In the United States, the average base salary for a software engineer is $93,837 per year. However, senior and high-skills software engineers can earn significantly more. The highest 10% of earners make more than $170,100 per year on average, while the lowest 10% earn an average of $65,210 per year.
Salary is a crucial factor when choosing a career. In software engineering, the earnings potential is substantial. But how much can software engineers really earn?
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Key takeaways
- Skills impact salary: In-demand skills like AI, data science, and machine learning lead to higher pay.
- Experience matters: More experienced software engineers generally earn higher salaries, with quick promotions available based on merit.
- Technology’s influence: Specialized fields such as machine learning pay more compared to common skills like web development.
- Location factor: Engineers in major cities or tech hubs like California earn more than those in less tech-centric areas.
- Companies and industries: Larger firms and fast-growing industries offer higher salaries due to increased demand for specialized talent.
I’ve provided an overview of software engineer salaries in the USA above. Keep reading for more details on their earnings.
How Software Engineer’s Salary Vary
The salary of a software engineer depends on several factors such as experience, skillset, technology, location, and industry. Let’s explore each:
Skill
A software engineer’s salary varies based on skills. With the right expertise, they can command a high salary. Even entry-level engineers with valued skills can earn well.
The most in-demand skills for software engineers are expertise in artificial intelligence, data science, and machine learning. As demand grows, salaries for engineers with these skills also rise.
- Skills affect salary
- In-demand skills: AI, data science
- High demand raises salary
Experience
Experience greatly affects salaries. Typically, more experienced software engineers earn higher pay. Promotions are common, and with each step up, engineers can expect a notable salary increase.
However, opportunities are often based on merit rather than seniority in this industry. This means the best software engineers can quickly climb the ladder and earn a higher salary.
Technology
Technology impacts a software engineer’s salary. New tech increases demand for skilled engineers. For instance, engineers who build websites might earn less than those who develop machine learning models.
Website development is common, and many people can do it. Machine learning, however, is newer and specialized, so fewer have the skills. Consequently, software engineers with machine learning expertise often get higher salaries.
- Impact of technology on salary
- Emerging technologies increase demand
- Machine learning pays more than web dev
Location
Location can impact a software engineer’s salary. Engineers in major cities usually earn more than those elsewhere. This higher pay is due to the greater demand for talent in these areas.
Location
Location impacts a software engineer’s salary. Engineers in major cities often earn more due to a higher concentration of software firms. These firms pay more to attract the top talent.
California, home to many top tech firms, offers the highest average salary for software engineers. Conversely, states like Wyoming and North Dakota have lower averages.
| Factor | Details |
|---|---|
| Location | Affects salary |
| Major Cities | Higher salaries |
| California | Highest average |
| Wyoming, North Dakota | Lower average |
Organization
Company size can impact a software engineer’s salary. Larger companies often pay more because they have the resources to attract and keep top talent. They can also afford higher salaries.
Companies such as Google, Apple, Amazon, and Facebook are some of the most well-known firms that pay their software engineers well.
However, a small startup might lack the resources to pay software engineers as much. Still, they often offer benefits like equity, which can be valuable long-term and compensate for the lower salary.
- Large companies pay more
- Top payers: Google, Apple, Amazon, Facebook
- Startups offer equity
Industry
A software engineer’s salary is influenced by the industry they’re in. Those in rapidly growing sectors usually earn more due to higher demand for their skills.
Healthcare, fintech, and e-commerce are some of the fastest-growing industries. As these sectors expand, the demand and salaries for software engineers will likely rise.
- Industry growth affects salary
- Higher pay in rapid growth sectors
- Top areas: healthcare, fintech, e-commerce
What Type of Software Engineers Get Paid the Most?
Software engineers skilled in artificial intelligence, data science, and machine learning generally earn the highest salaries. These are newer, highly sought-after fields with limited skilled professionals, driving up their demand and pay.
According to payscale.com, the average salary for a software engineer with artificial intelligence skills is $125,000. Those with data science skills earn $111,943, while machine learning experts make around $130,000.
Here are some of the other high-paying software jobs:
1. IT Security Specialist
2. Data Warehouse Architect
3. DevOps Engineer
4. Big Data Engineer
5. Software Development Manager
6. Cloud Solutions Architect
These jobs pay well, but they require a lot of experience and skills. If you’re beginning your career as a software engineer, you might not get one of these jobs immediately.