What this article covers
Opher Ganel compares what college-educated coders earn across the U.S., from national averages for computer engineers, computer scientists and software engineers to the best and worst states, metro areas and non-metro areas once pay is adjusted for cost of living. His conclusion: the cost-of-living-adjusted coder salary in the best location is about three times that of the worst, so where you work, and where you live while working remotely, can matter as much as what you do.
Key Takeaways
Software engineers earn more than computer scientists and computer engineers on average
Citing Glassdoor, Opher Ganel reports average salaries of $89,256 for computer engineers, $106,012 for computer scientists and $108,249 for software engineers. Pay varies widely by employer: Levels.fyi data showed Google software engineers starting at $198k in total compensation and reaching over $1 million.
Cost-of-living-adjusted coder pay varies about threefold between the best and worst locations
Using Hack Reactor data scaled by each state’s cost of living, the article ranks the five best and five worst states for software engineer pay, plus the top metro and non-metro areas. Battle Creek, MI beats every statewide average, and all three top non-metro areas beat every statewide average too.
South Dakota, Georgia and Virginia lead for computer scientist pay after cost of living
Based on Indeed data, South Dakota pays computer scientists 28% above the national average, or about $140,000 after adjusting for cost of living. Georgia comes second at roughly $128,000 adjusted, and Virginia third at about $111,600.
Programming, or coding, has been a financially rewarding career path for a long time, a trend that shows no signs of changing anytime soon.
However, not all coders are created equal.
On the low end, you can go through a few-week or few-month coding program, or get a college degree, which generally commands higher salaries. This includes Computer Science (CS), Computer Engineering (CE), and Software Engineering (SWE).
In the following, we’ll concentrate on those.
How Much Do Software Engineers, Computer Scientists and Computer Engineers Earn?
According to Glassdoor, Computer Engineers are at the low end of the scale, making an average of just $89,256. Next up are Computer Scientists, at an average salary of $106,012. A bit higher are Software Engineers, with an average salary of $108,249.
However, compensation varies wildly by employer or even by region.
For example, Levels.FYI shows the total compensation of Software Engineers at Google starts at $198k (of which $138k is base), and goes up to over $1 million (of which $331k is base).
Which States Pay Software Engineers the Most and Least After Cost of Living?
According to Hack Reactor, the median income for Software Engineers hits 6 figures in most states. When scaling by states’ relative cost of living, your 5 best options are:
On the opposite end, your 5 worst options are:
What Are the Best-Paying Metro and Non-Metro Areas for Software Engineers?
Drilling down deeper, your 3 best metro area options are:
As you can see, Battle Creek, MI beats out all statewide averages by a good margin; while the other two options beat all but the top two states.
And if city living isn’t your style, your 3 top choices are:
Interestingly, all three of these options beat out all statewide averages, and all but the single top metro area (which still comes in behind the top non-metro area).
Which States Pay Computer Scientists the Most, Adjusted for Cost of Living?
The best state for Computer Scientists, according to Indeed, is South Dakota, where pay is 28% higher than the national average. With a cost of living index of 97.0, the adjusted rate is 31% higher than the national average, which should work out to about $140,000.
In second place is Georgia, with 8% higher pay and a cost of living 10.6% below the national average, for an adjusted pay that’s about 21% above the national average, scaling to about $128,000.
Third is Virgina, with pay about 7% above the national average. With a cost of living about 1.6% higher than average, the adjusted pay is about 5% higher than average, or about $111,600.
The Bottom Line: Where You Live Can Make or Break a Coder’s Real Income
While this is hardly a definitive study, it does show that coder incomes vary widely from state to state and even inside states.
If you’re willing and able to move, you can pick and choose where to look for a job. This could be crucial, as the cost-of-living-adjusted average coder salary in the best location is 3-fold higher than in the worst!
When comparing offers from different locations, consider the local cost of living to see how easily you’ll be able to afford living there, and how much of your admittedly high income will be leftover.
Given the widespread acceptance of remote work these days, your financially ideal solution is to accept a position with a company that pays well, but work remotely from a low-cost locale. However, note that some employers pay differently if you commute to the office vs. working remotely from a different city or state.
Frequently Asked Questions
How much does a software engineer make on average?
Citing Glassdoor, the article puts the average software engineer salary at $108,249, slightly above computer scientists ($106,012) and computer engineers ($89,256). Compensation varies widely by employer and region, and at top employers such as Google, total compensation can range from about $198k to over $1 million.
Which state pays computer scientists the most after cost of living?
According to the Indeed data cited in the article, South Dakota is the best state for computer scientists, with pay 28% above the national average and a cost of living index of 97.0. That works out to roughly $140,000 in cost-of-living-adjusted pay. Georgia and Virginia follow.
Is it better for a software engineer to live in a big city or a smaller town?
Not necessarily a big city. The article finds that the top metro area, Battle Creek, MI, beats all statewide averages, but the top three non-metro areas also beat every statewide average, and the best non-metro area comes out ahead of even the top metro area on a cost-of-living-adjusted basis.
How should coders compare job offers in different locations?
Opher Ganel suggests weighing each offer against the local cost of living to see how easily you can afford to live there and how much of your income will be left over. If you can move, you can choose where to look for work, since adjusted pay in the best location is about three times that of the worst.
Can working remotely increase a coder’s real income?
Yes, potentially. The article describes the financially ideal setup as taking a well-paying job and working remotely from a low-cost area. However, some employers pay differently depending on whether you commute to the office or work remotely from another city or state.
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Disclaimer: This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.
About the author
Contributing Writer, Wealthtender
My career has taken some unexpected turns, from earning a PhD in experimental high-energy physics, to conducting cosmic-ray research in Antarctica, to supporting NASA projects and programs, to running my own consulting business. I also run several other small businesses and help my wife run her Marriage and Family Therapy practice.
Those experiences taught me to question assumptions, think critically, and recognize that real-world decisions of any significance rarely have simple answers that apply to everyone. Today, I bring that perspective to writing about personal finance. Drawing on my analytical background, business experience, and research, I explore financial decisions, challenge conventional wisdom, and help readers understand the tradeoffs that can affect their financial well-being. To complement my own research and experience, I also weave insights from financial professionals into my articles, drawing on their expertise and real-world experience helping clients navigate financial decisions and challenges.
At medium.com/@opher-ganel, you can read more of my articles and subscribe to receive email notifications when new ones come out.