How Much Do Software Engineers Make? Software Engineer Salary Data for 2026

According to the 2024 BLS Occupational Employment and Wage Statistics survey for software developers (SOC 15-1252), the national median annual wage was $130,160, or approximately $62.58 per hour.

BLS wage percentiles for software developers:

• 10th percentile: ~$73,000/year
• 25th percentile: ~$97,000/year
• 50th percentile (median): $130,160/year
• 75th percentile: ~$168,000/year
• 90th percentile: ~$210,000+/year

These figures reflect base wages reported to the BLS and do not capture equity compensation — restricted stock units (RSUs), stock options — or annual cash bonuses, which are common and often substantial at major technology companies.

Total compensation at large-cap technology employers frequently exceeds the BLS reported wage figures by a significant margin, particularly at the senior and staff engineer levels.

To see exactly how wages like $62 an hour translate to annual, monthly, and after-tax take-home, our guide on $62 an hour is how much a year breaks down every pay period. For other rates in the range above, browse our hourly wage conversion guide index.

Software engineer compensation increases substantially with years of experience, scope of technical responsibility, and seniority level within an employer's engineering ladder. The following reflects typical base salary ranges nationally, excluding equity and bonuses:

At major technology companies — often referred to as FAANG or large-cap tech, including companies such as Google, Meta, Amazon, Apple, and Microsoft — base salaries are typically above market rate and supplemented by significant equity grants.

For comparison, the engineer salary across all engineering disciplines provides useful context for how software engineers compare to hardware and mechanical peers.

Total compensation packages at these employers commonly reach $200,000–$500,000 or more for senior and staff-level engineers, though these represent the upper end of the market rather than the national norm.

Geographic location is one of the most powerful drivers of software engineer pay. Markets with concentrated technology industry employment pay substantially more than the national median:

• San Francisco Bay Area (CA): The highest-paying market in the U.S. for software engineers, with median base salaries commonly 50–80% above the national BLS median for experienced engineers. High cost of living is a significant offset, though compensation at major employers often outpaces local cost-of-living increases.
• Seattle, WA: Amazon and Microsoft headquarters drive strong demand and above-median compensation. One of the top markets for software engineer base pay nationally. The cost of living in Washington State is substantially lower than the Bay Area, making Seattle particularly attractive on a real purchasing-power basis.
• New York, NY: Financial technology, media technology, and a growing base of tech company offices drive above-median wages. Compensation approaches Bay Area levels for engineers at major technology and finance employers.
• Austin, TX and Denver, CO: Growing technology hubs attracting companies and talent from higher-cost markets; wages above the national median but generally below Bay Area and New York levels.

Remote work has meaningfully changed the geography of software engineer compensation.

For engineers evaluating relocation, the cost of living in California and the cost of living in Texas represent the starkest contrast in high-tech market cost profiles.

Engineers working remotely for major technology employers headquartered in high-paying markets may earn salaries set for those markets regardless of where they live — though some employers have adopted location-based pay adjustments for remote workers.

Several factors beyond years of experience significantly influence what a software engineer may earn:

• Employer type and company size: Major technology companies, financial technology firms, and high-growth startups typically pay the highest base salaries plus equity. Mid-size technology companies and non-technology companies employing software engineers (healthcare, retail, manufacturing) pay closer to the national BLS median. Government and nonprofit employers typically pay below market for software engineering talent.
• Equity compensation: Restricted stock units (RSUs) and stock options are a significant component of total compensation at technology companies. At large-cap tech employers, annual equity grants for mid-level and senior engineers may be valued at $50,000–$200,000 or more per year — substantially exceeding base salary differences between comparable employers. Stock price volatility means equity value is variable.
• Technical specialization: Machine learning and AI engineering, security engineering, and cloud infrastructure (DevOps/SRE) roles typically command premiums above the general software developer median due to specialized skill requirements and strong market demand. Frontend, backend, and fullstack web development roles are the most numerous and tend to pay near or at the general median.
• Degree requirements: A bachelor's degree in computer science or a related field is typical for software engineering roles and the most common educational background among engineers at major employers. However, the field also employs meaningful numbers of engineers who entered through coding bootcamps, self-study, or associate-degree programs. BLS data does not require a specific credential for employment in this occupation, though employer preferences vary.
• Remote work and geographic arbitrage: Remote work allows engineers to earn salaries set by employers in high-paying markets while living in lower cost-of-living areas — a compensation advantage not available in most other professions. This dynamic has been particularly relevant since the expansion of remote work beginning in 2020.

According to the BLS Occupational Outlook Handbook for software developers, employment in this occupation is projected to grow 25% from 2023 to 2033 — much faster than the average for all occupations and one of the highest projected growth rates among major occupational categories.

The BLS projects approximately 153,900 software developer job openings per year over the decade, driven by continued digital transformation across industries, the growth of cloud computing, mobile applications, and artificial intelligence systems, and the increasing role of software in virtually every economic sector.

The growth of artificial intelligence tools — including large language models and automated code generation — is a frequently discussed factor in software engineering employment projections.

BLS projections reflect the agency's assessment that software engineer demand will continue to grow substantially even as productivity tools evolve.

Software engineers earning above the national median should build toward strong retirement savings goals, use a high-yield savings account for short-term reserves, and understand savings benchmarks by income level to ensure compensation growth translates into lasting financial security.