Are you considering a career in software engineering in Texas, or looking to benchmark your current compensation?
We have conducted a comprehensive analysis of 816 Software Engineering positions across Texas to provide insights into the Software Engineer salary landscape. This article details the Software Engineer salary and Software Engineer wage in Texas 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 Texas
The median Texas Software Engineer salary is $125,000 USD per year or $60.10 USD per hour. This figure provides insight into how much software engineers make in Texas and serves as a benchmark for Software Engineering salaries in the state. Let’s delve deeper into the average salary for software engineers across different experience levels and roles.
Salary Range Overview
Factors Influencing Civil Engineering Salaries
Educational Level
Here’s where it gets interesting: while a master’s degree is traditionally valued in tech, our Texas data reveals that PhDs command the highest premium at $157,341 annually. However, the software engineering job market in 2025 is stabilizing after a slow start, with demand shifting toward experienced developers and roles tied to AI and infrastructure.
The data shows that bachelor’s degree holders represent the vast majority of positions at nearly 68%, with their average salary of $124,039 very close to the overall median. This suggests that while advanced degrees can boost earning potential, practical experience and specialized skills often matter more in the Texas market.
What’s particularly noteworthy is the salary difference between master’s and bachelor’s holders is minimal—just $1,978 annually. This indicates that in Texas’s competitive tech market, hiring is shifting toward engineers with expertise in AI augmentation, system architecture, and cross-functional problem-solving rather than purely academic credentials.
Years of Experience
The data reveals a fascinating pattern: the most significant salary jump occurs between years 2 and 3, where compensation increases by over 11% from $117,726 to $131,260. This suggests that the transition from junior to mid-level represents a critical career milestone for Software Engineers in Texas.
But here’s what’s really telling: companies are demanding 3 years of experience for 35% of all positions—the single largest category. This “experience sweet spot” indicates that many developers are facing slower hiring timelines, mismatched expectations, and growing competition for the highest-paying engineering jobs as companies become more selective with their technical hires.
| Years of Experience | Percentage of Jobs | Number of Positions |
|---|---|---|
| 0 years | 4.44% | 8 |
| 1 year | 5.56% | 10 |
| 2 years | 21.11% | 38 |
| 3 years | 35.00% | 63 |
| 4 years | 4.44% | 8 |
| 5 years | 17.22% | 31 |
| 6 years | 3.33% | 6 |
| 7 years | 1.67% | 3 |
| 8 years | 4.44% | 8 |
| 10+ years | 2.78% | 5 |
The progression continues steadily, with 4-year experienced engineers earning $144,850 and 7-year veterans reaching $152,497. However, the relatively small number of senior positions (only 5 roles requiring 10+ years) suggests that career advancement often means moving into leadership or specialized roles rather than staying in individual contributor positions.
Work Arrangement
| Work Arrangement | Average Annual Salary (USD) | Number of Positions |
|---|---|---|
| Onsite | $131,925.2 | 95 |
| Hybrid | $125,326 | 72 |
| Remote | $120,133.5 | 61 |
Surprisingly, onsite positions command the highest Software Engineer salaries in Texas at $131,925—about $11,800 more than remote roles. This contrasts with national trends where remote work often comes with salary premiums. Remote work isn’t disappearing, but it’s stabilizing, suggesting companies are settling into hybrid models.
This Texas-specific pattern likely reflects the state’s business-friendly environment and the concentration of major tech companies establishing physical presences in Austin, Dallas, and Houston. Companies may be offering location premiums to attract top talent to their Texas operations, especially as talent inflows to hubs like San Francisco, Seattle, and Portland have decreased while influx was greatest in Florida and Texas.
Seniority Level
The progression from entry-level to lead represents a 59% increase in compensation, highlighting the significant value of experience and leadership capabilities in the Texas software engineering market. What’s particularly striking is the substantial jump from senior to principal level, $13,280 annually, suggesting that architectural and strategic responsibilities command premium compensation.
