Earning a high salary means little if your rent, taxes, and groceries consume most of it. The best cities for tech workers are not necessarily the highest-paying ones—they are the ones where your net income stretches the furthest after all expenses.

We analyzed median software engineer salaries, local tax rates, housing costs, and general cost of living to rank the top 10 cities where tech workers get the most purchasing power in 2026.

How We Ranked

For each city, we calculated an adjusted disposable income using:

  • Median software engineer salary (base, not including equity)
  • Effective tax rate (federal/national + state/local + mandatory social contributions)
  • Average rent for a one-bedroom apartment in a central location
  • Cost of living index (food, transport, utilities, entertainment)

The result is an estimate of how much a typical mid-career software engineer actually keeps each month after taxes and basic living expenses.

The Rankings

1. Austin, Texas

  • Median SWE salary: $155,000
  • Effective tax rate: ~24%
  • One-bedroom rent: $1,500/month
  • Why it wins: No state income tax, strong tech job market (Tesla, Apple, Google, Oracle campuses), and moderate housing costs make Austin the best value in 2026. Your take-home on $150k goes remarkably far.

2. Dubai, UAE

  • Median SWE salary: AED 360,000 (~$98,000)
  • Effective tax rate: ~0% (no personal income tax)
  • One-bedroom rent: AED 6,000/month (~$1,635)
  • Why it ranks: Zero income tax means every dirham is yours. Salaries are lower than the US, but the tax advantage in Dubai is massive. Best for experienced professionals who can negotiate strong packages.

3. Seattle, Washington

  • Median SWE salary: $175,000
  • Effective tax rate: ~25%
  • One-bedroom rent: $2,100/month
  • Why it ranks: No state income tax plus access to top-tier employers (Amazon, Microsoft, Meta). Higher rent than Austin, but the salary premium more than compensates. A $200k salary in Seattle provides excellent purchasing power.

4. Berlin, Germany

  • Median SWE salary: EUR 68,000 (~$73,000)
  • Effective tax rate: ~42%
  • One-bedroom rent: EUR 1,300/month (~$1,400)
  • Why it ranks: The salary is modest by US standards, but Berlin's still-affordable housing (compared to London or Munich), comprehensive healthcare and social benefits, and vibrant quality of life make it a strong value proposition. Check what $80k buys in Berlin.

5. Chicago, Illinois

  • Median SWE salary: $145,000
  • Effective tax rate: ~30%
  • One-bedroom rent: $1,800/month
  • Why it ranks: A genuine big-city experience at a fraction of coastal costs. Growing tech scene with major offices from Google, Salesforce, and fintech firms. A $150k salary in Chicago delivers a very comfortable lifestyle.

6. Toronto, Canada

  • Median SWE salary: CAD 120,000 (~$88,000)
  • Effective tax rate: ~30%
  • One-bedroom rent: CAD 2,200/month (~$1,610)
  • Why it ranks: Canada's tech hub has a growing ecosystem (Shopify, Wealthsimple, Google DeepMind). Lower nominal salary than the US, but universal healthcare and reasonable costs outside downtown create solid value. See what a $100k salary means in Toronto.

7. Melbourne, Australia

  • Median SWE salary: AUD 130,000 (~$84,000)
  • Effective tax rate: ~30%
  • One-bedroom rent: AUD 2,000/month (~$1,300)
  • Why it ranks: Lower rent than Sydney, strong tech community, excellent quality of life, and universal healthcare. The cost of living in Melbourne is manageable on a tech salary.

8. Singapore

  • Median SWE salary: SGD 120,000 (~$89,000)
  • Effective tax rate: ~15%
  • One-bedroom rent: SGD 3,000/month (~$2,220)
  • Why it ranks: Extremely low taxes for the income level, no capital gains tax, and Asia-Pacific's strongest tech hub. Rent is high, but the tax savings are substantial. A $100k salary in Singapore is competitive.

9. Dublin, Ireland

  • Median SWE salary: EUR 78,000 (~$84,000)
  • Effective tax rate: ~35%
  • One-bedroom rent: EUR 2,000/month (~$2,160)
  • Why it ranks: European HQ for Google, Meta, Apple, Microsoft, and Amazon means plenty of high-paying roles. Salaries for Big Tech in Dublin approach US levels. Check software engineer salaries in Dublin.

10. Vancouver, Canada

  • Median SWE salary: CAD 115,000 (~$84,000)
  • Effective tax rate: ~29%
  • One-bedroom rent: CAD 2,400/month (~$1,755)
  • Why it ranks: Amazon, Microsoft, and EA have major offices here. Universal healthcare, stunning natural environment, and proximity to Seattle's job market (for remote roles) make it attractive. See what $100k looks like in Vancouver.

Notable Omissions

San Francisco and New York pay the highest gross salaries but rank poorly on purchasing power due to extreme housing costs and high state/city taxes. A $200k salary in San Francisco provides a lifestyle roughly equivalent to $120k–$130k in Austin.

Zurich pays well and has low taxes, but the cost of everyday goods and housing is among the highest in the world, eroding much of the advantage.

London is competitive for senior roles, especially in fintech, but high rent and a 40%+ effective tax rate at senior levels push it just outside the top 10.

The Bottom Line

The cities where tech salaries go furthest share common traits: moderate housing costs, reasonable taxes, and a growing employer base. If you are optimizing for financial outcomes rather than prestige, these ten cities deserve a serious look.

Compare how your salary stacks up across any two cities with our city comparison tool to find your best fit.