Total compensation figures dominate tech salary discussions, but raw TC numbers obscure more than they reveal. A $180,000 salary in Seattle vs. $150,000 in Austin aren't what they appear after taxes and housing costs.
Software Engineer Salaries by City (2025)
Median total compensation at senior engineer (L4-L5 equivalent) level:
| City | Median TC | Adj. purchasing power | Tax burden |
|---|---|---|---|
| San Francisco | $240,000 | $140,000 | Very high |
| New York City | $220,000 | $145,000 | Very high |
| Seattle | $210,000 | $165,000 | Low (no income tax) |
| Los Angeles | $195,000 | $130,000 | High |
| Boston | $185,000 | $155,000 | High |
| Denver | $165,000 | $148,000 | Medium |
| Austin | $150,000 | $148,000 | Low (no income tax) |
| Chicago | $160,000 | $145,000 | Medium-high |
| Atlanta | $145,000 | $148,000 | Low |
| Miami | $140,000 | $130,000 | Low (no income tax, high housing) |
| Remote (US-based) | $145,000-200,000 | Varies | Depends on state |
Purchasing power calculation: Adjusted for housing, federal+state+local taxes, and local price index (food, transport, healthcare).
Why Seattle Often Beats San Francisco After Taxes
San Francisco vs. Seattle comparison for $240K vs. $210K TC:
| San Francisco | Seattle | |
|---|---|---|
| Gross TC | $240,000 | $210,000 |
| Federal income tax | -$52,000 | -$44,000 |
| State income tax | -$24,000 | $0 |
| Local taxes | -$4,000 | $0 |
| 1BR apartment (median) | -$36,000/yr | -$24,000/yr |
| Take-home after taxes+rent | $124,000 | $142,000 |
Seattle's no-income-tax policy plus lower rents flips the comparison despite $30K less in gross pay.
Big Tech vs. Non-FAANG Salaries
| Company tier | Median L4 TC | Comp structure |
|---|---|---|
| FAANG+ (top 10) | $220,000-350,000 | Base + RSU-heavy |
| Tier 2 tech (top 100) | $160,000-240,000 | Base + RSU |
| Series B/C startup | $130,000-180,000 | Base + equity |
| Mid-market tech | $120,000-160,000 | Base-heavy |
| Non-tech enterprise | $100,000-140,000 | Base + bonus |
RSU timing matters: FAANG RSUs vest over 4 years. A $350K package that's 40% RSU is $200K base + $150K RSU/year. In a down market, that $150K RSU could be worth $60K. Model scenarios with 50% haircut on equity compensation.
Remote Work Geographic Arbitrage
The best salary-to-cost ratios for US remote workers:
| City | Median remote TC available | Cost vs. SF | Net advantage |
|---|---|---|---|
| Pittsburgh, PA | $130,000-170,000 | 45% cheaper | Strong |
| Raleigh, NC | $140,000-180,000 | 48% cheaper | Strong |
| Columbus, OH | $130,000-165,000 | 50% cheaper | Strong |
| Salt Lake City, UT | $140,000-175,000 | 40% cheaper | Good |
| Nashville, TN | $135,000-175,000 | 38% cheaper | Good |
Remote work at $160K in Pittsburgh ($65K/year in housing) leaves more take-home than on-site at $200K in SF ($108K/year in housing).
International Tech Hubs (for Remote-Friendly Companies)
| City | Senior eng salary (local) | US$ equiv | Purchasing power |
|---|---|---|---|
| Toronto, Canada | CAD $130,000 | $96,000 | Good |
| London, UK | £95,000 | $120,000 | Moderate |
| Berlin, Germany | €90,000 | $97,000 | Good |
| Amsterdam | €95,000 | $103,000 | Good |
| Lisbon, Portugal | €55,000 | $60,000 | Excellent |
| Warsaw, Poland | PLN 180,000 | $45,000 | High |
| Singapore | SGD $150,000 | $110,000 | Moderate |
European engineers, particularly in Portugal and Poland, have the highest purchasing power relative to salary due to low cost of living.
The Real Question: Total Wealth Accumulation
The city that maximizes total wealth accumulation over 10 years:
Austin scenario ($150K TC, no state tax, $1,800/mo rent):
- Annual savings capacity: ~$55,000
- 10-year savings (6% investment return): ~$760,000
San Francisco scenario ($240K TC, 9.3% state tax, $4,500/mo rent):
- Annual savings capacity: ~$65,000
- 10-year savings (6% investment return): ~$895,000
The SF advantage narrows to $135K over 10 years — barely 1% annual advantage on total wealth — while requiring 2x rent and 5-10x commute costs.
Use the Salary Comparison Calculator to compare offers in different cities with full tax and cost-of-living adjustment.