This aligns with current market dynamics where skills demand is shifting toward adaptability, problem-solving, and AI-driven expertise. For software engineers, the key to staying marketable in a competitive environment is not just technical skills, but understanding broader industry shifts. As tech hiring expands into finance, automation, and security, engineers who can adapt to these changes will be best positioned to thrive in 2025 and beyond.
Location
| City | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Carrollton | $176,450 | $84.83 |
| El Paso | $175,000 | $84.13 |
| Katy | $152,000 | $73.08 |
| Austin | $141,070.9 | $67.82 |
| Allen | $135,200 | $65.00 |
| Dallas | $122,416.1 | $58.85 |
| McKinney | $122,390.5 | $58.84 |
| Fort Worth | $122,100 | $58.70 |
| Plano | $119,822.2 | $57.61 |
| Spring | $116,900 | $56.20 |
| Van Horn | $115,190.3 | $55.38 |
| Addison | $111,800 | $53.75 |
| Houston | $111,672.2 | $53.69 |
| Roanoke | $109,450 | $52.62 |
| San Antonio | $109,386.3 | $52.59 |
Carrollton leads with the highest Software Engineer salaries in Texas at $176,450 annually, significantly outpacing even Austin, traditionally considered the state’s tech capital. This might surprise many, but it reflects the Dallas-Fort Worth metroplex’s emergence as a major tech hub. Computer systems design and tech consulting services have become prominent in the state’s high-tech frontier, led by the Apple, Meta and Google expansions in Austin. High tech has become a pillar of Austin’s economy, where the share of high-tech jobs is double that of the U.S. However, the salary data suggests that suburban Dallas markets like Carrollton may be offering premium compensation to compete for talent.
Austin’s position at $141,070 reflects its maturity as a tech market. Austin in particular has become a critical technology hub, leading many to compare the capital city to Silicon Valley. In 2021, Austin was named the fastest-growing major metropolitan area in the United States, primarily due to the city’s lower real estate costs and support of groundbreaking tech firms. Houston’s relatively modest showing at $111,672 might seem low, but consider this: Houston’s tech job median wages are significantly higher, 93 percent higher, to be exact, than the country’s median wages. The city’s tech focus on enterprise software, cybersecurity, and digital health may command different compensation structures than traditional software development.
Top Paying Companies in Texas
Here are the companies that consistently offer above-average Software Engineer salaries in Texas, representing some of the highest paying software engineering jobs in the state:
Highest Paying Employers
| Company | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Awesome Technologies | $250,000 | $120.19 |
| Freshworks | $218,292.5 | $104.95 |
| PIMCO | $207,500 | $99.76 |
| Method | $205,000 | $98.56 |
| Arrow Search Partners | $187,500 | $90.14 |
| WorldQuant | $187,500 | $90.14 |
| General Motors | $186,666.7 | $89.74 |
| Prismatic | $182,500 | $87.74 |
| Tronic | $180,000 | $86.54 |
| Verily | $179,000 | $86.06 |
| Prime Video & Amazon MGM Studios | $176,450 | $84.83 |
| Woot | $176,450 | $84.83 |
| $171,500 | $82.45 | |
| Amazon | $168,142.9 | $80.84 |
| Riccione Resources | $167,500 | $80.53 |
The list spans diverse sectors, from established tech giants like Google and Amazon to financial services (PIMCO), automotive (General Motors), and specialized consulting firms. Awesome Technologies leads at $250,000, though as a smaller company, this likely represents specialized, senior-level positions.
What’s particularly interesting is the strong showing of consulting and staffing firms like Arrow Search Partners and Riccione Resources. This reflects the growing demand for contract and specialized software engineering expertise in Texas, where Texas has emerged as one of the top hiring states for software engineers and developers. Within the next decade alone, Texas is projected to add over 15,000 software developer positions every year. With a projected job growth of 36% by 2030, Texas is one of the fastest-growing software engineering markets, outpacing nearly every other state in the country.
