Average Software Engineer Salary in 2026: City-by-City Breakdown
Software engineer salaries vary dramatically by city. A $130K offer in Houston has far more purchasing power than the same offer in San Francisco. Here is what the data shows.
Software Engineer Salaries in 2026
The national median salary for a software engineer in 2026 is $130,000 per year, according to BLS Occupational Employment Statistics. But that national figure masks enormous geographic variation that can mean the difference of $50,000 or more in real purchasing power.
Top Cities for Software Engineers
San Francisco, CA leads with a median of $178,000 — but with a cost of living index of 224 and a 9.3% state income tax, that salary buys less than $130K in Houston, Texas.
Seattle, WA comes in second at $168,000. Washington has no state income tax, making Seattle one of the best cities for software engineers on a take-home basis.
Austin, TX has emerged as one of the fastest-growing tech hubs in the US. Median software engineer salaries sit at $143,000 with no state income tax and a cost of living index of 110 — significantly below San Francisco.
Houston, TX offers a median of $127,000 with no state income tax and a low cost of living index of 91. For engineers who value purchasing power over raw salary, Houston ranks among the top choices nationally.
Remote Work Changes the Equation
With 72% of software engineering roles eligible for remote work, location is increasingly a choice rather than a constraint. Engineers in major tech companies who relocate from San Francisco to Houston while keeping their salary see an effective pay increase of 35–40% in purchasing power.
Entry Level vs Senior
Entry-level software engineers (0–3 years) earn a national median of $95,000. Mid-level engineers (4–7 years) earn $130,000. Senior engineers (8+ years) earn $165,000–$210,000, with principal and staff engineer roles at top companies exceeding $300,000 in total compensation.
H-1B Data: What Employers Actually Pay
H-1B employer filings — which represent what companies actually pay, not self-reported estimates — show that major tech employers file for software engineers at $150,000–$200,000 at the GS-equivalent senior level. This data is available publicly through the Department of Labor and represents some of the most reliable compensation benchmarks available.
Outlook
Software engineering is growing at 4.2% annually, faster than the national average. Demand is particularly strong for engineers with AI/ML experience, where salaries are running 20–30% above standard software engineering rates.