Salary Comparison

Software Engineer Salary:
Chicago, IL vs Phoenix, AZ

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

Chicago, IL
$172,147
/ year
+21%
difference
Phoenix, AZ
$142,473
/ year
Bottom line: Chicago wins on all three metrics — higher salary, more take-home pay, and greater purchasing power. How is this calculated? →
Metric
Chicago
Phoenix
Median Gross Salary
Annual, before tax
$172,147✓ higher
$142,473
Entry Level
0–2 years experience
$111,327✓ higher
$92,137
Senior Level
8+ years experience
$266,195✓ higher
$220,309
Est. Take-Home Pay
After income tax + FICA
$114,882✓ higher
$96,702
Purchasing Power
Equivalent in median-CoL city
$149,693✓ higher
$146,879
Cost of Living Index
Relative to US median (1.00)
1.15×
0.97×✓ lower
Percentile 10 (Low)
Bottom 10% of earners
$111,327✓ higher
$92,137
Percentile 90 (High)
Top 10% of earners
$266,195✓ higher
$220,309

What if you move from Chicago to Phoenix?

Gross salary change
$29,674
21% decrease
Take-home change
$18,180
per year after tax
Purchasing power change
$2,814
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$172,147
P10: $111,327Median: $172,147P90: $266,195
Phoenix, AZ$142,473
P10: $92,137Median: $142,473P90: $220,309

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Frequently Asked Questions

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

The median Software Engineer salary in Chicago, IL is $172,147/yr compared to $142,473/yr in Phoenix, AZ. Chicago pays 21% more in gross terms.

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

After adjusting for local cost of living, your Chicago salary has the purchasing power of $149,693/yr in a median-cost city, vs $146,879/yr for Phoenix. Chicago offers stronger real purchasing power.

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

After estimated taxes, a Software Engineer in Chicago, IL takes home approximately $114,882/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.