Are you considering a career in software engineering in Minnesota, or looking to benchmark your current compensation?
We have conducted a comprehensive analysis of 573 software engineering positions across Minnesota to provide insights into software engineer earnings. This article details the software engineer salary in Minnesota 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 Minnesota
The median Minnesota software engineer salary is $129,000 USD per year or $62.02 USD per hour. This figure provides insight into how much software engineers make in Minnesota and serves as a benchmark for engineering salaries in the state.
Salary Range Overview
Factors Influencing Software Engineer Salary
Educational Level
The data reveals fascinating insights about the relationship between education and software engineer pay in Minnesota. Here’s what the numbers tell us:
The data reveals that while a bachelor’s degree is sufficient for most positions, pursuing an advanced degree can lead to significantly higher compensation. PhD holders earn nearly 46% more than those with bachelor’s degrees, which highlights the premium placed on advanced research and specialized knowledge in the field.
Interestingly, the jump from bachelor’s to master’s degree shows a more modest 4% increase, suggesting that practical experience may be valued more highly than additional coursework at this level. This pattern indicates that the cost of living and the local demand for the work are among the factors affecting wages, and Minnesota’s tech sector rewards deep specialization and research capabilities.
Software engineering positions in Minnesota predominantly require a bachelor’s degree, with over 77% of positions listing this as the minimum requirement. This aligns with national trends where bigger companies typically pay 18.41% more than smaller companies for a Software Engineer, and these larger organizations often have more flexible educational requirements while focusing on practical skills and experience.
Years of Experience
The data shows a compelling salary progression story that every Minnesota software engineer should understand. The most dramatic jump occurs between the entry-level and one-year mark, where compensation increases by over 43%. This suggests that surviving that crucial first year and proving your competency leads to significant market recognition.
Here’s where it gets interesting: the 3-year experience mark appears to be another inflection point, with salaries jumping to nearly $128,000. This aligns with the Entry Level Software Engineer job market in both Minneapolis, MN and the surrounding area being very active, indicating strong demand for developers who’ve moved beyond the junior phase.
| Years of Experience | Percentage of Jobs | Number of Positions |
|---|---|---|
| 0 years | 2.88% | 12 |
| 1 year | 4.57% | 19 |
| 2 years | 9.38% | 39 |
| 3 years | 21.39% | 89 |
| 4 years | 7.93% | 33 |
| 5 years | 29.09% | 121 |
| 6 years | 5.05% | 21 |
| 7 years | 7.69% | 32 |
| 8 years | 6.73% | 28 |
| 9 years | 0.24% | 1 |
| 10+ years | 5.05% | 21 |
The steady climb from 3 to 8 years of experience shows consistent 15-20% increases at each major milestone, demonstrating that experience directly translates to higher software engineer wages in Minnesota’s competitive market.
Seniority Level
The progression from entry-level to director level represents a staggering 156% increase in compensation, highlighting the immense value of leadership capabilities and technical expertise in software engineering roles. The data reveals an interesting pattern: the jump from senior individual contributor ($141,702) to people management roles shows two distinct paths.
The “Lead” role, typically a senior technical position without direct reports, commands slightly higher compensation than traditional “Senior” roles, while “Manager” positions—focused on people management—actually show lower compensation. This suggests that Minnesota’s tech market particularly values deep technical expertise and technical leadership over traditional management roles.
The director level represents the apex of both technical and business leadership, commanding over $215,000 annually—a testament to the value placed on professionals who can bridge technical execution with strategic business objectives.
Remote Work
One of the most compelling findings in our analysis is the significant impact of work arrangement on software engineer pay:
| Remote Status | Average Annual Salary (USD) | Number of Positions |
|---|---|---|
| Remote | $148,104 | 155 |
| Hybrid | $132,419 | 180 |
| Onsite | $131,272 | 236 |
Remote positions command a premium of over $16,800 compared to onsite roles—a 13% increase that reflects the competitive landscape for distributed talent. This premium suggests that companies offering remote work are competing in a national, rather than just regional, talent pool.
The hybrid model, increasingly popular post-pandemic, sits in the middle ground, offering a $1,147 premium over fully onsite positions. This modest increase suggests that the flexibility of hybrid work is seen as valuable but not as competitively necessary as full remote capabilities.
For software engineers in Minnesota, this data provides powerful leverage in salary negotiations: demonstrating the ability to work effectively in a remote environment can literally translate to a five-figure increase in the total compensation package.
Location
| City | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Golden Valley | $181,311 | $87.17 |
| Wayzata | $175,000 | $84.13 |
| White Bear Lake | $167,500 | $80.53 |
| Richfield | $162,032 | $77.90 |
| Maplewood | $154,960 | $74.50 |
| Minnesota Lake | $154,960 | $74.50 |
| Eagan | $149,022 | $71.65 |
| Medina | $147,500 | $70.91 |
| Minneapolis | $144,406 | $69.43 |
| Minneapolis-Saint Paul | $142,303 | $68.41 |
| Brooklyn Park | $135,751 | $65.26 |
| Eden Prairie | $134,622 | $64.72 |
Golden Valley emerges as Minnesota’s software engineering salary leader, offering compensation packages that exceed even Minneapolis by over $36,000 annually. This premium likely reflects the city’s concentration of corporate headquarters and established technology companies that compete aggressively for senior talent.
