Are you considering a career in software engineering in the United States, or looking to benchmark your current compensation? This article provides valuable salary insights for both entry-level positions and experienced workers in the field.
We have conducted a comprehensive analysis of 5,160 software engineering positions across the United States to provide insights into the software engineer salary landscape. This article details the Software Engineer Salary in US for 2025, exploring how much software engineers make and the key factors that influence compensation as revealed by the data. We’ll focus on education, career progression, geographical opportunities, and advancement into leadership roles, providing valuable information for both junior software engineers and seasoned professionals in the field.
Average Software Engineer Salary in US (2025)
The median US software engineer salary is $133,644 USD per year or $64.25 USD per hour. This figure provides insight into how much software engineers make in the United States and serves as a benchmark for the engineering salary in the country. Let’s delve deeper into the average base salary and software engineer earnings across different levels.
The software engineer salary numbers for 2025 in the US vary quite a bit. US software engineers earn an average of $88,019.13 per year. The median salary sits at $81,598.40, which gives us a better picture since it isn’t affected by the highest and lowest earners.
The difference between these numbers makes sense. A small group of software engineers earn really high salaries, which pushes the average up. You can see this in the standard deviation of $54,277.04, suggesting big differences in what people make.
The salary range runs from $25,908 to $1.32 million annually. Most software engineers make $43,639.40 of a median salary.
Contract workers earn an hourly software engineering salary of $42.32 on average. The median rate gives us a clearer viewpoint at $39.23 per hour.
Software Engineer Salary by Seniority Level
The progression from internship to management represents a 133% increase in compensation, highlighting the value of experience and leadership capabilities in the software engineering field. The hiring market strongly favors mid-level and senior engineers, as companies want candidates who can contribute immediately, reducing the need for training and onboarding.
What’s particularly noteworthy is the substantial jump from senior software engineer ($165,909) to management ($197,649) a 19% increase that reflects the premium placed on leadership skills in addition to technical expertise. For those aiming even higher, the principal software engineer role often commands salaries well above $200,000, with some reaching $300,000 or more in top tech companies.
Salary by Education and Experience
The data reveals a clear educational premium in software engineering compensation. While a bachelor’s degree is sufficient for most positions (73.75% of roles), pursuing a master’s degree can lead to a 14% salary increase, with master’s degree holders earning $146,026 compared to $128,429 for bachelor’s degree holders.
But what if you’re considering a PhD? The numbers show an even more compelling story PhD holders command the highest salaries at $167,389 annually, representing a 30% premium over bachelor’s degree compensation. This suggests that advanced education in software engineering can significantly impact your earning potential, particularly for roles in research, AI development, or specialized technical domains.
Software engineering positions in the United States predominantly require a bachelor’s degree, with nearly 74% of positions listing this as the minimum requirement. Interestingly, associate degrees represent less than 1% of requirements, indicating the technical complexity and educational expectations in the field have risen significantly over the past decade.
Years of experience and salary progression
Here’s a fascinating pattern that challenges conventional wisdom: the most significant salary jump occurs in the first year of experience, where compensation increases by over 20% from $111,929 to $135,352. This suggests that transitioning from new graduate to having real-world experience represents the most critical career milestone for software engineers.
However, the biggest jump happens at 4 years of experience, where average compensation reaches $144,857.50, which is 77% higher than starting salaries.
For mid-level positions, including the software engineer iii role, Software Engineers earned between $107,322 and $137,804, while senior software engineers earned between $130,486 and $164,034.
We know job searching can be overwhelming, especially when you’re trying to time your career moves. The data suggests focusing on that crucial 2-4 year mark for maximum salary growth potential.
Software Engineer Salary by Work Arrangement
| Work Arrangement | Average Annual Salary (USD) | Number of Positions |
|---|---|---|
| Onsite | $147,409 | 2,762 |
| Hybrid | $148,637 | 1,511 |
| Remote | $118,768 | 887 |
This is one of the most surprising findings in our analysis. Remote software engineers earn significantly less than their onsite counterparts, with a $28,641 difference between remote ($118,768) and onsite ($147,409) positions.
But here’s the nuance that many miss: postings for fully remote Software Developer roles continue to drop, while the majority of Remote Software Engineer salaries currently range between $120,000 (25th percentile) to $173,000 (75th percentile) with top earners making $205,000 annually, suggesting there may be many opportunities for advancement based on skill level and years of experience.
The remote salary “penalty” may actually reflect geographic arbitrage—remote employers will do their research and pay you a fair wage to thrive based on cost of living and national minimum wages/pay rates.
16.9% of software engineers make $200k+ in remote roles, with 286 out of 1,689 software engineering positions analyzed offering $200k+ salaries—the highest percentage of any field.
