The Most Lucrative States and Cities for U.S. Developers

Skilled software developers are in high demand, and it will only continue to rise over the years as more businesses adapt to digitalization. But let’s be honest, compensation can vary significantly based on where you’re located and where your company is headquartered.

From tech hubs to innovation centers, opportunities and salaries vary widely across the United States. In this article, we’ll delve into the most lucrative states and cities for US developers, based on data published by the US Bureau of Labor Statistics.

The Highest Paying States for Software Developers

While there are a lot of opportunities for developers, you should check which cities offer the salary you prefer. Some states offer higher paychecks thanks to thriving tech businesses and a competitive job market.

In this list, we break down the highest-paying states for software developers. Of course compensation in the U.S. is individualistic. It varies based on where you are and where your company is located. That said, finding work in one of these states gives you high odds of getting a great salary.

California

Home to Silicon Valley and some of the world’s largest tech companies, California ranks at the top of the list. Companies like Google, Apple, and Meta drive strong competition for talent along with lots of startups. Annual mean wage for developers stands at $182,570. Cost of living can be quite high, but many developers still choose California because there are a lot of opportunities here and potential for career growth.

Washington

Washington is one of the most lucrative states for software developers. It’s thanks to tech giants like Microsoft and Amazon, and other emerging startups. While cost of living can be steep, the strong job market and high demand for skilled talent still make it the top choice for developers looking for a high salary, especially with an annual mean wage of $152,010. Leading the Pacific Northwest in high-paying opportunities, Washington offers developers an array of problems to solve, from software to aerospace.

New York

The city that never sleeps, New York, comes in third on the list. It is popular due to its fast-paced lifestyle and also a growing number of business-savvy entrepreneurs. You can find a lot of opportunities here ranging from fintech, media, healthcare tech, and project management software. It also has a booming startup scene with many of its tech leaders offering generous salaries for skilled devs. Even with high cost of living, software developers choose to work here with an annual mean wage of $141,130.

Massachusetts

Known for its rich history and educational institutions, Massachusetts has also shown its steady growth as a key hub for tech startups. Boston and surrounding areas, in particular, are where a lot of biotech firms, research institutions, and software companies are. With a strong demand for skilled devs, you can get a competitive salary with an annual mean wage of $133,750. You also have a lot of opportunities to work on cutting-edge technology with access to world-class universities like MIT and Harvard. ‍

Rhode Island

It might be smaller in size compared to other states in this list, but Rhode Island is still as mighty. It has a healthy tech scene with great quality of living, offering developers high paychecks with an annual average of $147,030. Providence itself has seen an increasing number of startups and tech-based industries. Due to its lower cost of living and its proximity to Boston, Rhode Island is certainly a top choice for developers.

The Top 5 Metropolitan Areas for Software Developers

Let’s zoom in another click, and find out which metro areas offer the highest average salary especially for dev leaderships.

The top paying metropolitan markets will come as no surprise to even the most junior developer. They are tech and innovation hotspots, but places with an incredibly high cost of living as well. So while your dollar doesn’t stretch as far if you’re residing in these places, you can still earn a high wage if your company’s headquarters are in one of these cities.

San Jose-Sunnyvale-Santa Clara, CA

The heart of Silicon Valley, this metro area, boasts an annual mean wage of $234,540. There’s an impressive concentration of high-tech engineering, computer, and microprocessor companies here. Though much of this earning potential is wiped out by cost-of-living, you’ve still got an average chance of being one of the top earners in the world simply by living and working in Silicon Valley.

San Francisco-Oakland-Hayward, CA

As part of the larger Silicon Valley, the Bay Area has a yearly average salary of $181,620. Like San Jose, the region is a hotbed of innovation and tech giants such as Salesforce, Intel, and Elon’s company, X.

Seattle-Tacoma-Bellevue, WA

Home to Amazon and Microsoft, this metro region is a close second at $155,680 as an annual mean wage. The technology sector here is a large part of overall economy, offering many jobs for developers and their families. The area also has a booming ecosystem of AI startups.

Los Angeles-Long Beach-Anaheim, CA

The home of Hollywood and creativity brings with it ample opportunities for software developers. On average, it is possible to earn $149,410 as a software developer in the Los Angeles area.

New York-Newark-Jersey City, NY-NJ-PA

The city of New York and its metropolitan region offer a broad range of possibilities across various industries, with an average annual salary of $142,830. New York's technology industry is booming, with growth towards fintech and healthcare. ‍

The statistics leave no doubt: U.S. developers have ample opportunities, especially in states and cities with a high concentration of the technology industry. All the same, you should also take into account cost of living and quality of life. High pay usually goes with higher living expenses, especially in such states as New York and California.

The terrain for developers throughout the U.S. is thrilling. If you are attracted to the innovation capitals of Silicon Valley or Seattle, the vibrant diversity of New York, or the historic beauty of Massachusetts, it is evident that developers have huge potential to discover profitable opportunities in America.

Don't forget, though, it's not all about the pay, but also about experience, work-life balance, and learning and growth opportunities. But salary is certainly the primary incentive when deciding where you'd like to apply your programming skills. To earn the maximum base pay, look to these places.