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United States vs Australia: salary, tax & cost of living

Average wage, take-home after tax and cost of living, side by side — on real OECD wage data, PPP-adjusted. The headline salary and the net paycheck don't always point the same way.

Head to head

United States vs Australia

MetricUnited StatesAustraliaWinner
Average wage (PPP)$82,933$70,736United States
Payroll deduction25%23%Australia
Net take-home (avg wage)$62,490$54,467United States
Cost index (NY=100)10080Australia

Average wage: OECD (PPP). Tax is an effective single-filer rate at the average wage; cost index is each country's anchor city (New York / Sydney).

Data signals

What actually separates them

  • Who keeps more

    On the average wage, United States leaves the bigger net paycheck — about $8,023 more per year ($62,490 in United States vs $54,467 in Australia, PPP).

  • Payroll deduction

    Australia takes less off the top: ~23% vs ~25% combined income tax + social security.

  • Cost of living

    Australia is the cheaper base: cost index 80 vs 100 (New York / Sydney, New York = 100). Higher net pay doesn't help if rent eats it.

Banking & transfers for either move

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FAQ

Is the average salary higher in United States or Australia?
United States has the higher OECD average wage: $82,933 in United States vs $70,736 in Australia (PPP-adjusted). But after tax, United States keeps more net.
Where do you take home more after tax?
United States — about $8,023 more net per year on the average wage, once income tax and social security are applied.
Which is cheaper to live in?
Australia, by cost index (New York 100 vs Sydney 80, NY = 100). Weigh net pay against cost together, not separately.

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