Software Engineer Salary: Los Angeles vs Austin
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
Even though a Software Engineer grosses $17,000 more in Los Angeles, Austin wins on what actually matters: after tax and cost of living, its real salary is $35,769 higher in equivalent buying power ($101,688 vs $65,919).
Real salary $65,919 equivalent
Entry (25th)$128,000
Median (50th)$176,000
Senior (75th)$223,000
Top (90th)$284,000
35% premium vs national median. Software Engineers in Los Angeles earn approximately 35% higher than the US national median for this role — a $46,000 premium on annual base salary. This reflects Los Angeles's position as a higher-cost labor market where employers must match local wage norms.
Cost-of-living adjusted picture. Adjusted for Los Angeles's cost-of-living index (163), the median Software Engineer salary buys the equivalent of $107,975 in a US-average-cost city. That's $22,025 less purchasing power than the national median — the higher nominal salary doesn't fully offset local costs.
HIGHER REAL PAY
Austin, TXNo state tax
Real salary $101,688 equivalent
Entry (25th)$116,000
Median (50th)$159,000
Senior (75th)$201,000
Top (90th)$256,000
22% premium vs national median. Software Engineers in Austin earn approximately 22% higher than the US national median for this role — a $29,000 premium on annual base salary. This reflects Austin's position as a higher-cost labor market where employers must match local wage norms.
Cost-of-living adjusted picture. Adjusted for Austin's cost-of-living index (110), the median Software Engineer salary buys the equivalent of $144,545 in a US-average-cost city. That's $14,545 more purchasing power than the national median — a meaningful real-wage advantage.
Head-to-head breakdown
| Metric | Los Angeles | Austin |
|---|---|---|
| Median gross salary | $176,000 ✓ | $159,000 |
| State income tax | 9.3% | None ✓ |
| Est. take-home pay | $107,448 | $111,857 ✓ |
| Cost-of-living index | 163 | 110 ✓ |
| Real salary (COL-adjusted take-home) | $65,919 | $101,688 ✓ |
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.