Salary Comparison

Software Engineer Salary:
Austin, TX vs Phoenix, AZ

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

Austin, TX
$159,836
/ year
+12%
difference
Phoenix, AZ
$142,473
/ year
Bottom line: Phoenix offers better purchasing power despite Austin paying more gross. How is this calculated? โ†’
Metric
Austin
Phoenix
Median Gross Salary
Annual, before tax
$159,836โœ“ higher
$142,473
Entry Level
0โ€“2 years experience
$103,365โœ“ higher
$92,137
Senior Level
8+ years experience
$247,158โœ“ higher
$220,309
Est. Take-Home Pay
After income tax + FICA
$107,181โœ“ higher
$96,702
Purchasing Power
Equivalent in median-CoL city
$142,711
$146,879โœ“ higher
Cost of Living Index
Relative to US median (1.00)
1.12ร—
0.97ร—โœ“ lower
Percentile 10 (Low)
Bottom 10% of earners
$103,365โœ“ higher
$92,137
Percentile 90 (High)
Top 10% of earners
$247,158โœ“ higher
$220,309

What if you move from Austin to Phoenix?

Gross salary change
$17,363
12% decrease
Take-home change
$10,479
per year after tax
Purchasing power change
+$4,168
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 1.00ร—). Full methodology โ†’

Salary Range Comparison

Austin, TX$159,836
P10: $103,365Median: $159,836P90: $247,158
Phoenix, AZ$142,473
P10: $92,137Median: $142,473P90: $220,309

Frequently Asked Questions

โ–ถDoes a Software Engineer earn more in Austin or Phoenix?

The median Software Engineer salary in Austin, TX is $159,836/yr compared to $142,473/yr in Phoenix, AZ. Austin pays 12% more in gross terms.

โ–ถIs a Software Engineer salary worth more in Austin or Phoenix 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 $146,879/yr for Phoenix. Phoenix offers stronger real purchasing power.

โ–ถWhat is the take-home pay for a Software Engineer in Austin vs Phoenix?

After estimated taxes, a Software Engineer in Austin, TX takes home approximately $107,181/yr, vs $96,702/yr in Phoenix, AZ. These are estimates based on standard federal tax rates and do not account for state/local taxes or deductions.