Tech salaries across the U.S. have experienced notable shifts over the past year, influenced by several key factors, including (but not limited to) economic uncertainty and the competition for specialized talent among companies.
For tech pros everywhere, knowing average compensation levels in metro areas across the U.S. is crucial, especially given the rising cost of living. These levels can vary depending on regional economic conditions and the impact of remote work, among other things. With all that in mind, here’s how compensation breaks down in some of the largest tech hubs:
Top U.S. Metro Areas for Tech Salaries
The following table highlights the top six U.S. metro areas offering the highest average tech salaries in 2025, along with the percentage change from the previous year. This is based on information from the most recent Dice Tech Salary Report.
Now let’s break things down by location:
Silicon Valley
Despite a 7.3 percent decrease from the previous year, Silicon Valley maintains its position at the top of the list with an average tech salary of $131,332. This region, encompassing the Bay Area in Northern California, continues to be a global epicenter for technological innovation.
- It hosts the headquarters of numerous tech giants, including Apple, Google (Alphabet), Meta, and many others.
- A vibrant startup ecosystem thrives here, fostering cutting-edge developments across various tech domains.
- The high concentration of venture capital investment further fuels innovation and competition for talent.
- Educational institutions like Stanford and UC Berkeley contribute a steady stream of highly skilled graduates to the local workforce.
Baltimore/Washington D.C.
Experiencing a significant 5.8 percent increase, the Baltimore/Washington D.C. metro area boasts an average tech salary of $123,369. This growth can be attributed to several factors:
- A strong presence of federal government agencies and defense contractors, which heavily rely on tech expertise in cybersecurity, data analysis, and software development.
- The region's proximity to national research institutions and universities contributes to a demand for skilled tech professionals in research and development.
- A growing number of tech startups are also emerging in this area, diversifying the tech landscape beyond the public sector.
Los Angeles
With a 2.9 percent rise in average tech salaries, Los Angeles offers a competitive $120,435. The city's diverse economic base supports a burgeoning tech scene that extends beyond the entertainment industry:
- The entertainment and media sector continues to be a significant employer of tech professionals in areas like streaming, visual effects, and gaming.
- The aerospace and defense industries also maintain a strong demand for engineers and tech specialists.
- A growing number of startups in areas such as e-commerce, biotechnology, and social media are contributing to the region's tech growth.
New York
Despite a 4.7 percent decline in average tech salaries, New York City remains a major tech hub with a competitive average of $114,272. Its strong standing is supported by:
- A dominant financial sector that heavily invests in technology and employs a large number of tech professionals.
- A rapidly expanding startup ecosystem across various industries, including fintech, e-commerce, and media.
- The city's status as a global center for business and commerce attracts tech talent from around the world.
Chicago
Chicago's tech salaries saw a modest increase of 0.9 percent, reaching an average of $112,063. The city's appeal to tech professionals is multifaceted:
- Its central geographic location and status as a major transportation hub make it an attractive base for businesses and employees.
- A diversified economy, including finance, manufacturing, and logistics, provides a range of tech job opportunities.
- A growing startup scene, supported by local universities and incubators, is contributing to the city's tech vibrancy.
Dallas/Fort Worth
With a notable 4.7 percent uptick, the Dallas/Fort Worth metro area's average tech salary stands at $108,129. The region's growth in the tech sector is driven by:
- A favorable business climate with lower taxes and operating costs compared to coastal hubs.
- The presence of major corporations across various industries, including telecommunications, aerospace, and finance, all requiring tech talent.
- A growing influx of tech companies and professionals relocating to the area, attracted by affordability and opportunities.
Cost of Living Considerations
While high average salaries are an important factor, tech professionals must also carefully consider the cost of living in different metro areas.
- For example, while Silicon Valley offers the highest average salary, its exceptionally high cost of housing, transportation, and everyday expenses can significantly reduce the actual purchasing power of that income.
- Conversely, a slightly lower salary in a region with a significantly lower cost of living, such as Dallas/Fort Worth or Chicago, might translate to a higher quality of life and greater disposable income.
- Utilizing online cost of living calculators that compare expenses such as housing, food, transportation, healthcare, and taxes across different locations can provide a more accurate understanding of the financial realities of living in each area. This allows professionals to make informed decisions about where their salary will go the furthest.
Remote Work and Its Impact
The increasing prevalence of remote work has introduced a new dimension to the tech salary landscape.
- Remote work offers tech professionals greater flexibility in choosing their place of residence, potentially allowing them to live in areas with a lower cost of living while working for companies based in high-salary regions.
- However, some companies are adjusting salary levels based on an employee's geographic location, arguing that cost of living differences should be reflected in compensation.
- It is therefore crucial for tech professionals to thoroughly understand a company's remote work policies and how they might influence their overall compensation package. This includes inquiring about potential salary adjustments based on location and understanding the implications for benefits and taxes.
Conclusion
Navigating the tech job market in 2025 requires a holistic perspective that goes beyond simply looking at average salary figures.
- A comprehensive understanding of regional salary trends provides valuable insights into where tech skills are most highly compensated.
- Factoring in the cost of living is essential for accurately assessing the real value of a salary in different locations.
- Staying informed about the evolving landscape of remote work and its impact on compensation policies is crucial for professionals seeking flexibility and optimal financial outcomes.
By considering these interconnected factors, tech professionals can make strategic career decisions that align with their financial goals, lifestyle preferences, and long-term aspirations.