Design, develop, and maintain software systems. One of the highest-demand roles in the US labor market. Median salary in Sioux Falls: $114K/year. Data from BLS, O*NET, and H-1B disclosures.
Figures represent annual base salary in Sioux Falls, South Dakota. 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.
Software Engineers in Sioux Falls earn approximately 12% lower than the US national median for this role — a $16,000 discount on annual base salary. Sioux Falls's lower wage level partially reflects the area's cost-of-living index of 88 (US avg = 100).
South Dakota has no state income tax, which is worth roughly $10,602 per year at this salary level compared to a California Software Engineer on the same gross pay. A Sioux Falls Software Engineer would need to earn $125,689 in California to net the same take-home.
This role is 72% remote-eligible nationally according to job-posting analysis, which significantly expands the job market for Sioux Falls-based Software Engineers. Many Sioux Falls professionals in this role are paid on the locality scale of their employer's HQ rather than Sioux Falls's local rate — verify which scale your offer references before negotiating.
Based on BLS 2022–2032 Employment Projections and WEF Future of Jobs Report 2026. At current growth rates, median salary reaches $138K by 2030.
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The median Software Engineer salary in Sioux Falls, SD is $114,000 per year as of Q1 2026. This figure represents the midpoint of all reported compensation for this role in the Sioux Falls–SD 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 Software Engineers in Sioux Falls with 0–2 years of experience typically earn between $84,000 and $114,000 annually. Mid-career professionals with 3–7 years command $114,000 to $145,000, while senior-level practitioners with 8+ years of experience regularly earn $145,000 to $185,000 or more.
Sioux Falls has a cost of living index of 88 compared to the US national average of 100. This means your salary goes approximately 12% further in Sioux Falls than the national average. Crucially, South Dakota has no state income tax — giving Sioux Falls-based Software Engineers an immediate 3–5% take-home pay advantage over workers in states like California (9.3%) or New York (6.85%).
Bachelor's in CS or related. This role is 72% remote-eligible nationally, which can significantly expand the job market for Sioux Falls-based professionals.