We’ve identified 10 cities where the typical salary for a Software Engineer job is above the average in Minnesota. Topping the list is Excelsior, with Le Sueur and Chaska close behind in second and third. Chaska beats the Minnesota average by 9.5%, and Excelsior furthers that trend with another 20451 (14.2%) above the $144,486.
What’s particularly interesting is the geographic clustering around the Twin Cities metro area, with suburban communities like Wayzata, White Bear Lake, and Richfield offering premium compensation packages. This suggests that companies in these areas are competing not just with local firms, but with Minneapolis-based organizations for the same talent pool.
Top Paying Companies in Minnesota
Here’s a list of the top companies that consistently offer above-average salaries for software engineers in Minnesota, representing some of the highest paying software engineering jobs in the state:
Highest Paying Employers
| Company | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Affirm | $210,654 | $101.28 |
| Dagster Labs | $205,000 | $98.56 |
| Resideo | $204,667 | $98.40 |
| Ltimindtree | $197,600 | $95.00 |
| Gravie | $187,696 | $90.24 |
| CONCORD | $187,200 | $90.00 |
| Microsoft | $186,029 | $89.44 |
| Amazon | $185,007 | $88.94 |
| GEICO | $182,500 | $87.74 |
| CVS Health | $177,675 | $85.42 |
| eBay | $177,050 | $85.12 |
| Jobot Consulting | $176,800 | $85.00 |
| Cargill | $175,000 | $84.13 |
| Amazon Web Services (AWS) | $172,910 | $83.13 |
| Aditi Consulting | $171,253 | $82.33 |
The salary landscape reveals fascinating insights about Minnesota’s tech ecosystem. Affirm leads the pack with compensation exceeding $210,000, a testament to fintech’s premium on engineering talent. What’s particularly noteworthy is the presence of both established tech giants (Microsoft, Amazon) and emerging companies (Dagster Labs, Gravie) in the top tier.
The data shows that the average software engineer salary in the start-up industry is $122,617, the highest of any industry. The average salary for software engineers in the finance industry is $111,876, but these Minnesota-specific numbers suggest that local companies are paying well above national averages to compete for talent.
Traditional Fortune 500 companies like Cargill ($175,000) and newer entrants like Gravie ($187,696) demonstrate that Minnesota’s diverse economic base, from agriculture to healthcare technology, creates competitive pressure that benefits software engineers across all sectors.
How to Maximize Your Software Engineer Salary Potential
Based on our comprehensive salary survey data analysis, here are strategic recommendations to optimize your software engineer earnings in Minnesota:
Education and Skill Development
- Consider Advanced Degrees Strategically – While a bachelor’s degree opens doors, a PhD can increase earning potential by 46%
- Focus on High-Value Specializations – Areas like fintech, data engineering, and machine learning command premium salaries
- Develop Remote Work Capabilities – Remote positions pay $16,800+ more than onsite roles
Career Timing and Progression
- Maximize the 1-Year Experience Mark – The biggest salary jump (43%) happens after your first year
- Target the 3-Year Milestone – Another significant increase occurs at this experience level
- Choose Technical Leadership Over Management – Lead roles often outpay management positions in Minnesota
Geographic and Company Strategy
- Consider Premium Suburbs – Golden Valley and Wayzata offer 25%+ premiums over Minneapolis
- Target High-Paying Industries – Fintech (Affirm), data infrastructure (Dagster Labs), and established tech giants lead compensation
- Negotiate Remote Options – Even hybrid arrangements command salary premiums
Dive into our in-depth examination of the Top Software Engineering Skills Required in 2025
Future Trends in Software Engineering Salaries
The software engineering field in Minnesota continues to evolve. The average salary for software engineers has risen by $18,613 over the last ten years. In 2014, the average software engineer earned $81,647 annually, but today, they earn $100,260 a year. This 23% increase over the decade indicates strong, sustained growth in the profession.
Engineers who develop expertise in these emerging areas are likely to command premium salaries as Minnesota companies compete for talent with specialized knowledge. The demand for software engineers is expected to grow, particularly in healthcare technology, fintech, and advanced manufacturing sectors that are strong in Minnesota’s economy.
The data presented in this article was compiled through an analysis of 573 publicly available software engineering salaries in Minnesota. 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 software engineer earnings in Minnesota.
Conclusion
Software engineering careers offer exceptional earning potential across Minnesota, with the median software engineer salary reaching $129,000 USD annually. Our analysis reveals that strategic career decisions around education, location, and specialization can significantly influence the total compensation package.
For software engineers looking to maximize their earning potential, a multi-faceted approach combining technical skill development, strategic career timing, and geographic flexibility is essential. The data shows that Minnesota’s software engineering market rewards both deep technical expertise and leadership capabilities, with remote work capabilities adding substantial salary premiums.
Understanding these salary trends and market dynamics will help you negotiate competitive compensation packages and advance your career effectively in Minnesota’s thriving technology sector. Whether you’re considering entry-level software engineering roles or looking to progress in your career, this comprehensive guide provides valuable insights into software engineer earnings and career prospects in Minnesota for 2025 and beyond.
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