Are you considering a career in software engineering in California, or looking to benchmark your current compensation?
We have conducted a comprehensive analysis of 838 software engineering positions across California to provide insights into the Software Engineer salary landscape. This article details the Software Engineer salary and Software Engineer wage in California for 2025, exploring how much software engineers make and the key factors that influence compensation as revealed by our salary survey data.
Average Software Engineer Salary in California
The median California software engineer salary is $160,000 USD per year or $76.92 USD per hour. This figure provides insight into software engineer earnings in California and serves as a benchmark for the Software Engineering salary in the state.
Salary Range Overview
The data presented in this article was compiled through an analysis of 838 publicly available software engineering salaries in California. Salaries, required education levels, experience expectations, seniority titles, and locations were extracted and analyzed to identify trends and calculate average and median figures. The salary survey data analysis was completed in 2025, providing the most up-to-date information on how much software engineers make in California.
Factors Influencing Software Engineer Pay
- Educational Level
- Years of Experience
- Seniority Level
- Remote Work Arrangements
- Location
- Company
Educational Level
| Education Level | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Bachelor’s Degree | $141,742.90 | $68.15 |
| Master’s Degree | $151,105.80 | $72.65 |
| PhD | $161,441.00 | $77.62 |
Education Requirements Distribution
| Education Level | Number of Positions | Percentage |
|---|---|---|
| Bachelor’s Degree | 242 | 57.21% |
| Master’s Degree | 119 | 28.13% |
| PhD | 62 | 14.66% |
The data reveals an interesting pattern in California’s tech landscape. While bachelor’s degree holders represent the majority at 73.75% of positions with an average salary of $128,429 nationally, California shows a more distributed educational requirement with bachelor’s degrees representing 57.21% of positions. Here’s where it gets particularly interesting: pursuing advanced education yields measurable returns, with PhD holders earning about $20,000 more annually than bachelor’s degree holders.
This 14% salary premium for advanced degrees reflects California’s position as a global tech hub where companies compete fiercely for top talent. The state’s concentration of research institutions, AI companies, and cutting-edge startups creates unique opportunities for those with advanced technical expertise in various software engineering roles.
Years of Experience
| Years of Experience | Percentage of Jobs | Number of Positions |
|---|---|---|
| 0 years | 6.47% | 37 |
| 1 year | 10.14% | 58 |
| 2 years | 27.45% | 157 |
| 3 years | 29.55% | 169 |
| 4 years | 8.22% | 47 |
| 5 years | 11.19% | 64 |
| 6 years | 2.27% | 13 |
| 7 years | 1.40% | 8 |
| 8 years | 2.10% | 12 |
| 9 years | 0.17% | 1 |
| 10+ years | 1.05% | 6 |
Software Engineer Salary by Years of Experience
| Years of Experience | Average Annual Salary (USD) |
|---|---|
| 0 years | $127,923.50 |
| 1 year | $149,991.30 |
| 2 years | $158,797.40 |
| 3 years | $165,096.70 |
| 4 years | $184,865.80 |
| 6 years | $199,272.50 |
| 9 years | $202,500.00 |
The data tells a compelling story about career progression in California’s competitive tech market. Those with 3-5 years of experience saw a nearly six percent salary increase, marking a significant reversal from last year’s eight percent decline. This suggests that mid-career professionals are experiencing a market correction after the challenging period of 2023-2024.
What’s particularly striking is the salary jump that occurs around the 4-year mark, where compensation increases by over $19,000 – this represents the transition from junior to senior developer roles, a critical inflection point where you move from learning fundamentals to driving technical decisions.
However, while hiring for mid- and senior-level roles rebounded last year following mass layoffs in 2023, it continues to decline at the entry level. This creates both challenges and opportunities – new graduates face a tougher market, but those who do break into software engineering careers can expect accelerated growth in their software engineer earnings.
Remote Work
| Work Arrangement | Average Annual Salary (USD) | Number of Positions |
|---|---|---|
| Onsite | $167,307 | 416 |
| Remote | $124,519.60 | 123 |
| Hybrid | $173,807.80 | 294 |
The Remote Work Premium Paradox
Here’s where California’s data reveals something fascinating that challenges conventional wisdom. While remote work gained massive popularity during the pandemic, the salary survey data shows that hybrid arrangements actually command the highest premiums at $173,808 annually, followed by onsite positions at $167,307.
