Raw salary numbers tell an incomplete story. A $165,000 base in San Francisco and a $110,000 base in Austin can represent almost identical purchasing power once you account for taxes, rent, and day-to-day expenses. This guide ranks the top ten cities by median software engineer salary, then adjusts for cost of living to show where your money really goes furthest.
All figures represent median total base compensation for a mid-level (3–7 years experience) software engineer in 2026, sourced from aggregated compensation data.
1. San Francisco, CA — $165,000 median base
San Francisco remains the global benchmark for software engineering pay. The density of unicorns, established tech giants (Google, Meta, Salesforce, Stripe), and venture-backed startups keeps compensation aggressive at every level.
The catch: California's state income tax reaches 9.3% for this income bracket, and a one-bedroom apartment averages $3,100/month. On a purchasing-power-adjusted basis, San Francisco drops to roughly 5th place among US cities. Still excellent—but less dominant than the headline number suggests.
See our San Francisco software engineer salary page for a full breakdown.
2. Seattle, WA — $155,000 median base
Seattle combines Silicon Valley-level salaries with one significant advantage: no state income tax. Amazon's global headquarters and Microsoft's campus create enormous demand, while Meta, Google, Apple, and hundreds of mid-size tech firms fill the gaps.
After-tax take-home in Seattle is materially better than San Francisco for equivalent salaries. Housing is expensive but cheaper than the Bay Area—a one-bedroom averages around $2,200/month.
Explore the Seattle software engineer salary breakdown.
3. New York City, NY — $140,000 median base
New York's tech scene has matured rapidly since 2020. Finance-adjacent engineering roles (fintech, trading systems, quant infrastructure) command premium pay, and the city's startup ecosystem is the largest outside the Bay Area.
New York state income tax plus the city tax creates a combined effective rate of around 11–12% for this income level—the highest among US cities on this list. But the density of industries and networking opportunities are unmatched.
See New York City software engineer salaries.
4. Los Angeles, CA — $135,000 median base
LA's tech sector has expanded well beyond entertainment tech (though that remains a major employer). The city hosts significant aerospace, gaming, fintech, and e-commerce engineering hubs. Snap, TikTok US, and SpaceX are among the major employers.
California income tax applies here as in San Francisco, but housing costs are lower—a one-bedroom in popular tech neighborhoods (Santa Monica, Culver City, Playa Vista) averages $2,400/month.
Check Los Angeles software engineer salaries.
5. Boston, MA — $130,000 median base
Boston punches above its population weight in engineering compensation. The biotech, medical device, and robotics sectors demand specialized software engineers and pay accordingly. MIT and Harvard pipelines keep talent dense but also keep competition high.
Massachusetts has a flat 5% income tax, making after-tax income more predictable than California. Housing in Cambridge and Back Bay is expensive, but outer neighborhoods offer more reasonable rents.
6. Austin, TX — $115,000 median base
Austin's tech scene exploded through the 2020s as Tesla, Oracle, Dell, Apple, and dozens of startups relocated or expanded operations here. No state income tax is the headline advantage—engineers take home roughly 8–12% more than California equivalents at the same gross salary.
Cost of living, while rising rapidly, remains well below the coastal cities. A one-bedroom apartment averages $1,600/month. On a purchasing-power-adjusted basis, Austin's $115,000 competes closely with New York's $140,000.
7. Toronto, Canada — $110,000 USD median base
Toronto is North America's fastest-growing tech hub outside the United States. Shopify, Wealthsimple, and hundreds of US companies with Canadian engineering offices pay competitive USD-equivalent salaries to attract talent that might otherwise emigrate south.
Canada's healthcare system significantly offsets the somewhat lower nominal salaries—engineers don't face the health insurance premiums typical in the US. Ontario provincial income tax is substantial, but effective rates are broadly comparable to California once healthcare costs are factored in.
See Toronto software engineer salaries for a full comparison.
8. London, UK — $105,000 USD median base
London's fintech (Revolut, Wise, Monzo), gaming, and consultancy sectors drive strong engineering demand. Post-Brexit, the city has worked to retain its status as Europe's premier tech hub, with competitive visa programs and a deep talent pool from across the EU.
UK income tax and National Insurance contributions at this salary level create an effective rate of roughly 30–32%. However, the National Health Service removes a major cost uncertainty. Housing in zones 1–2 is expensive; outer zones offer better value.
Explore London software engineer salaries.
9. Amsterdam, Netherlands — $95,000 USD median base
Amsterdam benefits from the Netherlands' 30% ruling—a tax incentive for international workers that allows 30% of salary to be paid tax-free for up to five years. For engineers relocating from abroad, this effectively increases take-home pay dramatically.
Booking.com, ASML, Adyen, and the European offices of most major US tech companies are based here. The city is compact, bikeable, and high-quality-of-life by global standards.
See Amsterdam software engineer salaries.
10. Berlin, Germany — $80,000 USD median base
Berlin's salaries are the lowest on this list, but the city offers a compelling trade-off: high quality of life, affordable housing (by tech hub standards), strong job security protections, and a vibrant startup ecosystem built around companies like Zalando, SoundCloud, and N26.
Germany's tax burden is real—effective rates of 35–40% are typical. But when you net out housing costs, healthcare, and commuting expenses, Berlin's purchasing power is competitive with mid-tier US cities. It is particularly attractive for engineers who value work-life balance over maximum income.
Check Berlin software engineer salaries.
The Purchasing Power Bottom Line
Raw salary rankings are a starting point, not a conclusion. Once you adjust for taxes, housing, and cost of living:
- Austin and Seattle consistently top the purchasing-power rankings for US cities
- Amsterdam (with the 30% ruling) is the standout in Europe
- San Francisco is excellent but not the runaway winner its headline numbers suggest
- Berlin offers the best work-life balance per dollar of effective purchasing power in Europe
Use our salary comparison tool to benchmark your specific role, experience level, and city against these benchmarks—and see exactly how much you should be earning.