Salary Comparison

Software Engineer Salary:
New York, NY vs Chicago, IL

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

New York, NY
$208,353
/ year
+21%
difference
Chicago, IL
$172,147
/ year
Bottom line: Chicago offers better purchasing power despite New York paying more gross. How is this calculated? →
Metric
New York
Chicago
Median Gross Salary
Annual, before tax
$208,353✓ higher
$172,147
Entry Level
0–2 years experience
$134,741✓ higher
$111,327
Senior Level
8+ years experience
$322,181✓ higher
$266,195
Est. Take-Home Pay
After income tax + FICA
$139,502✓ higher
$114,882
Purchasing Power
Equivalent in median-CoL city
$143,692
$149,693✓ higher
Cost of Living Index
Relative to US median (1.00)
1.45×
1.15×✓ lower
Percentile 10 (Low)
Bottom 10% of earners
$134,741✓ higher
$111,327
Percentile 90 (High)
Top 10% of earners
$322,181✓ higher
$266,195

What if you move from New York to Chicago?

Gross salary change
$36,206
21% decrease
Take-home change
$24,620
per year after tax
Purchasing power change
+$6,001
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

New York, NY$208,353
P10: $134,741Median: $208,353P90: $322,181
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 New York or Chicago?

The median Software Engineer salary in New York, NY is $208,353/yr compared to $172,147/yr in Chicago, IL. New York pays 21% more in gross terms.

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

After adjusting for local cost of living, your New York salary has the purchasing power of $143,692/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 New York vs Chicago?

After estimated taxes, a Software Engineer in New York, NY takes home approximately $139,502/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.