Top-paying states for software engineers

Software engineers are in demand — the Bureau of Labor Statistics (BLS) projects these jobs to increase by 17% between 2023 and 2033, much faster than the average projected job growth for all occupations. Still, salaries for software engineers can vary widely by state. For example, California paid software engineers a median salary of $170,910 in 2024, while Mississippi's median is $86,460, just over half of California's.

It can help to know what to expect from a future software engineer career in your state by focusing on state-specific salaries. Explore the best states for software engineers based on median annual salaries and learn what factors into salary differences between each state, such as cost of living and demand.

The highest-paying states for software engineers

California, Washington, New York, Massachusetts, and Maryland are the highest-paying states for software engineers, while Mississippi, South Dakota, Arkansas, North Dakota, and Montana pay the least.

The map below illustrates salary differences by state, with darker-colored states paying more. We also adjusted the top five states' salaries using regional price parities (RPP) from the Bureau of Economic Analysis. RPP accounts for pricing differences in housing, food, and other necessities across states to give a clearer picture of how much a software engineer's salary is truly worth in each state.

For comparison, the national median annual salary for software engineers is $131,450, according to 2024 data from the BLS.

1. California

In terms of salary potential, California is one of the best states for software engineers, with software among its largest tech subsectors. The Golden State has the highest RPP, but it also pays software engineers the highest median annual salary in the country, moving its cost-of-living-adjusted salary to second, just behind Washington.

California's concentrated tech talent and employment opportunities fuel intense competition within the industry, which can influence salaries. The state employs the largest number of software engineers in the country, almost doubling Texas, which has the next highest employment for these professionals. The San Jose-Sunnyvale-Santa Clara and San Francisco-Oakland-Fremont metro areas also rank second and third in employment, respectively, just behind the New York-Newark-Jersey City, NY-NJ metro area.

• Median annual salary: $170,910
• Salary adjusted for cost of living: $151,811 (2nd)

2. Washington

Although Washington ranks second in its median annual salary for software engineers, it places first in salary adjusted for cost of living. The Seattle metro is home to many software industry giants' headquarters, including Amazon and Microsoft. According to CompTIA, as of 2025, around 30% of the city's employed residents work in tech.

Due to its status as a tech industry destination, Washington has promising outlooks for the software publishing industry. The Washington Employment Security Department projects jobs in the software publishing industry to grow by 1.4% each year between 2028 and 2033, netting approximately 7,700 new jobs. This demand will likely keep salaries for professionals in the software industry high in Washington.

• Median annual salary: $166,910
• Salary adjusted for cost of living: $153,746 (1st)

3. New York

New York has among the highest costs of living in the country. New York City also tops Zumper's National Rent Index with a median rent price of $4,400 per month for a one-bedroom apartment. Though it can be pricey to live in New York or NYC, the state has a strong demand for software engineers and offers attractive salaries to match.

NYC is New York's technology hub — as of 2025, the city is home to over 2,000 artificial intelligence startups especially for artificial intelligence startups, according to Tech:NYC. Per Empire State Development, the software and digital media industry provides almost half of all the technology jobs within the Empire State.

• Median annual salary: $161,260
• Salary adjusted for cost of living: $149,834 (3rd)

4. Massachusetts

According to Mass Econ, more than 20% of the Massachusetts economy comes from the information technology sector, which employs three times the national average of software professionals. More than 2,000 software publishing companies make their homes in Massachusetts, including MathWorks and UKG. Home to premier universities known for their STEM programs, such as MIT, the state is also cultivating the next generation of tech and AI leaders.

However, the high cost of living in Massachusetts has caused a surge in people leaving the state, at a rate 10 times greater in 2023 than in 2010. To preserve the economy-boosting tech sector and offset living costs, Massachusetts' tech employers rely on strong compensation packages for worthy candidates.

• Median annual salary: $150,520
• Salary adjusted for cost of living: $139,064 (5th)

5. Maryland

Although Maryland ranks fifth in median annual pay for software engineers, it falls to 14th after adjusting for cost of living, largely due to tighter purchasing power in the D.C.-Baltimore metro area. The upside is that opportunities for software engineers abound in the same area, especially within the government, as agencies like the NSA, U.S. Cyber Command, and defense contractors drive strong demand for tech talent. Software engineers with a strong background in cybersecurity and data science can secure high-paying roles and long-term career stability.

Washington, D.C., also encourages industry growth through tech employer incentives, such as tax rebates, credits, and exemptions. These policies help make the region one of the most dynamic markets for software engineers and other tech professionals.

• Median annual salary: $137,890
• Salary adjusted for cost of living: $132,631 (14th)

Software engineering salaries by state

Use the table below to compare the median salaries for software engineers by state and salaries adjusted for each state's cost of living.

Source: BLS 2024, BEA 2023

Note: Cost-of-living adjustments compare purchasing power across states using the BEA’s Regional Price Parity index, which accounts for price differences in goods, services, and housing relative to the national average. Colorado’s wage data was excluded due to non-reporting by the BLS.

Methodology and limitations

This analysis utilizes the U.S. Bureau of Labor Statistics' (BLS) Occupational Employment and Wage Statistics (OES) median annual salary data for Data Scientists (SOC 15-2051) as of May 2024. Salaries were adjusted for cost-of-living differences across states using the Bureau of Economic Analysis (BEA) Regional Price Parities (RPPs) for 2023, following the formula: Adjusted Salary = (Nominal Salary / RPP) × 100. The RPP index accounts for variations in the prices of goods, services, and housing relative to the national average (100). Colorado's wage data was excluded due to non-reporting by the BLS.