The US tech landscape in 2026 continues to offer lucrative opportunities for software engineers, with salaries exceeding $120,000 in several cities. These figures are based on data from the Bureau of Labor Statistics (BLS), projecting a 5% increase from 2024 levels due to inflation and demand. Salaries vary by location, influenced by cost of living and industry concentration. Below is a detailed breakdown of the top 12 cities, including average annual salary, federal tax, state tax, local tax (if applicable), and estimated take-home pay for a single filer. Tax calculations use 2025 brackets from the Internal Revenue Service (IRS), assuming a standard deduction of $14,600 and FICA taxes of 7.65% on earnings up to $168,600. Software engineers in AI-driven film production or media analytics can earn as high as $160,000, plus benefits and annual performance bonuses.
San Jose, CA
San Jose, the heart of Silicon Valley, tops the list with an average software engineer salary of $199,800. This high $ figure reflects the presence of tech giants like Apple, Google, and Nvidia. The area’s cost of living is among the highest in the U.S., but salaries comfortably offset the expenses for top-tier engineers.
- Average Salary: $199,800
- Federal Income Tax: $37,442 (24% effective rate on taxable income of $185,200)
- FICA Taxes: $13,350 (6.2% Social Security + 1.45% Medicare)
- State Tax: $17,223 (9.3% California state tax rate)
- Local Tax: $0
- Estimated Take-Home Pay: $131,785
Additional Insight: Software engineers here often receive stock options and bonuses averaging $15,000–$30,000 annually, particularly at FAANG companies.
Boulder, CO
Boulder offers a blend of tech innovation and outdoor lifestyle, with average salaries reaching $182,650. The region’s startups and clean energy tech firms contribute to competitive compensation.
- Average Salary: $182,650
- Federal Income Tax: $34,346
- FICA Taxes: $13,350
- State Tax: $7,397 (4.4% Colorado flat rate)
- Local Tax: $0
- Estimated Take-Home Pay: $127,557
Additional Insight: Boulder’s cost of living is moderate compared to San Francisco, giving engineers higher real income per dollar earned. Engineers working remotely for coastal firms can make up to $190,000.
San Francisco, CA
San Francisco’s vibrant tech scene commands average salaries of $181,220, though high living costs impact net $ earnings. The city remains home to top-paying employers such as Salesforce and Uber.
- Average Salary: $181,220
- Federal Income Tax: $34,062
- FICA Taxes: $13,350
- State Tax: $15,489
- Local Tax: $0
- Estimated Take-Home Pay: $118,319
Additional Insight: Despite heavy taxes, engineers here enjoy average total compensation packages above $210,000 including bonuses, stocks, and equity grants.
Seattle, WA
Seattle, home to Amazon and Microsoft, provides average salaries of $164,130 with the advantage of no state income tax.
- Average Salary: $164,130
- Federal Income Tax: $30,658
- FICA Taxes: $13,350
- State Tax: $0
- Local Tax: $0
- Estimated Take-Home Pay: $120,122
Additional Insight: Engineers in Seattle keep roughly 73% of their gross pay due to tax benefits. Housing incentives from employers can add another $10,000–$20,000 in benefits per year.
Santa Maria, CA
Santa Maria offers competitive $120,000+ salaries at $156,470, benefiting from California’s growing tech ecosystem expanding beyond Silicon Valley.
- Average Salary: $156,470
- Federal Income Tax: $29,174
- FICA Taxes: $13,350
- State Tax: $13,192
- Local Tax: $0
- Estimated Take-Home Pay: $100,754
Additional Insight: Many engineers here work in renewable energy and automation systems, earning remote job offers from top-tier U.S. employers paying up to $170,000.
New York, NY
New York’s fintech and media industries drive average salaries of $159,531, making it one of the top-paying metros for software professionals in the East Coast.
