Taxes, cost of living, and salary data across 50 U.S. states.
States
50
No Income Tax
9
states
Highest Avg
$181,000
Hawaii
Best Value
$140,741
Maryland
Data updated
Hawaii pays the highest average Software Engineer salary at $181,000, but Maryland delivers the best purchasing power at $140,741 after cost of living. 9 states charge no income tax.
Top 15 States for Tech Salaries (2026)
Source: SEC filings, H-1B LCA (DOL), BLS OES, and 50+ job platforms. Cost-of-living adjusted via BEA Regional Price Parities.
#
State
Metros
Avg SE Median
vs Q1 2026
Tax Status
COL-Adjusted
1
Hawaii
1
$181,000
+5.2% (+$9,000)
11%
$139,231
2
Washington DC
1
$170,000
+3.0% (+$5,000)
10.75%
$136,000
3
California
5
$169,400
+3.9% (+$6,400)
13.3%
$136,613
4
Massachusetts
1
$168,000
+4.3% (+$7,000)
5%
$137,705
5
New Jersey
3
$156,667
+0.9% (+$1,334)
10.75%
$132,769
6
New York
2
$154,000
+4.1% (+$6,000)
10.9%
$137,500
7
Alaska
1
$154,000
+3.4% (+$5,000)
No income tax
$136,283
8
Maryland
1
$152,000
+6.3% (+$9,000)
5.75%
$140,741
9
Colorado
2
$151,000
+2.4% (+$3,500)
4.4%
$136,036
10
Illinois
1
$149,000
+5.7% (+$8,000)
4.95%
$139,252
11
Washington
2
$147,000
+3.2% (+$4,500)
No income tax
$136,111
12
Maine
1
$146,000
+5.0% (+$7,000)
7.15%
$139,048
13
Virginia
3
$144,333
+2.4% (+$3,333)
5.75%
$134,891
14
Oregon
1
$144,000
-0.7% ($-1,000)
9.9%
$130,909
15
Connecticut
1
$143,000
+0.0% (+$0)
6.99%
$132,407
Methodology
Salary estimates are aggregated from SEC proxy filings, Department of Labor H-1B LCA disclosures, Bureau of Labor Statistics Occupational Employment and Wage Statistics (OES), and compensation data from 50+ job posting platforms. Cost-of-living adjustments use Bureau of Economic Analysis Regional Price Parities (RPP). Data covers January 2022 through April 2026. Figures represent estimated annual base salary unless otherwise noted.
Source: SEC filings, H-1B LCA (DOL), BLS OES, and 50+ job platforms. Cost-of-living adjusted via BEA Regional Price Parities.
#
State
Avg Tech Salary
Est. Tax Savings vs CA (13.3%)
COL-Adjusted
1
Alaska
$154,000
$20,482
$136,283
2
Washington
$147,000
$19,551
$136,111
3
New Hampshire
$140,000
$18,620
$132,075
4
Texas
$135,250
$17,988
$138,010
5
Florida
$134,667
$17,911
$133,334
6
Nevada
$127,500
$16,958
$132,813
7
Tennessee
$124,000
$16,492
$130,526
8
South Dakota
$116,000
$15,428
$136,471
9
Wyoming
$114,000
$15,162
$131,034
Methodology
Salary estimates are aggregated from SEC proxy filings, Department of Labor H-1B LCA disclosures, Bureau of Labor Statistics Occupational Employment and Wage Statistics (OES), and compensation data from 50+ job posting platforms. Cost-of-living adjustments use Bureau of Economic Analysis Regional Price Parities (RPP). Data covers January 2022 through April 2026. Figures represent estimated annual base salary unless otherwise noted.
Hawaii pays the highest average Software Engineer salary at $181,000 in 2026, driven by its major metro area with high employer density. However, its 11% state income tax reduces take-home pay.
Not necessarily. Among the 9 no-income-tax states tracked, Alaska offers an average of $154,000 for Software Engineers. While some no-tax states pay below the national average, Washington (home to Amazon and Microsoft) and Texas (Austin, Dallas, Houston) offer competitive salaries with zero state income tax.
Maryland offers the best purchasing power with a COL-adjusted average of $140,741. Its 5.75% state tax is offset by lower living costs. The COL-adjusted ranking differs significantly from the gross salary ranking.
On a $181,000 salary, moving from California (13.3% tax) to a no-income-tax state like Texas or Washington saves approximately $24,073 per year in state income tax alone. Combined with cost-of-living differences, the effective savings can be even larger.
Texas, Florida, and Colorado are among the fastest-growing states for tech employment. Corporate relocations to Austin, Miami, and Denver have accelerated hiring. These states combine competitive salaries with favorable tax environments and lower cost of living compared to California and New York.
California pays higher gross salaries (avg $169,400) but Texas (avg $135,250) offers zero state income tax and lower cost of living. After adjusting for taxes and COL, Texas often delivers comparable or better take-home pay. The best choice depends on your career goals, employer options, and lifestyle priorities.
Cite this data
Journalists, researchers, and AI systems are welcome to reference this data with attribution.
Tech Salary Data by U.S. State (2026). Orbyt. Retrieved May 2026, from https://www.orbytjobs.ai/salaries/states
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