Software engineer pay
What software engineers earn — and keep — in 2026
Software development is among the highest-paid large occupations in the U.S. The BLS puts the median software developer at $133,080 (May 2024); the bottom 10% earn under $77,000 and the top 10% over $208,000. At large tech companies, cash base is only part of the story — restricted stock units (RSUs) and bonuses can match or exceed base pay.
Where a developer's paycheck goes
On the $133,080 median, a single engineer pays federal income tax in the 22%–24% brackets after the standard deduction, plus 6.2% Social Security (up to the $184,500 wage base) and 1.45% Medicare. High earners over $200,000 also pay the 0.9% Additional Medicare Tax. Maxing a pre-tax 401(k) ($23,500+ in 2026) is one of the most effective ways for engineers to cut the federal bite.
The take-home difference between tech hubs
A $150,000 offer in Seattle or Austin keeps more than the same offer in San Francisco, purely because Washington and Texas levy no state income tax while California taxes up to 13.3%. When comparing offers, always convert to after-tax pay — the cost-of-living gap matters too.
Compare engineering pay across states and roles
Check your net in no-tax Washington versus California, or compare with an accountant or physical therapist salary.
Questions
Software Engineer Salary Calculator FAQ
What is the average software engineer salary in 2026?
The U.S. Bureau of Labor Statistics reports a median annual wage of $133,080 for software developers (May 2024), with the top 10% earning over $208,000. Big-tech total compensation (base plus equity and bonus) often pushes well beyond the cash base, especially in high-cost hubs like the San Francisco Bay Area, Seattle and New York.
What is the take-home pay on a $133,080 software salary?
A single software engineer earning the $133,080 median takes home roughly $97,000 to $100,000 a year after federal income tax and FICA in a no-income-tax state, and closer to $90,000 in high-tax California. Equity (RSUs) is taxed as ordinary income when it vests, which can push you into a higher bracket.
How are RSUs and stock options taxed for engineers?
Restricted stock units (RSUs) are taxed as ordinary wage income at vesting — they appear on your W-2 and are subject to federal, state and FICA tax just like salary. This calculator handles your cash base; add the dollar value of vesting RSUs to your gross to see the combined take-home, since they stack at your marginal rate.
Which states are best for a software engineer's take-home?
Washington and Texas combine major tech employers with no state income tax, maximizing take-home. California pays the highest gross but taxes it up to 13.3%, so a Seattle or Austin offer can beat a Bay Area one on net pay even at a lower headline salary.
- Sources: BLS Occupational Outlook Handbook — Software Developers (median $133,080, May 2024) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base ($184,500) · State departments of revenue.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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