Remote positions, surprisingly, offer the lowest average compensation at $124,520. This doesn’t mean remote work is less valuable – rather, it reflects California companies’ strategic approach to talent acquisition. Companies are willing to pay premiums for employees who can collaborate in-person when needed, while remote positions may include candidates from lower-cost-of-living areas outside California.
For software engineers, this presents a strategic decision: Are you optimizing for lifestyle flexibility or maximum compensation? The $49,000 difference between hybrid and remote work represents a significant trade-off that deserves careful consideration when evaluating your total compensation package.
Seniority Level
| Seniority Level | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Internship | $114,886.60 | $55.23 |
| Entry-Level | $128,612.40 | $61.83 |
| Mid-Level | $162,031.90 | $77.90 |
| Lead | $176,987.50 | $85.09 |
| Senior | $195,626.60 | $94.05 |
| Principal | $202,500.00 | $97.36 |
The progression from internship to principal level represents a 76% increase in compensation, demonstrating the substantial value of experience and leadership capabilities in software engineering roles. The data shows the largest salary jumps occur when transitioning to management roles.
What’s particularly noteworthy is the relatively modest gap between Senior and Principal levels ($7,000), suggesting that the principal track focuses more on deep technical expertise rather than pure compensation maximization. This provides insights into career pathing – if your primary goal is income optimization, the management track typically offers higher ceiling potential for software engineer earnings.
Location
| City | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Los Gatos | $420,500 | $202.17 |
| San Carlos | $255,000 | $122.60 |
| Foster City | $235,000 | $112.98 |
| Elk Grove | $197,650 | $95.02 |
| Palo Alto | $185,536.60 | $89.20 |
| San Francisco | $180,204 | $86.64 |
| West Hollywood | $180,000 | $86.54 |
| Menlo Park | $176,190.70 | $84.71 |
| Sunnyvale | $172,203.90 | $82.79 |
| Mountain View | $170,219.10 | $81.84 |
| Emeryville | $166,627.50 | $80.11 |
| Culver City | $163,100 | $78.42 |
| Cupertino | $162,275 | $78.02 |
| San Mateo | $161,023 | $77.41 |
| Santa Monica | $159,950 | $76.90 |
Los Gatos, California, surprisingly leads with the highest software engineer salaries in the United States, offering significantly higher software engineering wages than traditional tech hubs. The average salary for software engineers in Los Gatos is an impressive $420,500 annually.
This may be attributed to the concentration of high-growth companies and startups in the area, combined with competition from established tech giants like Netflix, which has a major presence there.
The geographic salary distribution reveals an interesting pattern: while Silicon Valley cities dominate the top spots, emerging tech hubs like West Hollywood and Culver City are offering competitive packages, reflecting the broader distribution of tech companies beyond traditional boundaries. It’s worth noting that the mobile developer salary in these areas also tends to be competitive, often aligning closely with general software engineer compensation.
Top Paying Companies in California
Here’s a breakdown of companies that consistently offer above-average Software Engineer salaries in California, representing some of the highest paying software engineering jobs in the state:
Highest Paying Employers
| Company | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Netflix | $420,500 | $202.17 |
| Cluely | $416,000 | $200.00 |
| CHAI: AI Platform | $400,000 | $192.31 |
| Lambda | $330,000 | $158.65 |
| OpenAI | $327,000 | $157.21 |
| Magic | $325,000 | $156.25 |
| xAI | $310,000 | $149.04 |
| Slack | $263,175 | $126.53 |
| Saragossa | $262,500 | $126.20 |
| Decagon | $260,000 | $125.00 |
| Evolve Group | $255,000 | $122.60 |
| Oxford Global Resources | $239,200 | $115.00 |
| Salesforce | $238,675 | $114.75 |
| ByteDance | $237,500 | $114.18 |
| Elicit | $237,500 | $114.18 |
The top-paying companies reveal a clear trend: AI and machine learning companies dominate the highest compensation tiers. Companies like OpenAI, xAI, CHAI: AI Platform, and Lambda are offering packages that reflect both the scarcity of AI talent and the massive business value these technologies create.
