Are you considering a software engineer job in Texas, or looking to benchmark your current compensation?
We have conducted a comprehensive analysis of 588 software engineering positions across Texas to provide insights into the software engineer salary landscape. This article details the software engineer salaries and software engineer wage in Texas for 2025, exploring how much software engineers make and the key factors that influence cCore Technical Competencies:ompensation as revealed by the 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 engineer pay in the state.
Salary Range Overview
How Software Engineers Salaries vary with
Required Educational Level and Software Engineer Qualifications
Average Software Engineer Salary by Education Level
The data reveals fascinating insights about how education impacts software engineer salaries in Texas. While most positions require a bachelor’s degree, the compensation differences between education levels tell a compelling story about the value of advanced learning.
But what if you’re considering whether that master’s degree is worth it? The data shows a modest $3,120 increase from bachelor’s to master’s degree, a surprisingly small jump that might make you reconsider those student loan calculations. However, the real story emerges at the PhD level, where junior developers make $89,895 annually, and the most experienced specialists earn $154,547 per year nationally, suggesting that advanced specialisation pays off significantly in the long run.
Education Requirements Distribution
Texas software engineering positions predominantly require a bachelor’s degree, with over 65% of positions listing this as the minimum requirement. The relatively small number of high school diploma positions (1.18%) reflects the industry’s emphasis on formal technical education, though the competitive salaries for those positions suggest that exceptional skills and experience can sometimes overcome educational barriers.
Required Years of Experience and Software Engineer Wage Progression
Software Engineer Salary by Years of Experience
The most significant salary acceleration occurs between years 1-3, with a substantial $18,053 jump. Software engineers with 3-5 years of work experience can expect salaries in the range of $129,000 to $141,000 in Dallas, which aligns closely with our statewide data showing $135,843 for a 3-year experience level.
Experience Requirements Distribution
| Years of Experience | Percentage of Jobs | Number of Positions |
|---|---|---|
| 0 years | 5.01% | 20 |
| 1 year | 6.77% | 27 |
| 2 years | 15.54% | 62 |
| 3 years | 30.58% | 122 |
| 4 years | 5.26% | 21 |
| 5 years | 22.06% | 88 |
| 7 years | 4.26% | 17 |
| 8 years | 6.27% | 25 |
| 10+ years | 4.26% | 17 |
Our data suggests that the 3-year mark represents a critical inflexion point for software engineers in Texas, where you transition from “learning the ropes” to “driving real value” in the eyes of employers.
Seniority Level and Total Pay
The progression from internship to lead software engineer represents a 112% increase in compensation, highlighting the substantial value of experience and leadership capabilities in the software engineering field. This career trajectory provides clear benchmarks for salary expectations and demonstrates the significant earning potential as you advance through different levels of responsibility.
But what if you’re already at the median? The gap between mid-level ($122,888) and senior ($147,163) represents a $24,275 increase, often the result of developing specialised expertise, taking on mentorship responsibilities, or demonstrating architectural thinking that goes beyond just writing code.
Cities with Highest Software Engineer Salary in Texas
| City | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| El Paso | $175,000 | $84.13 |
| Katy | $152,000 | $73.08 |
| Austin | $144,891 | $69.66 |
| Dallas | $128,372 | $61.72 |
| Frisco | $125,700 | $60.43 |
| McKinney | $122,391 | $58.84 |
| Fort Worth | $122,100 | $58.70 |
| Plano | $118,644 | $57.04 |
| Spring | $116,900 | $56.20 |
| San Antonio | $112,702 | $54.18 |
| Addison | $111,800 | $53.75 |
| Houston | $110,731 | $53.23 |
El Paso surprisingly leads with the highest software engineer salaries in Texas, offering significantly higher software engineer pay than traditional tech hubs like Austin and Dallas. This unexpected leader might reflect the city’s strategic position for cross-border technology initiatives or specialized defense contracting opportunities.
Recent rankings show Dallas suburb Plano landing at #4 nationally for tech opportunities, while Austin holds strong at #7, and Houston maintains its position at #22. The Dallas-Fort Worth area is absolutely crushing it right now, especially for software developers and IT professionals, with amazing job growth and competitive salaries.
Austin’s position as third-highest ($144,891) reflects its established reputation as “Silicon Hills,” though the average salary for tech jobs is $151,873 when considering the broader tech sector. However, housing costs went up and fluctuated, and many people were frustrated and disappointed as the cost of living advantages that initially attracted tech workers have diminished.
Top Paying Companies in Texas
Here are the top companies that consistently offer above-average salaries for software engineers 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 | $218,293 | $104.95 |
| PIMCO | $207,500 | $99.76 |
| General Motors | $197,320 | $94.87 |
| Arrow Search Partners | $187,500 | $90.14 |
| WorldQuant | $187,500 | $90.14 |
| Prismatic | $182,500 | $87.74 |
| Tronic | $180,000 | $86.54 |
| Verily | $179,000 | $86.06 |
| Prime Video & Amazon MGM Studios | $176,450 | $84.83 |
| Amazon | $168,143 | $80.84 |
| CyberCoders | $155,000 | $74.52 |
| Adobe | $140,255 | $67.43 |
| Cititec | $140,000 | $67.31 |
| Oracle | $138,448 | $66.56 |
These organisations span diverse industry sectors, including fintech, entertainment technology, automotive, and cloud services, indicating strong demand for software engineering expertise across multiple industries. Despite industry shifts, the highest-paying jobs remain in big tech and high-margin companies. While AI companies are growing, they haven’t overtaken traditional top payers like Google, Meta, or hedge funds.
Notice anything interesting about this list? Traditional tech giants like Amazon are present, but financial services companies like PIMCO and emerging technology firms are offering competitive packages. This diversification reflects Texas’s growing position as a multi-industry tech hub rather than a single-sector market.
For a general insight on software engineering salaries for the United States, you can checkout 2025 Software Engineer Salary in US
How to Maximize Your Software Engineer Salary Potential
Based on our comprehensive data analysis, we recommend the following strategies to optimize your software engineer salary in Texas:
- Target the 3-Year Experience Sweet Spot – Our data shows the most significant salary acceleration occurs between years 1-3 of experience
- Consider Geographic Arbitrage – Cities like El Paso and Katy offer premium compensation packages that might offset lower cost of living
- Develop Leadership Skills Early – The progression to senior and lead software engineer roles offers substantial compensation increases
Technical Skills to Prioritise
- Cloud platforms (AWS, Azure, Google Cloud)
- Modern frameworks (React, Vue.js, Angular)
- Backend technologies (Node.js, Python, Java)
- DevOps and CI/CD pipelines
- Database technologies (SQL and NoSQL)
Explore our detailed article on the software engineering skills required in 2025
The data presented in this article was compiled through an analysis of 588 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.
Conclusion
The software engineering profession offers strong earning potential across Texas, with the median software engineer salary reaching $125,000 USD annually. While education provides a foundation, work experience and specialization significantly influence salary levels. Location choices and industry selection have equally important impacts on total compensation.
For software engineers looking to maximize their earning potential, a strategic approach combining technical skill development, professional certification, and leadership capabilities is essential. Dallas stands out for how it’s totally transformed into this amazing tech scene while keeping things affordable. When you compare it to places like San Francisco or NYC, you can actually afford to live here and still have money left over for a social life.
Understanding salary trends and market dynamics will help you negotiate competitive compensation packages and advance your career effectively in Texas’s thriving tech ecosystem. Whether you’re a junior software engineer or aspiring to become a lead software engineer, the job outlook for software developers and related roles like quality assurance analysts remains strong in the Lone Star State.
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