Are you considering a career in software engineering in Tennessee, or looking to benchmark your current compensation against the evolving tech landscape?
We have conducted a comprehensive analysis of 512 software engineering positions across Tennessee to reveal how much software engineers make and the key factors that influence compensation. Our salary survey data focuses on education, career progression, geographical opportunities, remote work impact, and advancement into leadership roles, providing valuable information for both entry-level positions and experienced professionals in various software engineering roles.
Average Software Engineer Salary in Tennessee
The median Tennessee software engineer salary is $158,125 per year or $76.02 per hour. This figure provides insight into software engineer earnings in Tennessee and serves as a benchmark for engineering compensation in the Volunteer State.
Salary Range Overview
Factors Influencing Software Engineer pay
Educational Level
The education landscape for software engineering careers in Tennessee tells a different story than many other engineering disciplines. Major tech companies like Amazon and Oracle are expanding, demanding skilled coders proficient in languages like Java, Python, and JavaScript.
The data reveals that while a bachelor’s degree remains the gold standard for most positions at nearly 70% of job postings, the salary premiums between education levels are surprisingly minimal. This suggests that in Tennessee’s software engineering market, practical skills and experience often matter more than advanced degrees.
What this means for your career: If you’re considering whether to pursue a master’s degree, the Tennessee market suggests you might get better ROI by focusing on building your portfolio, gaining certifications, and accumulating real-world experience. The small salary difference between bachelor’s and master’s degree holders indicates that Tennessee employers value demonstrated ability over educational credentials.
Years of Experience
The data reveals a fascinating pattern: the most dramatic salary jump occurs between years 2 and 3, where software engineers see their compensation increase by 38%. This transition represents a critical career milestone where you move from junior to intermediate level, significantly impacting how much a software engineer makes as they gain work experience.
| Years of Experience | Percentage of Jobs | Number of Positions |
|---|---|---|
| 0 years | 2.33% | 8 |
| 1 year | 2.33% | 8 |
| 2 years | 2.92% | 10 |
| 3 years | 28.86% | 99 |
| 4 years | 13.70% | 47 |
| 5 years | 30.03% | 103 |
| 6 years | 10.79% | 37 |
| 8 years | 7.87% | 27 |
But here’s what’s particularly interesting about Tennessee’s market – the demand clusters around the 3-year and 5-year experience marks, representing nearly 59% of all job postings combined. This suggests Tennessee companies are hungry for developers who’ve moved beyond the beginner phase but haven’t yet reached senior-level compensation expectations.
Seniority Level
The progression from entry-level to management represents a 203% increase in compensation, highlighting the value of experience and leadership capabilities in Tennessee’s software engineering field. What’s particularly noteworthy is the relatively modest gap between mid-level and lead positions, suggesting that Tennessee’s market rewards depth of technical expertise nearly as much as formal leadership responsibilities.
Remote Work
One of the most compelling findings in our analysis is the significant impact of remote work arrangements on software engineer earnings:
| Work Arrangement | Average Annual Salary (USD) | Number of Positions |
|---|---|---|
| Remote | $176,039 | 92 |
| Onsite | $145,902 | 303 |
| Hybrid | $142,675 | 117 |
In the second quarter (Q2) of 2025 (April 1, 2025, through June 30, 2025), remote job postings grew by 8%, signaling steady demand and long-term resilience in the remote workforce. Remote positions command a 21% premium over onsite roles in Tennessee, reflecting the competitive nature of the remote talent market.
This creates a unique opportunity for Tennessee-based software engineers: you can earn California-level salaries while enjoying Tennessee’s lower cost of living. Nashville’s thriving ecosystem, lower living costs, and educational resources, including coding bootcamps, make it a prime location for tech careers and startups. The report explains some of the key factors of tech industry growth in the Greater Nashville area: above-average wages, thousands of open positions, and a relatively low cost of living.
Location
| City | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Memphis | $161,329 | $77.56 |
| Nashville | $153,071 | $73.59 |
| Chattanooga | $138,278 | $66.48 |
| Oak Ridge | $135,000 | $64.90 |
| Knoxville | $132,838 | $63.86 |
| La Vergne | $129,333 | $62.18 |
| Hermitage | $128,800 | $61.92 |
| Rockford | $121,350 | $58.34 |
| Franklin | $119,808 | $57.60 |
| Brentwood | $108,750 | $52.29 |
| Collierville | $97,632 | $46.94 |
| Pulaski | $62,500 | $30.05 |
Memphis surprisingly leads Tennessee’s software engineering compensation, offering salaries that rival those in major tech hubs. Amazon alone is dropping over 5,000 new corporate and tech jobs by 2025, while Oracle is investing a mind-blowing $1.2 billion to build a massive riverfront campus that’ll employ thousands more.
