan.
May 2026 RBA new owner-occupier P&I average: 6.15%.
Your planning limit—not a bank rule.
Applies the engine's current state duty concession for an eligible established-home buyer.
$143,194
$71,597 each
$195,145
$640,000
$3,899/mo
$5,219/mo
Upfront cost breakdown
- Deposit
- $160,000
- Transfer duty
- $30,187
- Other buying costs
- $4,958
A lender may use a different figure
It will also look at your living costs, other debts, dependants and income.
Income needed to buy the median house in every state
The table uses the ABS median established-house price for each capital city in March 2026. It shows the income needed with a 20% deposit and the estimated cash needed for the deposit, transfer duty and common buying costs.
| Capital city | Median house | Upfront cash | Monthly repayment | One income | Two incomes |
|---|---|---|---|---|---|
| Sydney, NSW | $1,485,000 | $366,937 | $7,238 | $344,396 | $292,606 |
| Melbourne, VIC | $850,000 | $219,473 | $4,143 | $172,069 | $153,942 |
| Brisbane, QLD | $1,150,000 | $275,853 | $5,605 | $251,975 | $218,448 |
| Adelaide, SA | $980,000 | $249,982 | $4,776 | $205,078 | $181,900 |
| Perth, WA | $1,000,000 | $247,804 | $4,874 | $210,595 | $186,200 |
| Hobart, TAS | $740,000 | $180,281 | $3,607 | $145,702 | $130,176 |
| Darwin, NT | $750,000 | $190,737 | $3,655 | $148,101 | $132,380 |
| Canberra, ACT | $1,071,300 | $257,946 | $5,221 | $230,265 | $201,530 |
The Sydney number may have made your stomach drop. That's understandable. A median is only a middle point across recent sales. An apartment, townhouse, outer suburb or regional area may give you a very different starting price.
The assumptions behind the tables
Both tables use a 20% deposit and a 30-year owner-occupier loan at 6.15%. Repayments are capped at 40% of take-home pay. The income figures use 2026–27 resident tax and Medicare settings. They assume no HELP debt. The two-income figures split the required take-home pay equally. Upfront cash includes estimated duty, registration, conveyancing and inspections. It doesn't include moving costs or an emergency fund.
How much salary do you need for a $500k, $700k or $1m home?
This table is the quicker reference when you already have a price in mind. A 20% deposit gives you the same loan amount in every state. Transfer duty changes the cash you need upfront. It doesn't change the income figures shown here.
| Home price | 20% deposit | Loan | Monthly repayment | One income | Two incomes |
|---|---|---|---|---|---|
| $500,000 | $100,000 | $400,000 | $2,437 | $93,098 | $79,560 |
| $700,000 | $140,000 | $560,000 | $3,412 | $136,116 | $121,384 |
| $1,000,000 | $200,000 | $800,000 | $4,874 | $210,595 | $186,200 |
| $1,500,000 | $300,000 | $1,200,000 | $7,311 | $348,532 | $296,202 |
| $2,000,000 | $400,000 | $1,600,000 | $9,748 | $486,469 | $421,190 |
The calculator also shows the repayment at 9.15%. This is the 6.15% loan rate plus the 3 percentage point buffer regulated banks must use when assessing a new mortgage.
Mortgage Repayment CalculatorTest extra repayments, an offset account and future rate changes for the loan itself.Open calculatorwww.mortgagerepayments.com.au/?utm_source=moneytoolkit&utm_medium=internal-linkYour deposit is not the full amount you need upfront
A 20% deposit on an $800,000 home is $160,000. You may also need to pay transfer duty, registration fees, conveyancing and inspection costs. First-home buyer concessions can reduce some of these costs. The rules depend on your state, the property and your circumstances.
A smaller deposit means a bigger loan
Many lenders charge Lenders Mortgage Insurance when your deposit is below 20%. You'll usually see it called LMI. It protects the lender if you can't repay the loan. It doesn't protect you. The cost varies between lenders. Treat the calculator's LMI figure as an estimate until you have a lender quote.
- 20% deposit: more cash to save. You get a smaller loan and no LMI in this calculator.
- 10% deposit: less cash for the deposit. You'll usually have a larger loan plus LMI.
- 5% deposit: the smallest deposit and the largest loan. An eligible government guarantee may remove LMI. It won't reduce your repayments.
Check duty concessions and Australian Government 5% Deposit Scheme eligibility. Price caps and other rules still apply.
Stamp Duty CalculatorCheck transfer duty and first-home buyer concessions for your state or territory.Open calculatorwww.stampdutycalcs.com.au/?utm_source=moneytoolkit&utm_medium=internal-linkWhat can change the income you need?
One income or two
Two people earning $90,000 each usually take home more than one person earning$180,000. Australia taxes each person separately. Two earners each get their own tax-free threshold and tax brackets. That's why the two-income figures in the tables are lower than the one-income figures.
HELP debt
Compulsory HELP repayments reduce the pay available for your mortgage and other bills. Repayments begin once repayment income is above $69,528 in 2026–27. Compare the calculator with HELP switched on and off if your debt is nearly paid off. Ask the lender how it will treat the remaining balance.
Your rate and household budget
A higher rate raises the monthly repayment and the income needed to support it. Your chosen budget matters too. Keeping the mortgage to 25% of take-home pay needs more income than allowing 40%. It also leaves more room for rates, repairs and the rest of life.
Income Tax CalculatorCompare take-home pay from one income or two with HELP repayments included.Open calculatorwww.income-tax-calculator.com.au/?utm_source=moneytoolkit&utm_medium=internal-linkWhat to check before you set your buying budget
A bank looks beyond the repayment shown here. Banks may treat overtime, bonuses, casual work or self-employed income differently from a base salary. They also look at your living expenses, dependants, car loans, personal loans and credit-card limits. This includes limits you aren't currently using.
- Enter a property price you're considering and a realistic interest rate.
- Compare 5%, 10% and 20% deposits. Check both the upfront cash and the monthly repayment.
- Add rates, insurance, maintenance and strata costs to your household budget before choosing the share of take-home pay.
- Check transfer duty, first-home concessions and any guarantee scheme with the relevant government office or lender.
- Ask a lender or broker to assess your price range before making an unconditional offer.
Work out a price range you can afford upfront and repay each month. Check the repayment again at a higher interest rate.
Common questions
Sources and assumptions
Every figure on this page is computed for the 2026-27 financial year using the rates and thresholds published by the sources below, and was last regenerated on 25 July 2026. Rates change each year; check the source before relying on a number.
- ABS — Total Value of Dwellings, March quarter 2026 (Table 2 median transfer data)
- ABS — Total Value of Dwellings methodology, medians, scope and revision cautions
- RBA — Lenders' Interest Rates, May 2026 new owner-occupier principal-and-interest rate
- APRA — May 2026 macroprudential settings: 3-point serviceability buffer and high-DTI limits
- ATO — Individual income tax rates for Australian residents
- Australian Government Budget 2026–27 — $1,000 instant work-related deduction
- ATO — Study and training loan repayment thresholds and rates
- Australian Government — 5% Deposit Scheme eligibility and application process
- Helia — LMI fee estimator, payment options and limitations
Stamp duty sources by state
- Revenue NSW — Transfer duty
- State Revenue Office Victoria — Land transfer duty
- Queensland Revenue Office — Transfer duty
- WA Government — Transfer duty
- RevenueSA — Stamp duty on land
- State Revenue Office Tasmania — Property transfer duties
- Northern Territory Treasury — Stamp duty
- ACT Revenue Office — Conveyance duty