Salary Comparison

Software Engineer Salary:
Chicago, IL vs Denver, CO

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

Chicago, IL
$160,620
/ year
-10%
difference
Denver, CO
$178,892
/ year
Bottom line: Denver wins on all three metrics — higher salary, more take-home pay, and greater purchasing power. How is this calculated? →
Metric
Chicago
Denver
Median Gross Salary
Annual, before tax
$160,620
$178,892✓ higher
Entry Level
0–2 years experience
$103,872
$115,689✓ higher
Senior Level
8+ years experience
$248,370
$276,625✓ higher
Est. Take-Home Pay
After income tax + FICA
$107,654
$119,468✓ higher
Purchasing Power
Equivalent in median-CoL city
$139,670
$156,923✓ higher
Cost of Living Index
Relative to US median (1.00)
1.15×
1.14×✓ lower
Percentile 10 (Low)
Bottom 10% of earners
$103,872
$115,689✓ higher
Percentile 90 (High)
Top 10% of earners
$248,370
$276,625✓ higher

What if you move from Chicago to Denver?

Gross salary change
+$18,272
10% increase
Take-home change
+$11,814
per year after tax
Purchasing power change
+$17,253
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

Chicago, IL$160,620
P10: $103,872Median: $160,620P90: $248,370
Denver, CO$178,892
P10: $115,689Median: $178,892P90: $276,625

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Frequently Asked Questions

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

The median Software Engineer salary in Chicago, IL is $160,620/yr compared to $178,892/yr in Denver, CO. Denver pays 10% more in gross terms.

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

After adjusting for local cost of living, your Chicago salary has the purchasing power of $139,670/yr in a median-cost city, vs $156,923/yr for Denver. Denver offers stronger real purchasing power.

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

After estimated taxes, a Software Engineer in Chicago, IL takes home approximately $107,654/yr, vs $119,468/yr in Denver, CO. These are estimates based on standard federal tax rates and do not account for state/local taxes or deductions.