Are you considering a software engineer job in Illinois, or looking to benchmark your current compensation?
We have conducted a comprehensive analysis of 472 software engineering positions across Illinois to provide insights into the software engineer salary landscape. This article details the software engineer salaries and software developer wage trends in Illinois for 2025, exploring how much software developers make and the key factors that influence compensation as revealed by the data.
Average Software Engineer Salary in Illinois
The median software engineer salary in Illinois is $128,050 USD per year or $61.56 USD per hour. This figure provides insight into how much software developers make in Illinois and serves as a benchmark for engineering compensation in the state. Compared to national averages, Illinois offers competitive software engineer pay, particularly when factoring in the state’s relatively moderate cost of living outside of Chicago’s downtown core.
Salary Range Overview
Here’s where it gets interesting: The salary range in Illinois spans from entry-level positions at smaller companies to senior roles at top-tier financial trading firms and tech giants. The maximum salary of $500,000 reflects the premium compensation available in specialized fields like algorithmic trading and high-frequency trading, which have a strong presence in Chicago’s financial district.
How Software Engineers Salaries vary with
Required Educational Level and Software Engineer Qualifications
Illinois Software Engineering Salary by Education
The data reveals compelling insights about the value of advanced education in software engineering. While a bachelor’s degree provides a solid foundation with competitive compensation, pursuing a master’s degree yields approximately 10% higher earnings. However, the most dramatic jump comes with a PhD, where holders earn over 57% more than bachelor’s degree holders.
But what if you’re already in the field? The PhD premium suggests that those pursuing research roles, machine learning specializations, or positions requiring deep technical expertise can command significantly higher compensation. This aligns with the growing demand for AI and data science expertise across Illinois’s diverse tech ecosystem.
Education Requirements Distribution
Software engineering positions in Illinois predominantly require a bachelor’s degree, with over 80% of positions listing this as the minimum requirement. This reflects the industry’s emphasis on practical skills and work experience over advanced academic credentials for most roles.
However, the higher compensation for advanced degrees suggests strategic career planning can significantly impact long-term earning potential.
Required Years of Experience and Software Developer Wage Progression
Software Engineer Salary by Years of Experience
The data shows a clear, rewarding career progression path. The most significant salary acceleration occurs between years 1 and 4, where software developers see their compensation increase by over 51%. This suggests that the transition from junior software engineer to mid-level developer represents a critical career milestone, significantly impacting how much software engineers make as they gain practical experience.
Experience Requirements Distribution
| Years of Experience | Percentage of Jobs | Number of Positions |
|---|---|---|
| 0 years | 4.36% | 15 |
| 1 year | 4.94% | 17 |
| 2 years | 12.79% | 44 |
| 3 years | 28.20% | 97 |
| 4 years | 11.92% | 41 |
| 5 years | 25.58% | 88 |
| 7 years | 4.36% | 15 |
| 8 years | 7.85% | 27 |
The rise of AI-powered coding tools like GitHub Copilot has significantly altered software engineering hiring dynamics in 2025, with companies increasingly leveraging AI to automate routine coding tasks.
This trend means that engineers with 3+ years of work experience, who can effectively manage AI-augmented workflows and focus on system architecture, are particularly valuable in today’s market.
Seniority Level and Total Pay
The progression from entry-level to principal represents a 57% increase in compensation, highlighting the value of developing both technical depth and leadership capabilities in the software engineering field. This data provides insights into the potential for career advancement and salary growth in the profession.
Here’s what makes this progression particularly interesting: The relatively modest jump from lead software engineer to Principal levels suggests that at senior levels, compensation increases become more nuanced, often involving equity, cash bonuses, and specialized skills rather than just title progression.
