Develop and deploy artificial intelligence systems and applications. Median salary in Memphis: $154K/year. Data from BLS, O*NET, and H-1B disclosures.
Figures represent annual base salary in Memphis, Tennessee. Reviewed by SalaryOptics Editorial · How we calculate this →
Analysis derived from the salary, COL, tax, and labor-market figures above — specific to this role and city.
AI Engineers in Memphis earn approximately 12% lower than the US national median for this role — a $21,000 discount on annual base salary. Memphis's lower wage level partially reflects the area's cost-of-living index of 82 (US avg = 100).
Adjusted for Memphis's cost-of-living index (82), the median AI Engineer salary buys the equivalent of $187,805 in a US-average-cost city. That's $12,805 more purchasing power than the national median — a meaningful real-wage advantage.
Tennessee has no state income tax, which is worth roughly $14,322 per year at this salary level compared to a California AI Engineer on the same gross pay. A Memphis AI Engineer would need to earn $169,791 in California to net the same take-home.
Based on BLS 2022–2032 Employment Projections and WEF Future of Jobs Report 2026. At current growth rates, median salary reaches $154K by 2030.
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The median AI Engineer salary in Memphis, TN is $154,000 per year as of Q1 2026. This figure represents the midpoint of all reported compensation for this role in the Memphis–TN metropolitan area, based on data from the Bureau of Labor Statistics Occupational Employment Statistics, H-1B visa disclosures from the Department of Labor, and O*NET occupational data.
Entry-level AI Engineers in Memphis with 0–2 years of experience typically earn between $114,000 and $154,000 annually. Mid-career professionals with 3–7 years command $154,000 to $198,000, while senior-level practitioners with 8+ years of experience regularly earn $198,000 to $255,000 or more.
Memphis has a cost of living index of 82 compared to the US national average of 100. This means your salary goes approximately 18% further in Memphis than the national average. Crucially, Tennessee has no state income tax — giving Memphis-based AI Engineers an immediate 3–5% take-home pay advantage over workers in states like California (9.3%) or New York (6.85%).
Master's or PhD in CS or AI. This role is 72% remote-eligible nationally, which can significantly expand the job market for Memphis-based professionals.