- 1.Texas has no state income tax—$150K Texas salary equals ~$165K California salary after tax
- 2.Austin is now a major tech hub with Google, Meta, Apple, Tesla, and Oracle offices paying Bay Area-competitive salaries
- 3.Dallas has strong enterprise tech presence (AT&T, Texas Instruments) with 10-15% lower salaries than Austin but also lower COL
- 4.Houston tech is growing, especially in energy tech and healthcare IT, with salaries 15-20% below Austin
- 5.Overall, Texas offers best take-home pay outside of pure Big Tech roles concentrated in Bay Area
Texas Tech Salaries by Metro Area
Texas has emerged as the top destination for tech companies relocating from California. Austin leads with highest salaries, but Dallas and Houston offer compelling value with lower cost of living and growing tech scenes.
Senior Software Engineer Salary by Texas Metro
| Metro Area | Base Salary | Big Tech TC | COL Index | Effective vs CA |
|---|---|---|---|---|
| Austin | $150,000 | $280K-$380K | 103 | +18% vs Bay Area |
| Dallas-Fort Worth | $135,000 | $220K-$300K | 97 | +25% vs Bay Area |
| Houston | $125,000 | $200K-$280K | 95 | +28% vs Bay Area |
| San Antonio | $115,000 | Limited Big Tech | 90 | +32% vs Bay Area |
Source: Glassdoor, BEA Regional Price Parities 2024
Source: Texas Comptroller
Austin: Silicon Hills
Austin has transformed into a major tech hub. Tesla HQ relocation, Oracle move, and major expansions from Google, Meta, Apple, and Amazon have made Austin competitive with coastal tech hubs. The startup scene is thriving.
Major Austin Tech Employers
| Company | Austin Employees | Senior SWE TC | Notes |
|---|---|---|---|
| Tesla | ~15,000 | $200K-$280K | Gigafactory + HQ |
| Apple | ~8,000 | $300K-$400K | Major engineering hub |
~5,000 | $320K-$420K | Cloud, Search teams | |
| Meta | ~3,000 | $320K-$400K | Growing presence |
| Oracle | ~8,000 | $240K-$340K | HQ relocation |
| Indeed | ~4,000 | $200K-$280K | Austin HQ |
| Dell Technologies | ~13,000 | $180K-$260K | Round Rock HQ |
Source: Levels.fyi, company reports 2024
Dallas-Fort Worth: Enterprise Tech
Dallas has traditionally been an enterprise tech hub with AT&T, Texas Instruments, and major corporate IT operations. The tech scene is diversifying with growing startup ecosystem and tech company expansions.
Major Dallas Tech Employers
| Company | DFW Employees | Senior SWE TC | Focus |
|---|---|---|---|
| AT&T | ~15,000 | $180K-$260K | Telecom, media |
| Texas Instruments | ~13,000 | $170K-$250K | Semiconductors |
| Toyota Connected | ~1,500 | $180K-$260K | Automotive tech |
| Capital One | ~5,000 | $200K-$280K | Fintech |
| Match Group | ~2,000 | $220K-$320K | Consumer apps |
Source: Glassdoor, company reports 2024
Houston: Energy Tech and Healthcare
Houston's tech scene is shaped by energy and healthcare industries. Strong opportunities in energy tech, oil & gas software, and the massive Texas Medical Center ecosystem. Lower salaries than Austin but also lowest cost of living.
Texas Tax Advantage Analysis
The no-state-tax advantage is substantial. Here's how it affects take-home pay compared to other tech hubs.
Take-Home Pay: Texas vs California
$150K salary comparison after state taxes
Texas ($150K, 0% state tax)
Median Annual Salary
California ($150K, 9.3% effective)
Median Annual Salary
Effective Take-Home: Texas vs Other States
| State | Gross Salary | State Tax | Take-Home | vs Texas |
|---|---|---|---|---|
| Texas | $150,000 | 0% | ~$112,000 | — |
| California | $150,000 | 9.3% | ~$98,000 | -$14K |
| New York | $150,000 | 6.9% | ~$102,000 | -$10K |
| Washington | $150,000 | 0% | ~$112,000 | Even |
Source: Tax calculations (simplified, single filer)
Top Texas Tech Employers
Texas hosts a mix of relocated California companies, traditional enterprise tech, and homegrown startups.
Salary data from crowdsourced databases, tax calculations from state tax brackets.
Frequently Asked Questions
Related Articles
Data Sources
Salary reports by metro area
Tech company compensation
Tax information
Taylor Rupe
Full-Stack Developer (B.S. Computer Science, B.A. Psychology)
Taylor combines formal training in computer science with a background in human behavior to evaluate complex search, AI, and data-driven topics. His technical review ensures each article reflects current best practices in semantic search, AI systems, and web technology.