A significant trend is the demand for AI-related skills across various industries, not just within tech-specific companies. This suggests that Software Engineer salaries with AI expertise will continue commanding premium rates across multiple sectors.
Traditional tech giants like Netflix and Salesforce remain competitive, but the emergence of AI-focused companies at the top of the compensation ladder signals where the market is heading. For software engineers, developing expertise in machine learning, natural language processing, and AI infrastructure represents a strategic career investment.
It’s also worth noting that the DevOps engineer salary in California tends to be competitive, often falling in the upper ranges of software engineering compensation due to the critical nature of their role in modern development practices.
How to Maximize Your Software Engineer Salary Potential
Based on our comprehensive salary survey data analysis, we recommend the following strategies to optimize your Software Engineer salary in California:
Strategic Career Development
- Target the 3-5 Year Experience Sweet Spot – Those with 3-5 years of experience saw a nearly six percent salary increase, making this the optimal time for career acceleration
- Consider Hybrid Work Arrangements – With hybrid positions commanding $173,808 average salaries, this arrangement offers the best of both compensation and flexibility
- Pursue Advanced Education Strategically – While not always necessary, PhD holders earn 14% more than bachelor’s degree holders in California’s competitive market
Geographic and Company Strategy
- Explore Beyond Traditional Tech Hubs – Cities like Los Gatos and Foster City offer premium compensation with potentially lower competition
- Target AI and Machine Learning Companies – AI and Machine Learning have led to an increase in job opportunities, serving as catalysts for creating new roles
- Consider Emerging Tech Sectors – Manufacturing surfaced in this year’s data as a standout sector for tech compensation growth, showing an impressive 15.1% salary increase
Key Skills to Develop
Technical Competencies:
- AI/ML frameworks (TensorFlow, PyTorch, scikit-learn)
- Cloud platforms (AWS, GCP, Azure)
- DevOps and infrastructure automation
- Full-stack development capabilities
- Data engineering and analytics
Emerging Technologies:
- Generative AI and large language models
- Kubernetes and containerization
- Blockchain and Web3 development
- Edge computing and IoT
- Cybersecurity integration
Software Skills:
- Python, JavaScript, Go, Rust
- React, Angular, Vue.js
- Docker, Terraform, Jenkins
- SQL and NoSQL databases
Explore our detailed article on the Software Engineering Skills Required in 2025
Future Trends in Software Engineering Salaries
The software engineering field in California continues to evolve, with increasing focus on:
Technology Trends Driving Salary Growth
- Artificial Intelligence and Machine Learning – For the third consecutive year, AI and Machine Learning have been pivotal in shaping the IT sector
- Cloud-Native Development – Infrastructure automation and scalable system design
- Cybersecurity Integration – Security-first development practices
- Edge Computing – Distributed systems and IoT integration
- Quantum Computing – Emerging opportunities for specialized expertise
Market Dynamics
According to the U.S. Bureau of Labor Statistics, software development roles, including QA analysts and testers, are projected to grow 17% from 2023 to 2033, adding approximately 327,900 jobs. However, some leaders, like Salesforce CEO Marc Benioff, have already suggested that AI may reduce the need to hire new engineers by boosting productivity.
This creates a fascinating dynamic: while overall demand grows, the nature of Software Engineer roles is evolving toward higher-level problem solving and AI integration rather than routine coding tasks. This shift is likely to impact the average salary for software engineers across different specializations.
Conclusion
The software engineering profession offers strong earning potential across California, with the median software engineer salary reaching $160,000 USD annually. While education provides a foundation, experience and specialization in emerging technologies significantly influence Software Engineer wage levels. Location choices and company selection have equally important impacts on total compensation packages.
For those pursuing software engineering careers and looking to maximize their earning potential, a strategic approach combining technical skill development in AI/ML, geographic flexibility, and leadership capabilities is essential. Understanding salary trends and market dynamics will help you negotiate competitive compensation packages and advance your career effectively in this rapidly evolving field.
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