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In which region of the United States is the best paid job related to the computer science career?
#computer-science
To be more precise salary with taxes
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4 answers
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Fred’s Answer
I don't know the specific details, but generally, places like silicon valley, Seattle, and New York will pay well. However, the cost of living there is also much higher. Housing prices can be 10x higher (or more) in those areas. Food, transportation, entertainment, gas, utilities...all these things come at a higher price. So you may find an area that pays 3-4 times as much as elsewhere, but the cost of living is 9-10x higher.
Is it worth it?
That depends on what is important to you.
Is it worth it?
That depends on what is important to you.
Updated
Chris’s Answer
Hi Adrian,
I'll concur with Fred, the highest salaries for computer science will be in either the Bay Area, California or New York. Other markets can pay very well (Los Angeles, Seattle, and Boston to name a few)
Taxes become complicated, because there's so much more to the equation than simple income tax - different states have different income taxes, sales taxes, property taxes, etc. If we just look at income tax, you'll generally find that the tax difference is relatively trivial compared to the difference in income; moreover, cost of living has a very greater impact on someones overall net income every year.
For example: According to Salary.com, an entry level Software Engineer in San Francisco makes ~91k; in Dallas, they make ~72k. On 91k of California income, you'd pay at most ~$5,500 (likely less, because of deductions) in income taxes, compared to 0% income tax in Texas. If we subtract that from the 91k income, you'd be making ~85k in San Francisco after state tax vs. 72k in Texas after (0%) state taxes. Seems like SF comes out way ahead, right?
A far greater impact will be things like housing. According to zumper.com, a 1-bedroom apartment in Dallas averages $1419/mo, in San Francisco, it's $2,929. That's ~$18,000 per year in extra housing costs, which is a heck of a lot bigger than the $5,500 in taxes. Depending on the area, a lot of other things may be more expensive - gas, groceries, restaurants, nightlife, etc.
One final thought: while it's useful to compare averages like this, it's also worth noting that the top employers in this field tend to pay far better than others, and a vast majority of their hiring is in a few key locations. It isn't crazy to see a top tech employer pay double or more the total compensation that you'd see from a non-top-tier employer in a less competitive market.
I'll concur with Fred, the highest salaries for computer science will be in either the Bay Area, California or New York. Other markets can pay very well (Los Angeles, Seattle, and Boston to name a few)
Taxes become complicated, because there's so much more to the equation than simple income tax - different states have different income taxes, sales taxes, property taxes, etc. If we just look at income tax, you'll generally find that the tax difference is relatively trivial compared to the difference in income; moreover, cost of living has a very greater impact on someones overall net income every year.
For example: According to Salary.com, an entry level Software Engineer in San Francisco makes ~91k; in Dallas, they make ~72k. On 91k of California income, you'd pay at most ~$5,500 (likely less, because of deductions) in income taxes, compared to 0% income tax in Texas. If we subtract that from the 91k income, you'd be making ~85k in San Francisco after state tax vs. 72k in Texas after (0%) state taxes. Seems like SF comes out way ahead, right?
A far greater impact will be things like housing. According to zumper.com, a 1-bedroom apartment in Dallas averages $1419/mo, in San Francisco, it's $2,929. That's ~$18,000 per year in extra housing costs, which is a heck of a lot bigger than the $5,500 in taxes. Depending on the area, a lot of other things may be more expensive - gas, groceries, restaurants, nightlife, etc.
One final thought: while it's useful to compare averages like this, it's also worth noting that the top employers in this field tend to pay far better than others, and a vast majority of their hiring is in a few key locations. It isn't crazy to see a top tech employer pay double or more the total compensation that you'd see from a non-top-tier employer in a less competitive market.
Very comprehensive answer...
Kishore Chekuru
Updated
Mark’s Answer
In addition to other answers, you may find https://www.levels.fyi/ to be a useful tool for software income by location. Compensation levels will generally depend more on company rather than location, with large software-focused companies like Google, Amazon, Apple, Microsoft, and Facebook (Meta), generally paying significantly more than smaller companies and startups, or non-software-focused companies, regardless of location.
This is most most noticeable compared to an earlier answer that mentions ~$91k average software engineer income in San Francisco,and ~$72k in Texas - while levels.fyi lists entry level income for major companies in the $150k-$200k range, with a median compensation of $232k in the SF bay area, and $160k in the greater Austin area (Texas). Working for a high-paying company has a much larger impact on income than working in a high-paying location.
This is especially true in the post-COVID era, as remote working has become more normalized, software companies will now offer higher compensation packages to remote workers or offices outside their main hubs, than they would have a few years ago.
This is most most noticeable compared to an earlier answer that mentions ~$91k average software engineer income in San Francisco,and ~$72k in Texas - while levels.fyi lists entry level income for major companies in the $150k-$200k range, with a median compensation of $232k in the SF bay area, and $160k in the greater Austin area (Texas). Working for a high-paying company has a much larger impact on income than working in a high-paying location.
This is especially true in the post-COVID era, as remote working has become more normalized, software companies will now offer higher compensation packages to remote workers or offices outside their main hubs, than they would have a few years ago.
Updated
Ian’s Answer
Silicon Valley and NYC are likely the two areas where you would be paid the most for the same position. I think you probably want to think of this more from an income to cost of living perspective, where those areas would likely rate lower due to higher cost of living and taxes. Additionally, most software engineers make well above what they need to survive, so the incremental value of a $5,000 to $10,000 is less significant than it might be in other professions. I think you should approach this more from a what do I want to do? what do I want to do when I'm not working perspective? than an absolute salary perspective.