Your expected salary as a software engineer is determined by several factors, including experience level and location. When choosing a specific geographic area, there are additional aspects to consider, such as the quality of life, industry standards, and the cost of living.
In this article, we’ll be going over the average salaries for software engineers at different experience levels in New York City and how that measures up to the bigger picture of living in NYC.
Salaries
According to Research and Markets, the software industry in the U.S. was estimated at $194.9 billion in 2020. This is expected to reach a value of $271.4 billion by 2025. The sheer size of the national market and anticipated levels of growth make software engineering one of the most high-paying jobs in the U.S.
Similar to many other career paths in the tech industry, experience is the primary factor in determining your average earnings in the City of New York.
Entry-Level Software Engineer Salaries
An entry-level software engineer, also referred to as a junior engineer, is someone with zero to five years of experience. They work alongside mid-level and senior-level engineers during the process of designing, developing, testing, and updating software applications and programs.
The median salary of an entry-level software engineer in New York is around $145,000 annually. But depending on other factors, such as skills and employer company, as an entry-level engineer, you can expect to earn as little as $110,000 or as much as 212,000, according to levels.fyi.
Senior-Level Software Engineer Salaries
As a senior-level software engineer, you’ll usually work alongside a team of software engineers in the process of developing information systems for websites and applications. You’re considered a senior in your profession if you have anywhere from 8 to 10 years of industry experience in your field.
In New York, the median salary of a senior-level software engineer is around $218,000. However, the top 10% of engineers earn as much as $372,000 per year, while the lowest-earning 25% make $167,000. This is according to levels.fyi’s data on salaries in NYC.
Software Engineering Manager Salaries
A software engineering manager leads a team of software engineers. As a manager, you're responsible for the smooth operation of your team. You help allocate work and remove blockers. You keep projects on track and provide employees with growth opportunities to advance in their career. Engineering managers will typically have several prior years of experience as an engineer.
The median salary of a software engineering manager in New York is $280,000. Depending on experience and special skills, you can expect to earn as little as $210,000 or as much as $550,000, according to levels.fyi.
Cost of Living in New York City
New York is one of the most expensive cities to live in. This is another important factor that determines the range of salaries in the tech industry of New York.
The cost of living in the area of New York City is estimated to be around 128% higher than the national average. Housing alone is four times more costly than in other areas of the U.S., with a median rent of $4,500 for a one-bedroom apartment.
Other expenses are also considerably higher, with food and grocery standing at a 35% increase from the national average and energy bills costing an average of $180 per month.
This hike in prices due to the high demand is generally made up for by the high salaries of the residents and a booming local economy. According to the U.S. Census Bureau, the median household income in New York City was just under $71,000 in 2021.
Companies With Software Engineering Teams Hiring in New York City
CompTIA ranked New York as the 16th best city for tech and IT jobs. It estimates that by 2026, there will be around 366,000 jobs in the technology sector in the city alone.
This is because New York has long been attracting a number of tech giants plus a healthy supply of tech startups. Whether you’re looking to participate in a new and emerging company or work with an industry staple, New York is one of the best cities for you.
Google’s second-largest office is based in New York and spans two campuses in Chelsea and Hudson Square. As of 2023, the company has 12,000 employees in its New York offices, with plans to welcome an additional 2,000 over the course of the next few years.
Gaining the opportunity to work as a software engineer at Google at any experience level offers a lot of room for growth. Also, the average Google software engineer salary in New York is just under $245,000. Not to mention, you'll get the chance to work on the latest projects and try out cutting-edge technology and tools.
Two Sigma
Based in New York, Two Sigma is a software-based financial investment company with over 1,600 employees. 60% of its employees come from a nonfinancial background, further emphasizing the company’s focus on technological innovation first.
In addition to being a high-paying and valuable learning opportunity, working at Two Sigma comes with a number of added benefits. It has a tuition reimbursement program, training sponsorships, generous paid leave, and unlimited sick days.
Jane Street
Jane Street is another financial technology company that started out as a small group of traders in New York. It’s heavily reliant on technology and software development and innovation, with more than 2,000 employees in its global and local offices.
The average Jane Street software engineer salary is around $137,000 per year. In addition, the company’s work environment is exciting and challenging, allowing you to evolve your technical skills alongside other aspiring engineers.
Square
Square offers payment processing services to small businesses. For ambitious software engineers and software engineering managers, Square makes for the perfect teamwork environment thanks to a company culture focused on flexibility, innovation, and creativity.
Bank of America
Bank of America is one of the U.S.’s largest providers of banking and financial services to individuals and corporations. While it's based in North Carolina, its New York offices have over 13,000 employees that come from a variety of backgrounds, ranging from finance to software development and engineering.
The bank’s wide array of financial services relies heavily on technological solutions to make them available to their customers and clients. Working with Bank of America as a software engineer would allow you the opportunity to develop your skills and expertise in creating software solutions for the financial industry.
Goldman Sachs
Goldman Sachs is an investment banking firm based in New York City. With offices all over the U.S. and the world, the company has over 40,000 employees with skills ranging from investment and finance to technology and software engineering.
The company is heralded as one of the world’s best workplaces for technical and forward-thinking individuals, allowing them the opportunity to work on the latest software projects in the finance sector. Furthermore, salaries for software engineers at Goldman Sachs range from $77,000 to $238,000, depending on skills and experience.
Quality of Life in New York City
Arguably, one of the most important factors when it comes to choosing the location of your long-term career is the quality of life. Of course, what makes a city great differs depending on your preferred leisure activities and whether you have a family or not.
New York is one of the world’s most diverse cities, not only in demographics but also in the types and quality of cultural activities it offers its residents, from Broadway shows to Michelin-star restaurants and a booming nightlife.
The city is home to several world-class museums, such as the Metropolitan Museum of Art, the Museum of Modern Art, and the American Museum of Natural History. This is perfect for a family with small children who could greatly benefit from the educational events offered by the many museums and cultural centers year-round.
Another major attraction in the city is Broadway, where state-of-the-art shows are performed by world-renowned actors, actresses, and performers. Not to mention, the theater is almost 100 years old, contributing to the rich history of the New York.
As for more traditional entertainment options, New York City’s nightlife is vivid and widely popular among its residents and visitors. You’ll have access to a wide variety of restaurants and cuisines from all over the world and different U.S. regions, in addition to bars, boutique restaurants and cafes, music venues, and clubs.
On a final note, New York also has one of the country’s best public transportation systems, from its extensive subway system to its iconic taxis and buses, making it ideal for young professionals who don’t yet own a car.
Knowing Your Options
As a software engineer, you’re currently one of the most sought-after and in-demand professionals in a number of tech-focused cities both in the U.S. and abroad. This affords you the option to pick and choose the best city to live in while you progress in your career as a software engineer.
