What Does a Software Developer Make in California vs. Texas?

The median annual wage for software developers in California is $170,910, while in Texas it is $130,500, according to the most recent Bureau of Labor Statistics OEWS data. That is a $40,410 gap between two of the largest tech workforces in the country. The national median sits at $133,080. Software developers (sometimes called software engineers, full stack developers, application developers, or DevOps engineers) make up more than 1.6 million workers nationally, with California and Texas employing over 444,000 combined.

What Does "Median Annual Wage" Mean?

The median annual wage is the midpoint of all reported salaries for a given role in a given location. Half of workers earn more, and half earn less. BLS calculates this figure from employer-reported surveys covering more than 1.1 million establishments nationwide.

For software developers, the median is a more reliable benchmark than the average because a small number of very high earners at top tech companies can skew the mean significantly higher than what most developers actually earn.

• California median: $170,910 (28.4% above national median)
• Texas median: $130,500 (1.9% below national median)
• National median: $133,080
• Combined employment: 444,090 software developers across both states

Why the California vs. Texas Pay Gap Matters

California employs 292,630 software developers and Texas employs 151,460, per BLS. These two states represent more than a quarter of all software development jobs in the country. The $40,410 pay gap between them shapes recruiting strategies, remote work policies, and compensation budgets for every company hiring technical talent.

For a full breakdown of software developer pay across all 50 states, download the free state salary report.

California is one of 15 states with pay transparency laws, requiring employers to disclose salary ranges in job postings. Texas has no such requirement. With remote work making cross-state hiring more common, employers need to decide whether to pay based on location, role, or a hybrid approach.

For individual developers, the gap raises questions about the real value of a California offer versus a Texas one once cost of living enters the equation. For employers, it affects competitiveness in a talent market where developers have more location flexibility than almost any other role.

What Drives the Pay Gap

California's tech industry concentration, particularly in the San Francisco Bay Area, Seattle corridor, and Los Angeles metro, creates intense competition for developer talent. Companies like Apple, Google, Meta, and hundreds of well-funded startups drive compensation higher. California's high cost of living and state income tax further push base salaries upward.

Texas has rapidly grown as a tech hub, especially in Austin, Dallas, and Houston. Major employers including Dell, Oracle, Tesla, and a growing startup ecosystem have expanded hiring. But the larger available labor pool and lower cost of living moderate wage pressure compared to California.

The Full Salary Distribution

Looking beyond the median tells a more complete story. The national 25th percentile for software developers is $103,050, while the 75th percentile reaches $169,000. In California, even entry-level developer positions typically exceed the national median, while in Texas, mid-career developers sit near the national midpoint.

The width of the salary band in software development is among the broadest of any professional role. Specialization (machine learning, security, embedded systems), years of experience, and company size all create significant variation within each state's numbers.

Cost of Living Context

Raw salary numbers do not account for purchasing power. California's cost of living, particularly in the Bay Area, is among the highest in the nation. Housing alone can consume 40-50% of gross income in San Francisco or San Jose. Texas, with no state income tax and significantly lower housing costs, offers more disposable income per dollar earned.

A developer earning $130,500 in Austin may retain more after taxes and housing than one earning $170,910 in San Jose. Employers should present this context when extending offers, especially for roles that can be done remotely.

Applying This Data to Compensation Decisions

For employers hiring software developers across both states, the BLS data provides a defensible baseline for setting state-specific pay ranges. Rather than applying a single national rate, organizations can anchor their ranges to the state median and adjust based on their compensation philosophy.

A practical approach: set the target at the state 50th percentile and evaluate each employee's comp ratio (current salary divided by the target). A comp ratio below 0.95 signals a potential retention risk, particularly for software developers who tend to have high market mobility. A comp ratio above 1.10 may indicate compression or a need to re-level.

How What It Pays™ Supports Salary Benchmarking

What It Pays™ is built on government-verified BLS OEWS data as the foundation, covering over 800 occupations across all 50 states. The platform layers in compensation analytics, comp ratio calculations, and retention risk indicators so employers can move from raw data to informed action. As the platform grows, anonymized employer-reported salary data will be layered on top of the BLS foundation to provide real-time compensation signals alongside the government-verified benchmarks.

Explore the platform at whatitpays.com.

Frequently Asked Questions

What is the average salary for a software developer in California?

The average (mean) annual wage for software developers in California is approximately $185,750, while the median is $170,910 per BLS OEWS data. The median is generally a more accurate representation of typical earnings because it is not skewed by outlier compensation packages at major tech companies.

How much do software developers make in Texas compared to the national average?

Software developers in Texas earn a median of $130,500, which is about 1.9% below the national median of $133,080. Texas is the second-largest employer of software developers in the country with 151,460 developers.

Why do California developers make more than Texas developers?

California's tech industry concentration (Bay Area, LA, San Diego) creates intense demand for developer talent. Combined with high cost of living, state income tax, and competition from major tech employers, base salaries are pushed significantly higher. Texas has grown rapidly as a tech hub but benefits from lower cost of living and a broader labor supply.

Does cost of living offset the pay difference between California and Texas for developers?

Significantly. California's cost of living, particularly housing in the Bay Area, is among the nation's highest. Texas has no state income tax and substantially lower housing costs. After adjusting for taxes and living expenses, a $130,500 salary in Austin may provide comparable or greater disposable income than $170,910 in San Francisco.

What is a comp ratio and how does it apply to software developer salaries?

A comp ratio is calculated by dividing an employee's current salary by the market median (or your organization's target percentile). For example, a Texas developer earning $120,000 against a state median of $130,500 has a comp ratio of 0.92, which signals the employee is paid below market and may be at elevated retention risk.

Is Texas or California better for software developer careers?

It depends on priorities. California offers the highest nominal pay and proximity to major tech headquarters, but comes with high cost of living and state income tax. Texas offers strong job growth, no state income tax, and lower cost of living, particularly in Austin and Dallas. Both states have robust demand for software development talent.

Where can I find BLS salary data for software developers in other states?

The Bureau of Labor Statistics publishes state-by-state wage data through its Occupational Employment and Wage Statistics (OEWS) program at bls.gov/oes. What It Pays™ organizes this data by role, state, and percentile to make benchmarking faster for both individuals and employers.

Dr. Bruce Brown is the founder of CompRatio LLC and the creator of What It Pays™. He holds a PhD in Human Resources and the SHRM-SCP certification, and works as a practicing HR professional.

Ready to benchmark developer salaries for your company? Explore the platform at whatitpays.com.

This article is intended for educational and informational purposes only and does not constitute legal advice. Compensation practices vary by organization, jurisdiction, and circumstance. Nothing in this article should be relied upon as a substitute for consultation with a qualified HR professional or employment attorney regarding your specific situation. What It Pays™ and CompRatio LLC are not law firms and do not provide legal services