Real Salary Index

Best states for software developers

The best states for software developers start with the national median wage of $124,040. Once federal tax, state income tax and local housing costs are applied, that salary is worth $221,612 in Puerto Rico and only $84,474 in California.

WeakestStrongest
100.0
Excellent
Puerto Rico — top ranked

After-tax income $103,210 · cost index 0.47

National median wage

$124,040

Best state

Puerto Rico

Weakest state

California

Real pay spread

$137,138

Federal effective rate

14.7%

States compared

52

Ranked

Real purchasing power for software developers, by state

Median wage after federal and state income tax, divided by a local cost-of-living index built from rent and home values.

  1. 1
    Puerto Rico0.0% state tax$221,612
  2. 2
    South Dakota0.0% state tax$116,508
  3. 3
    North Dakota1.9% state tax$113,367
  4. 4
    Arkansas3.9% state tax$113,290
  5. 5
    Louisiana3.0% state tax$112,894
  6. 6
    Tennessee0.0% state tax$112,344
  7. 7
    Iowa3.8% state tax$112,363
  8. 8
    Mississippi4.7% state tax$112,156
  9. 9
    Wyoming0.0% state tax$111,348
  10. 10
    Oklahoma4.8% state tax$110,951
  11. 11
    Alabama4.7% state tax$109,795
  12. 12
    Kentucky4.0% state tax$109,107
  13. 13
    West Virginia4.8% state tax$108,806
  14. 14
    Nebraska5.2% state tax$107,564
  15. 15
    Missouri4.8% state tax$107,251
  16. 16
    Kansas5.6% state tax$107,095
  17. 17
    Ohio3.5% state tax$106,684
  18. 18
    Indiana3.0% state tax$106,633
  19. 19
    Texas0.0% state tax$106,340
  20. 20
    New Mexico4.9% state tax$105,497
  21. 21
    North Carolina4.5% state tax$103,646
  22. 22
    Nevada0.0% state tax$103,232
  23. 23
    Wisconsin5.3% state tax$102,872
  24. 24
    Pennsylvania3.1% state tax$101,971
  25. 25
    Michigan4.3% state tax$101,923
  26. 26
    South Carolina6.4% state tax$101,831
  27. 27
    Montana5.9% state tax$101,507
  28. 28
    Idaho5.8% state tax$100,731
  29. 29
    Alaska0.0% state tax$100,831
  30. 30
    Georgia5.4% state tax$100,410
  31. 31
    Florida0.0% state tax$99,803
  32. 32
    Arizona2.5% state tax$99,511
  33. 33
    New Hampshire0.0% state tax$99,083
  34. 34
    Utah4.5% state tax$98,827
  35. 35
    Maine7.2% state tax$97,433
  36. 36
    Vermont6.6% state tax$97,209
  37. 37
    Illinois5.0% state tax$97,261
  38. 38
    Delaware5.5% state tax$96,680
  39. 39
    Washington0.0% state tax$96,446
  40. 40
    Virginia5.0% state tax$96,099
  41. 41
    Minnesota7.0% state tax$96,003
  42. 42
    Rhode Island4.8% state tax$95,290
  43. 43
    Colorado4.4% state tax$94,987
  44. 44
    Connecticut5.5% state tax$93,191
  45. 45
    Maryland5.3% state tax$92,281
  46. 46
    Massachusetts5.0% state tax$91,871
  47. 47
    Oregon8.8% state tax$89,611
  48. 48
    New York6.0% state tax$88,908
  49. 49
    New Jersey5.5% state tax$88,708
  50. 50
    District of Columbia7.0% state tax$86,205
  51. 51
    Hawaii7.9% state tax$85,175
  52. 52
    California8.0% state tax$84,474

Wages are national medians: this shows where the same salary goes furthest, not where employers pay more.

How the Real Salary Index works

We start from the BLS national median wage, subtract an effective federal income tax estimate and the state's income tax rate, then divide the result by a cost-of-living index built from state median gross rent and median home value against the national average.

The output is the salary's real purchasing power, and the 0–100 RSI score simply ranks every state between the weakest and strongest result for that occupation.

Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (national median annual wages, May 2024); U.S. Census Bureau, American Community Survey 5-year estimates (state cost-of-living proxy); State income tax parameters, 2026 tax year.

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