Cities with Highest Software Engineer Salary in Illinois
| City | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Evanston | $162,500.00 | $78.13 |
| Oak Park | $162,500.00 | $78.13 |
| Atlanta | $156,000.00 | $75.00 |
| Mettawa | $150,800.00 | $72.50 |
| Normal | $144,250.00 | $69.35 |
| Hoffman Estates | $142,500.00 | $68.51 |
| Deerfield | $142,462.69 | $68.49 |
| Chicago | $139,958.52 | $67.29 |
| Northfield | $137,800.00 | $66.25 |
| Bloomington | $135,000.00 | $64.90 |
You might be surprised to see that Chicago doesn’t top this list. While Chicago offers competitive salaries averaging around $139,958, with the most common salary range between $130k-$140k, suburban communities like Evanston and Oak Park are leading in compensation. This likely reflects the presence of specialized companies, research institutions, and the appeal of suburban locations for tech companies seeking talent while avoiding downtown real estate costs.
The geographic distribution also tells a story about Illinois’s evolving tech landscape. Cities like Normal and Bloomington represent emerging opportunities outside the traditional Chicago tech corridor, potentially offering strong career growth with lower living costs.
Top Paying Companies in Illinois
Here are the companies that consistently offer above-average software engineer salaries in Illinois, representing some of the highest paying software engineering jobs in the state:
Highest Paying Employers
| Company | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Goliath Partners | $387,500.00 | $186.30 |
| Huxley | $225,000.00 | $108.17 |
| Harrington Starr | $220,000.00 | $105.77 |
| Belvedere Trading | $200,000.00 | $96.15 |
| Hudson River Trading | $200,000.00 | $96.15 |
| WorldQuant | $193,750.00 | $93.15 |
| Chicago Trading | $185,000.00 | $88.94 |
| EPITEC | $182,000.00 | $87.50 |
| American Express Global Business Travel | $180,000.00 | $86.54 |
| Amper Technologies | $180,000.00 | $86.54 |
| Maven Securities | $175,000.00 | $84.13 |
| Optiver | $175,000.00 | $84.13 |
| Supernova Technology™ | $170,000.00 | $81.73 |
| Wolverine Trading | $170,000.00 | $81.73 |
These organizations span diverse industry sectors, with a notable concentration in financial trading and fintech companies. The prominence of trading firms like Belvedere Trading, Hudson River Trading, and Optiver reflects Chicago’s status as a major financial center, where software engineers with expertise in low-latency systems, algorithmic trading, and quantitative finance can command premium salaries.
What’s particularly noteworthy is that many of these top-paying companies operate in specialized niches where technical performance directly impacts business outcomes—whether it’s microsecond improvements in trading algorithms or scaling systems for millions of users.
To get a quick insight into software engineering salaries across the United States, take a look at 2025 Software Engineer Salary in US
How to Maximize Your Software Engineer Salary Potential
Based on our comprehensive data analysis and current market trends, we recommend the following strategies to optimize your software engineer salary in Illinois:
- Target the 3-5 Year Experience Sweet Spot. The data shows the most significant salary acceleration occurs during this period. Use this time to develop specialized skills and demonstrate leadership capabilities.
- Consider Geographic Arbitrage. Suburban locations like Evanston and Oak Park offer the highest salaries while potentially providing better work-life balance and lower living costs than downtown Chicago.
- Specialize in High-Value Domains. Financial trading, AI/ML, and cybersecurity consistently command premium compensation.
Technical Competencies:
- AI/ML Integration: Learn to work effectively with AI coding assistants and understand machine learning fundamentals
- Cloud Architecture: AWS, Azure, and GCP expertise remains in high demand
- System Design: Scalability and performance optimization skills
- Security: Cybersecurity knowledge increasingly valuable across all sectors
Explore our detailed article on the software engineering skills required in 2025
The data presented in this article was compiled through an analysis of 472 publicly available software engineering salaries across Illinois. 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 was completed in May 2025, providing the most up-to-date information on how much software developers make in Illinois.
Conclusion
The software engineering profession offers strong earning potential across Illinois, with the median software engineer salary reaching $128,050 USD annually. While education provides a foundation, work experience and specialization significantly influence salary levels. Location choices within Illinois and company selection have equally important impacts on total compensation.
For software engineers looking to maximize their earning potential, a strategic approach combining technical skill development in AI-augmented workflows, specialization in high-demand areas like fintech or machine learning, and leadership capabilities is essential. The software engineer job market in 2025 is stabilizing with demand shifting toward experienced developers and roles tied to AI and infrastructure.
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