Salary Comparison

Software Engineer Salary:
Austin, TX vs Chicago, IL

Side-by-side gross salary, after-tax take-home pay, and purchasing power comparison. Updated June 2026.

Austin, TX
$159,836
/ year
-7%
difference
Chicago, IL
$172,147
/ year
Bottom line: Chicago wins on all three metrics — higher salary, more take-home pay, and greater purchasing power. How is this calculated? →
Metric
Austin
Chicago
Median Gross Salary
Annual, before tax
$159,836
$172,147✓ higher
Entry Level
0–2 years experience
$103,365
$111,327✓ higher
Senior Level
8+ years experience
$247,158
$266,195✓ higher
Est. Take-Home Pay
After income tax + FICA
$107,181
$114,882✓ higher
Purchasing Power
Equivalent in median-CoL city
$142,711
$149,693✓ higher
Cost of Living Index
Relative to US median (1.00)
1.12×✓ lower
1.15×
Percentile 10 (Low)
Bottom 10% of earners
$103,365
$111,327✓ higher
Percentile 90 (High)
Top 10% of earners
$247,158
$266,195✓ higher

What if you move from Austin to Chicago?

Gross salary change
+$12,311
7% increase
Take-home change
+$7,701
per year after tax
Purchasing power change
+$6,982
equivalent real income

Take-home pay is estimated using 2024 US federal tax brackets (single filer) + 7.65% FICA, or a blended international effective rate. Purchasing power converts gross salary to an equivalent in a US median cost-of-living city (index 1.00×). Full methodology →

Salary Range Comparison

Austin, TX$159,836
P10: $103,365Median: $159,836P90: $247,158
Chicago, IL$172,147
P10: $111,327Median: $172,147P90: $266,195

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Frequently Asked Questions

▶Does a Software Engineer earn more in Austin or Chicago?

The median Software Engineer salary in Austin, TX is $159,836/yr compared to $172,147/yr in Chicago, IL. Chicago pays 7% more in gross terms.

▶Is a Software Engineer salary worth more in Austin or Chicago after cost of living?

After adjusting for local cost of living, your Austin salary has the purchasing power of $142,711/yr in a median-cost city, vs $149,693/yr for Chicago. Chicago offers stronger real purchasing power.

▶What is the take-home pay for a Software Engineer in Austin vs Chicago?

After estimated taxes, a Software Engineer in Austin, TX takes home approximately $107,181/yr, vs $114,882/yr in Chicago, IL. These are estimates based on standard federal tax rates and do not account for state/local taxes or deductions.