This expansion is creating upward pressure on salaries across the state. The data reveals significant geographic variation within Tennessee – there’s nearly a $100,000 difference between the highest and lowest-paying cities. This suggests that location strategy can be as important as skill development for maximizing your software engineer salary.
Top Paying Companies in Tennessee
Here are the companies that consistently offer above-average software engineer salaries in Tennessee, representing some of the highest paying software engineering jobs in the state:
Highest Paying Employers
| Company | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| xAI | $310,000 | $149.04 |
| Affirm | $236,591 | $113.75 |
| Microsoft | $202,160 | $97.19 |
| GEICO | $195,000 | $93.75 |
| WP Engine | $195,000 | $93.75 |
| Jobot Consulting | $176,800 | $85.00 |
| CrowdStrike | $175,000 | $84.13 |
| Thyme Care | $175,000 | $84.13 |
| Amazon | $172,910 | $83.13 |
| IonQ | $163,576 | $78.64 |
| Crowe | $161,500 | $77.64 |
| Lensa | $161,200 | $77.50 |
| Jobot | $157,500 | $75.72 |
| Addison Group | $156,250 | $75.12 |
The presence of companies like xAI (Elon Musk’s AI venture) and other cutting-edge tech firms in Tennessee’s market indicates the state’s growing reputation as a serious tech destination. With companies like Microsoft and AWS (Amazon Web Services) already established here and Oracle moving its world headquarters to Nashville, the demand for a skilled AI workforce is skyrocketing – and HPC makes AI go.
These organizations span diverse sectors including AI, fintech, cybersecurity, and cloud computing, indicating strong demand for software engineering expertise across multiple high-growth industries.
How to Maximize Your Salary Potential
Based on our comprehensive salary survey data analysis, we recommend the following strategies to optimize your software engineer earnings in Tennessee:
Target the 3-Year Experience Sweet Spot – Our data shows the most significant salary acceleration happens between years 2-3. Focus intensively on skill development during your first two years to position yourself for this critical jump.
Consider Remote-First Companies – With remote positions offering a 21% salary premium, actively pursuing remote opportunities can significantly boost your earning potential while allowing you to enjoy Tennessee’s low cost of living.
Geographic Strategy Matters – Consider relocating within Tennessee. The $28,000+ salary difference between Memphis and Nashville could justify a move, especially when factoring in cost of living variations.
Focus on High-Growth Industries – Companies in AI, cybersecurity, and fintech consistently offer top-tier compensation. Some analysts project that global IT spending will grow by 9.3% in 2025, with data center and software segments expected to grow at double-digit rates. The semiconductor industry had a robust 2024, but 2025 could be even better—as industry revenue is projected to grow by double digits.
Explore our article on the software engineering skills required in 2025
Future Trends in Software Engineering Salaries
Tennessee’s software engineering market is positioned for continued growth, with several trends shaping compensation:
Technology-Driven Growth
By 2025, experts predict a 12% growth in tech jobs across Middle Tennessee. The state’s investment in technology infrastructure, including record-breaking enrollment with 3,121 total students –representing an increase of nearly 10 percent over the previous fall. Enrollment of first-time freshmen grew 25.6 percent this year, to 760 students in engineering programs, indicates a robust pipeline of talent development.
Remote Work Evolution
Remote employment in software development has grown popular in 2024 allowing unparalleled freedom and access to worldwide talent pools. In 2024 remote labor became standard in software development giving teams unparalleled freedom and access to global talent. This trend continues to benefit Tennessee-based engineers who can access global salary scales.
Emerging Specializations
Engineers developing expertise in AI, quantum computing, and sustainable technology are likely to command premium salaries as Tennessee positions itself as a leader in these emerging fields. The average salary for mobile developer roles is also expected to increase, reflecting the growing importance of mobile technologies in various industries.
The data presented in this article was compiled through an analysis of 512 publicly available software engineering salaries in Tennessee. The city’s tech scene is experiencing a 12% job growth rate and boasts median tech salaries of $72,645, 79% above the city average. On a growth basis, Texas, North Carolina, Florida, New Jersey and Tennessee saw the biggest gains in net tech employment gains during the 2024 reporting period.
Conclusion
Tennessee’s software engineering profession offers compelling earning potential, with the median software engineer salary reaching $158,125 annually. The state’s unique combination of lower living costs, growing tech ecosystem, and access to remote opportunities creates an attractive value proposition for software engineering careers.
For software engineers looking to maximize their total compensation package, a strategic approach combining technical skill development, geographic considerations, and remote work opportunities is essential. With the projected job growth of the industry over the next half-decade set to continue as new tech companies move to town and existing businesses expand their tech capacities, we must work as a united community to develop more local tech talent to fill those open roles.
The data clearly shows that Tennessee is not just participating in the national tech boom it’s emerging as a significant player with its own advantages and opportunities for software engineering roles.
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