Software Engineer Salary: Houston vs Dallas
Same job, two cities — but the paycheck that looks bigger isn’t always the one that goes further. We compare gross pay, take-home after tax, and cost-of-living-adjusted real salary.
THE VERDICT
It’s close. Dallas edges out Houston on real salary by just $1,079 in equivalent buying power — effectively a wash once tax and cost of living are factored in.
Houston, TXNo state tax
Real salary $105,912 equivalent
Entry (25th)$100,000
Median (50th)$137,000
Senior (75th)$173,000
Top (90th)$221,000
5% premium vs national median. Software Engineers in Houston earn approximately 5% higher than the US national median for this role — a $7,000 premium on annual base salary. This reflects Houston's position as a higher-cost labor market where employers must match local wage norms.
Cost-of-living adjusted picture. Adjusted for Houston's cost-of-living index (91), the median Software Engineer salary buys the equivalent of $150,549 in a US-average-cost city. That's $20,549 more purchasing power than the national median — a meaningful real-wage advantage.
HIGHER REAL PAY
Dallas, TXNo state tax
Real salary $106,991 equivalent
Entry (25th)$106,000
Median (50th)$146,000
Senior (75th)$185,000
Top (90th)$235,000
12% premium vs national median. Software Engineers in Dallas earn approximately 12% higher than the US national median for this role — a $16,000 premium on annual base salary. This reflects Dallas's position as a higher-cost labor market where employers must match local wage norms.
Cost-of-living adjusted picture. Adjusted for Dallas's cost-of-living index (96), the median Software Engineer salary buys the equivalent of $152,083 in a US-average-cost city. That's $22,083 more purchasing power than the national median — a meaningful real-wage advantage.
Head-to-head breakdown
| Metric | Houston | Dallas |
|---|---|---|
| Median gross salary | $137,000 | $146,000 ✓ |
| State income tax | None ✓ | None |
| Est. take-home pay | $96,380 | $102,711 ✓ |
| Cost-of-living index | 91 ✓ | 96 |
| Real salary (COL-adjusted take-home) | $105,912 | $106,991 ✓ |
Real salary = take-home pay (after federal tax, state tax, and FICA) adjusted for each city’s cost-of-living index, shown in US-average-cost dollars. Take-home uses a 22% federal + 7.65% FICA estimate plus state tax; your actual rate depends on filing status and deductions. Methodology · Updated Q3 2026.