Top Paying Cities for Software Engineers
Location is a vital factor that determines software engineer salaries in US markets. The salary patterns across the country show some surprising trends beyond the usual tech hubs.
| City | State | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|---|
| Los Gatos | CA | $420,500 | $202.17 |
| Tysons Corner | VA | $260,000 | $125.00 |
| San Carlos | CA | $255,000 | $122.60 |
| Mountain View | CA | $246,900 | $118.70 |
| Richmond | VA | $215,500 | $103.61 |
| Fort George G. Meade | MD | $202,500 | $97.36 |
| Elk Grove | CA | $197,650 | $95.02 |
| New York City | NY | $192,111 | $92.36 |
| Miami | FL | $188,820 | $90.78 |
| Morganville | NJ | $187,200 | $90.00 |
Los Gatos, California, surprisingly leads with the highest software engineer salaries in the United States, offering significantly higher software engineering wages than traditional tech hubs. Orlando leads America as the highest-paying city for software engineers with an exceptional $241,737.60 average annual salary, highlighting Florida’s growing tech scene and tax benefits.
San Francisco is the highest-paying city, with an average wage of $148,924, while the average software engineer salary in Los Angeles is around $125,529 yearly, and depending on the skills and experience level, a software engineer’s salary in NYC can reach $145,149.
The geographic salary variations tell a compelling story about the evolving tech landscape. Your geographic location can double your salary as a software engineer, and emerging tech centers provide an ideal mix of high compensation and reasonable living costs.
What Top Tech Companies Really Pay
Here is a list of the top companies that consistently offer above-average salaries for software engineers in the United States, representing some of the highest paying software engineering jobs in the country:
| Company | Average Annual Salary (USD) | Average Hourly Rate (USD) |
|---|---|---|
| Goliath Partners | $575,000 | $276.44 |
| Netflix | $420,500 | $202.17 |
| Cluely | $416,000 | $200.00 |
| CHAI: AI Platform | $400,000 | $192.31 |
| NVIDIA | $389,750 | $187.38 |
| Pinwheel | $355,000 | $170.67 |
| Lambda | $330,000 | $158.65 |
| OpenAI | $327,000 | $157.21 |
| Magic | $325,000 | $156.25 |
| xAI | $310,000 | $149.04 |
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.
These organizations span diverse industry sectors including AI research, streaming entertainment, semiconductor technology, and specialized technical services, indicating strong demand for software engineering expertise across multiple cutting-edge industries. FAANG+ companies pay the highest software engineering salaries globally.
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 the United States:
Strategic Career Development
- Pursue Advanced Education Strategically – While a bachelor’s degree opens doors, a master’s degree can increase earning potential by 14%, and a PhD by 30%
- Focus on the 1-4 Year Experience Mark – The most significant salary increases occur during this period
- Consider Geographic Opportunities – Cities like Los Gatos and Mountain View offer premium compensation packages
- Develop Leadership Skills – Progression to management roles offers 19% higher compensation than senior individual contributor positions
- Master In-Demand Technologies – The fields of machine learning, artificial intelligence, data analysis, data privacy, cloud computing, and cybersecurity will drive demand for software engineers, with some of the most lucrative tech fields including network architects, cloud engineers and architects, big data engineers, and DevOps engineers.
Key Technical Skills to Develop
- Programming Languages: JavaScript, HTML/CSS, Python, SQL, TypeScript, Bash/Shell, Java, C#, C++, and C were the most popular programming languages worldwide in 2024.
- AI Integration: The demand for AI literacy has risen in the last couple of years, with 63.2 percent of professional developers using AI tools in their workflow. Being able to effectively and ethically leverage AI to increase your productivity is a desirable skill that may help you stand out as a job candidate.
- Full-Stack Development: MERN stack is a popular framework among full-stack developers, well known for its versatility.
- Cloud Technologies: Focus on AWS, Azure, and Google Cloud platforms
- DevOps and Infrastructure: The average big data engineer salary is approximately $153,050, and the average DevOps engineer salary is roughly $123,113.
Details about relevant skills are explored in the Top Software Engineering Skills Required in 2025
Conclusion
The software engineering profession offers exceptional earning potential across the United States, with the median software engineer salary reaching $133,644 USD annually. While education provides a foundation, 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, continuous learning, and leadership capabilities is essential. Navigating the tech industry in 2025 will demand more than technical expertise; it will require adaptability, continuous learning, and the ability to navigate the evolving landscape of AI, cybersecurity, and digital transformation. With a growing shift toward skills-based hiring, job seekers must highlight their impact and practical abilities.
Understanding salary trends and market dynamics will help you negotiate competitive compensation packages and advance your career effectively in this rapidly evolving field. As the industry moves towards greater salary transparency, staying informed about current salary insights and trends becomes even more crucial for career growth and fair compensation.
FAQs