How to Maximize Your Software Engineer Salary Potential
Based on our comprehensive data analysis and current market trends, here are strategic approaches to optimize your Software Engineer salary in Texas:
- Target the 2-3 Year Experience Mark – The most significant salary jump occurs at this stage, representing the transition from junior to mid-level engineer
- Consider Geographic Arbitrage – Smaller metro areas like Carrollton and El Paso offer surprisingly high compensation, often with lower living costs than Austin
- Pursue Leadership Development Early – The progression from senior to principal level offers a $13,280 salary boost, highlighting the value of architectural and strategic skills
- Embrace Onsite Opportunities – Contrary to national trends, onsite positions in Texas command $11,800+ premiums over remote roles
Explore our detailed article on the software engineering skills required in 2025
The data presented in this article was compiled through an analysis of 816 publicly available software engineering salaries in Texas. Salaries, required education levels, work experience expectations, seniority titles, and locations were extracted and analyzed to identify trends and calculate average and median figures. The data analysis provides the most up-to-date information on how much software engineers make in Texas.
Market Reality Check
While the Texas market offers excellent opportunities, it’s important to acknowledge current challenges. In 2023 alone, over 300,000 tech workers were laid off. By 2024, another 130,000 jobs were cut. Each new wave of layoffs floods the market with more talent, creating a vicious cycle especially for junior developers, who now face intense competition from mid-level and senior engineers who are also job hunting.
However, Texas has shown resilience: Texas was spared the more significant high-tech layoffs that occurred in California in 2023 due in part to reallocation of tech activity from Silicon Valley to other parts of the country. Net job losses occurred in nearly all high-tech industries in California by the third quarter of 2022, while Texas tech sector cuts were not as pervasive. Texas computer manufacturing and tech consulting services employment gains offset some losses other tech industries experienced.
Future Trends in Software Engineering Salaries
The software engineering field in Texas continues to evolve, with increasing focus on:
- AI Integration and Automation: In the software industry, along with the rest of tech, artificial intelligence will have a major impact on spending and hiring in 2025 and beyond. AI is becoming vital to software development as the technology allows tasks like code generation, testing, and debugging to become partially, if not fully automated
- Semiconductor Manufacturing: The Texas Legislature approved a separate Texas CHIPS Act in 2023. The law authorized creation of the Texas Semiconductor Innovation Fund to invest $1.4 billion for private firms to increase microchip manufacturing capacity and conduct research. New investments spurred by the CHIPS acts include Texas Instruments’ $30 billion semiconductor manufacturing plant in Sherman, Texas, 65 miles north of Dallas, and Samsung’s $44 billion investment in semiconductor facilities in Taylor, Texas, 35 miles northeast of Austin
- Sustainable Computing: Software success is increasingly judged by the CFO and the CSO (Chief Sustainability Officer) as much as by the CTO. GPU-intensive AI projects can quickly burn a hole in the budget, and investors now scrutinize Scope 3 emissions during quarterly calls. Add an ultra-competitive talent market, where 72 % of knowledge workers say flexibility dictates loyalty, and operational discipline becomes the bedrock of innovation. The most mature organizations are blending FinOps with GreenOps: every workload carries both an hourly cost and a carbon score
Conclusion
The Software Engineering profession offers excellent earning potential across Texas, with the median Software Engineer salary reaching $125,000 USD annually. While education provides a foundation, experience and specialization significantly influence salary levels. Location choices within Texas and company selection have equally important impacts on total compensation package.
For Software Engineers looking to maximize their earning potential, a strategic approach combining technical skill development in AI and cloud technologies, geographic optimization, and leadership capabilities is essential. Understanding salary trends and market dynamics will help you negotiate competitive compensation packages and advance your career effectively in the Lone Star State.
The Texas tech market’s resilience during recent industry challenges, combined with major investments in semiconductor manufacturing and AI development, positions the state as a premier destination for software engineering careers. Whether you’re starting your career or looking to make a strategic move, Texas offers compelling opportunities for Software Engineers at all levels.
Frequently Asked Questions
