Software engineering is a lucrative career field with a high demand for skilled professionals. In Texas, the demand for software engineers is particularly high, and the state boasts some of the highest paying cities for software engineers in the United States.
From the bustling metropolis of Houston to the tech hub of Austin, we will examine the job market, cost of living, and other factors that make these cities great places to work as a software engineer. Whether you’re a seasoned professional looking for a new opportunity or just starting out in your career, this article will provide you with valuable information about the top paying cities for software engineers in Texas.
Texas is now the No. 1 state for tech jobs, other than California and its Silicon Valley. Moreover, there’s more good news: Tech workers in the Lone Star State get a pay package comparable to traditional tech hubs.
These are the five highest-paid cities in Texas for software engineers, according to more than 5,000,000 verified professionals on the social network blind. Blind took into account the total compensation, the annual base, and any stock-based bonuses or compensation a company may offer.
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1. Austin, Texas
- Average total compensation: $171,981
- Median total wage: $151,843
- Average salary: $128,524
- Median base salary: $127,000
It’s not surprising that Austin is ranked No. 1. It is the home of some of the most powerful tech companies in the country.
Apple’s $1-billion new campus in northwest Austin will open in the coming year. Tesla also recently relocated its headquarters to the city. In addition, Google and Meta (Facebook owner) have recently bought hundreds of thousands of square feet in downtown Austin.
Austin’s top tech companies include Amazon, Dell, and PayPal.
2. Houston, Texas
- Average total compensation: $137,987
- Median total wage: $120,500
- Average salary: $111,625
- Median base salary: $110,000
Houston was a city that attracted many jobs long before Austin. Space City, a long-standing hub for aerospace, defense, and energy industries, has been a place to find a job in technology.
Aspen Technology, Cisco Technology, Intel, Microsoft, and SAP are some of the tech companies located in Houston.
3. Dallas, Texas
- Average total compensation: $132,788
- Median total wage: $120,000
- Average salary: $113,517
- Median base salary: $111,000
You should be familiar with Match, which owns the dating apps Hinge and Tinder, FireEye, and Palo Alto Networks.
4. Plano, Texas
- Average total compensation: $121,127
- Median total wage: $116,500
- Average salary: $107,251
- Median base salary: $105,000
North Texas is seeing strong job growth, and Plano has taken advantage of this boom.
Plano is home to many tech companies like IBM, Juniper Networks, and Red Hat. In addition, many of the most well-known companies in the world have their headquarters in Plano.
5. San Antonio, Texas
- Average total compensation: $105,254
- Median total wage: $98,433
- Average salary: $94,626
- Median base salary: $85,050
High-paying tech jobs are not uncommon in San Antonio. Alamo City is home to Rackspace and Oracle. Fiserv, iHeartMedia, and ServiceNow are other notable tech companies.
Find out more about the US Cities
Seattle is still the best, but Texas has no equal
Seattle consistently tops our list for real earnings since 2017. Amazon and Microsoft’s presence in Seattle mean higher salaries for software engineers. However, Washington does not have a state income tax so these same software engineers can keep more while renting at lower rent.
Despite this, Texas will be home to three of the top five highest real income earning cities in 2021.
Even if you aren’t employed by either company, remote developers living in Seattle enjoy the benefits of a larger paycheck. However, in comparison to 2019, Seattle’s real earnings have fallen from $50,500 down to $41,500 and there has been a decrease of more than half the jobs, from 12,400 down to 5,319.
Between 2017 and 2021, Houston, Dallas, and Phoenix have been the cities to be on the lookout for. They’ve always ranked in the top five over the past four years. San Jose was not in the top five for the first time since 2017. Austin, Phoenix and Baltimore returned to the top five. Baltimore fell to tenth.
Washington DC remained the largest city with job openings in 2021. Miami, which is new to our list, had the lowest number of job openings. However, from 2017 to 2019, the number of job openings in Washington DC dropped from 32,000 to 14,000 and 12,000 to 12,000 between 2017 and 2021.
From 2017 to 2021, San Jose has had a strong job market for software engineers. However, other cities such as Raleigh, Portland and Houston are still struggling with the lack of job openings.
However, overall, we found that 2021 real earnings were lower than 2019 and 2017. After-tax wages are also lower than 2017 numbers. The cost of living, and rent, is higher than 2017, but not 2019.
We found lower income levels for 2021 than in 2017 and 2019, which could be explained by COVID-19, which means that real income earnings are down across the board.
Methodology
Blind, a professional social network, used its platform to analyze the total compensation and base salaries of software engineers in the United States. By collecting self-reported data and verifying the accuracy of the information with professionals on the platform, Blind was able to calculate the average total payment for cities, which included the annual base salary, stock-based compensation, and cash bonus. This information can be helpful in resume and cover letter writing, as it can provide individuals with insight into the value of their skills and experience in a particular geographic area.