Tech Worker Salary Reality: What the Numbers Look Like City by City
7 min read
Data: 2026-Q2 · BLS · HUD · KFF
Technology sector wages are among the highest of any occupation group in the country — but so are the housing costs in the cities where technology employment is most concentrated. The relationship between tech salaries and local costs is not uniform across metros. In some markets, tech wages produce genuinely spacious financial conditions. In others, even six-figure tech salaries are absorbed by housing costs that leave surprisingly little flexibility. This guide examines that relationship across major metros using public data.
Where Tech Salaries Are Highest
BLS 2025 data on computer and mathematical occupations shows the highest median wages in San Jose ($186,320), San Francisco ($167,770), and Seattle ($156,000). These figures reflect the concentration of major technology employers — Apple, Google, Meta, Amazon, Microsoft, and thousands of venture-backed companies. The wage premium is real and substantial. Source: Bureau of Labor Statistics OES 2025.
Where the Math Works and Doesn't
A $186,320 median tech wage in San Jose compared to HUD FY2026 2BR FMR of $3,483 — housing takes a smaller share of income than at lower income levels, producing more comfortable conditions for senior tech workers. But at entry and mid-level tech salaries — often $80,000–$130,000 — the same market produces meaningfully more pressure. The HUD FMR shows a 1BR at $2,982 in San Jose; a tech worker earning $95,000 gross and paying that rent is committing roughly 37% of gross income to housing alone. Source: BLS OES 2025, HUD FY2026.
The Remote Work Equation for Tech Workers
Remote work has created significant optionality for tech workers. A tech worker earning San Francisco or Seattle wages while living in Raleigh (1BR FMR: $1,596) or Kansas City (1BR FMR: $1,197) captures the wage premium of the high-cost market without the full housing cost. For a tech worker earning $150,000 in a remote role, the difference between living in San Francisco and Raleigh is roughly $1,381 per month in 1BR housing costs alone — over $16,000 annually. Source: HUD FY2026 FMR Schedule.
Mid-Market Tech Metros
Several metros have developed meaningful technology employment ecosystems at lower wage levels than the coastal giants but also at lower costs. Austin (BLS 2025 computer/math median: $114,350; HUD FY2026 1BR FMR: $1,562), Denver ($120,060; $1,754), and Raleigh ($107,760; $1,596) represent this profile. These markets attract tech workers seeking a balance between career opportunity and cost of living. Source: BLS OES 2025, HUD FY2026.
What Often Gets Overlooked
Tech salary discussions often focus on base salary while overlooking equity compensation, signing bonuses, and employer benefits — which can be significant at large technology companies. Conversely, the tax implications of equity compensation (RSUs, stock options) can be substantial in high-tax states. A tech worker at a major company in California may have significantly higher gross total compensation than their salary suggests — and significantly higher tax obligations. Source: Tax Foundation 2025.
Key terms
Computer and mathematical occupations
BLS occupation group covering software developers, data scientists, computer systems analysts, and related roles. The occupation group with the highest median wages of any major BLS category in most major metros.
RSU (Restricted Stock Unit)
A form of equity compensation that vests over time. A significant component of total compensation at many major technology companies.
FAQ
Frequently Asked Questions
Where do tech salaries go furthest? +
In terms of purchasing power relative to housing costs, tech salaries typically go furthest in lower-cost metros with no state income tax — cities like Houston, San Antonio, Jacksonville, and Kansas City, where BLS tech occupation wages are lower but housing costs are substantially lower and no state income tax applies. For remote tech workers earning coastal wages, the math shifts further in favor of these markets. Source: BLS OES 2025, HUD FY2026, Tax Foundation 2025.
Is it worth taking a salary cut to live in a cheaper city as a tech worker? +
The answer depends on the size of the salary reduction and the housing cost difference. A 15% salary reduction paired with a 40% reduction in housing costs may produce better financial outcomes than the higher salary. Running the actual numbers using HUD FMR data, state tax rates, and BLS wage benchmarks for both markets is more productive than generalizations. Source: HUD FY2026, Tax Foundation 2025, BLS OES 2025.
What are the best mid-market cities for tech workers? +
Austin, Denver, Raleigh, and Salt Lake City have the most established mid-market technology ecosystems among the metros tracked here — with BLS computer/math occupation medians in the $107,000–$120,000 range. These markets offer career options beyond purely remote roles, at costs meaningfully below the coastal tech hubs. Source: BLS OES 2025.