- Average Salary: $159,531
- Federal Income Tax: $29,746
- FICA Taxes: $13,350
- State Tax: $9,572
- Local Tax: $5,605 (NYC local tax 3.876%)
- Estimated Take-Home Pay: $101,258
Additional Insight: Software engineers in Manhattan often receive sign-on bonuses exceeding $20,000, with major banks like JPMorgan and Goldman Sachs paying as high as $180,000 annually.
Boston, MA
Boston’s biotech and software hubs provide average salaries of $146,580, supported by world-class institutions and health-tech firms.
- Average Salary: $146,580
- Federal Income Tax: $27,282
- FICA Taxes: $13,350
- State Tax: $7,329
- Local Tax: $0
- Estimated Take-Home Pay: $98,619
Additional Insight: Engineers working in health-tech startups often earn additional equity options worth $10,000–$40,000 annually.
Washington, DC
The DC metro area, a nexus of federal government and private IT contractors, offers average salaries of $150,000.
- Average Salary: $150,000
- Federal Income Tax: $28,002
- FICA Taxes: $13,350
- State Tax: $11,250
- Local Tax: $0
- Estimated Take-Home Pay: $97,398
Additional Insight: Engineers in cybersecurity and data systems roles at federal agencies earn up to $175,000, supported by the U.S. Department of Labor‘s demand projections for STEM fields.
Los Angeles, CA
Los Angeles’ entertainment-tech industry provides average salaries of $134,242, led by firms in gaming and streaming services.
- Average Salary: $134,242
- Federal Income Tax: $24,766
- FICA Taxes: $13,350
- State Tax: $11,113
- Local Tax: $0
- Estimated Take-Home Pay: $85,013
Additional Insight: Software engineers in AI-driven film production or media analytics can earn as high as $160,000, plus benefits and annual performance bonuses.
Austin, TX
Austin’s booming tech hub continues to attract employers with no state income tax, offering average salaries of $140,000.
- Average Salary: $140,000
- Federal Income Tax: $25,962
- FICA Taxes: $13,350
- State Tax: $0
- Local Tax: $0
- Estimated Take-Home Pay: $100,688
Additional Insight: The city’s growing startup ecosystem provides remote roles averaging $150,000–$165,000 for senior engineers. Many companies also offer relocation bonuses of $5,000–$10,000. Software engineers in AI-driven film production or media analytics can earn as high as $160,000, plus benefits and annual performance bonuses.
Chicago, IL
Chicago’s blend of finance, logistics, and software innovation yields average salaries of $130,000.
- Average Salary: $130,000
- Federal Income Tax: $23,902
- FICA Taxes: $13,350
- State Tax: $6,435
- Local Tax: $0
- Estimated Take-Home Pay: $86,313
Additional Insight: Chicago offers a lower cost of living compared to coastal cities, increasing disposable income. Engineers in fintech firms can earn over $140,000 plus annual bonuses.
Chicago offers a lower cost of living compared to coastal cities, increasing disposable income. Engineers in fintech firms can earn over $140,000 plus annual bonuses.
Denver, CO
Denver’s emerging tech hub attracts startups and enterprise firms offering salaries around $135,000.
- Average Salary: $135,000
- Federal Income Tax: $25,102
- FICA Taxes: $13,350
- State Tax: $5,940
- Local Tax: $0
- Estimated Take-Home Pay: $90,608
Additional Insight: With a moderate cost of living and steady tech growth, Denver’s real take-home income is comparable to higher-paying metros like San Francisco.
Statistics on Software Engineer Salaries
The national average salary for software engineers in 2026 is projected at $138,110, according to the Bureau of Labor Statistics (BLS). Demand for software engineers is expected to grow 26% by 2033, outpacing all other occupations.
In top-paying cities, engineers earn over $120,000 annually, while senior engineers or AI specialists surpass $200,000.
- FICA Taxes: $13,350 on earnings up to $168,600
- Top State Tax Impact: Up to 9.3% in California
- Best Take-Home Pay: Texas and Washington, due to zero state income tax
Tax burdens remain a defining factor — states without income taxes allow engineers to save an additional $10,000–$17,000 per year compared to California.
user
Musty