The U.S. States with the Top Tech Salaries in 2021
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The U.S. States with the Top Tech Salaries in 2021

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Average Tech Salary Across the US Best Paying States

The U.S. States with the Top Tech Salaries in 2021

In 2020, despite the economic turmoil caused by the global pandemic, America’s tech sector experienced rapid growth. Last year, the total number of U.S. tech jobs grew by 60,000.

Because of this demand, U.S. employers are willing to pay for the right talent—on average, tech workers in the U.S. earn about 61% more than the average salary. But some tech workers make more than others, depending on where they live.

This graphic by business.org uses data from the Bureau of Labor Statistics (BLS) to highlight the average annual tech salaries in each state, compared to the average salary of other occupations. We’ll also touch on the top-paying metro areas, and what type of tech jobs offer the highest compensation across the country.

Average U.S. Tech Salaries by State

Perhaps unsurprisingly, Washington and California have the highest average salaries, largely because of the high job density in those areas.

However, when it comes to the difference in tech salary versus average salary, Alabama takes the top spot—on average, tech jobs pay 85% more than other occupations in that state.

RankStateAverage hourly wage for tech workersAverage salary for tech workers% more that tech workers earn than all occupations
1Alabama$41.69$86,72085%
2Washington$58.96$122,64083%
3North Carolina$44.19$91,92080%
4Texas$45.04$93,69079%
5Virginia$51.50$107,13078%
6California$56.16$116,82078%
7Georgia$44.00$91,51076%
8Delaware$47.76$99,34075%
9Mississippi$34.48$71,72072%
10Ohio$41.48$86,27067%
11Idaho$37.65$78,32067%
12New Hampshire$45.50$94,65067%
13South Carolina$37.06$77,08067%
14Iowa$39.34$81,82066%
15Florida$39.81$82,81066%
16Maryland$50.55$105,15065%
17Colorado$48.33$100,52065%
18Arkansas$35.28$73,39064%
19Kentucky$36.21$75,33064%
20Missouri$39.44$82,04064%
21New Jersey$50.04$104,09063%
22Pennsylvania$42.29$87,97063%
23Arizona$41.84$87,03063%
24Oregon$44.25$92,04062%
25West Virginia$35.29$73,41062%
26Kansas$37.70$78,42061%
27Tennessee$36.86$76,66061%
28Utah$39.82$82,83061%
29Minnesota$45.47$94,57061%
30Indiana$37.66$78,34061%
31Nebraska$38.83$80,77061%
32Illinois$44.87$93,32061%
33Wisconsin$39.55$82,27061%
34Oklahoma$36.33$75,56060%
35New Mexico$38.06$79,16059%
36Louisiana$35.50$73,84059%
37Nevada$38.29$79,65058%
38Maine$38.48$80,03056%
39South Dakota$33.65$70,00056%
40Rhode Island$44.43$92,41053%
41Michigan$39.32$81,78053%
42New York$49.65$103,28052%
43Montana$34.40$71,54051%
44Massachusetts$50.67$105,40051%
45Vermont$38.55$80,18050%
46Connecticut$45.94$95,55046%
47Hawaii$40.32$83,87044%
48North Dakota$34.53$71,82037%
49Alaska$40.02$83,25035%
50Wyoming$32.52$67,64032%
51District of Columbia$54.78$113,93020%

Why are tech workers so generously compensated in Alabama? It could be because the area’s talent pool is not keeping up with demand.

In 2021, Huntsville, Alabama is expected to see 25,000 new jobs in aerospace, logistics, defense, and other tech-related industries. But these jobs could be difficult to fill given the area’s low unemployment rate.

On the other end of the spectrum, the District of Columbia has the smallest discrepancy between tech and other salaries. But at $95,330, the area has the highest average yearly salary for other occupations in the country—and tech workers still make 20% more.

Top 10 Metro Areas for Tech Salaries

Some of the highest-paying states are also home to the highest-paying metro areas.

For instance, when it comes to pay differences in tech, two of the top 10 metro areas are located in Washington state, while three are in California. The graphic below shows the metros with the highest difference between the area’s average salary and the average salary of tech jobs.

Top Tech Salaries

The highest pay difference between tech jobs vs the average salary is in San Jose, where tech workers make 507% more on average. This figure is almost certainly skewed because of the area’s high concentration of tech millionaires and top tier programmers.

Highest Paying Tech Jobs Nationally

Of course, location isn’t the only factor that plays into salary—the type of job is important, too. Here’s a look at U.S. tech salaries, organized by job type:

Highest Paying Tech Jobs US

In this analysis, which looked at jobs in computer science as well as mathematics, actuaries are the highest paid professionals on average.

While actuaries are more on the mathematical and financial side of the equation, more commonly associated jobs with tech are all over the list as well: software developers, computer network architects, information security analysts, data scientists, computer programmers, web developers, computer systems analysts, and so on.

The Future of Tech is Bright

America’s information technology sector, worth about $1.6 trillion, is expected to grow to $5 trillion by the end of 2021. And as this fast-growing industry continues to boom, jobs in this sector are likely to remain in high supply.

Augmented Reality (AR) in the U.S. is looking especially promising and is projected to grow by a CAGR of 100% between 2021-2025.

In short, tech is expected to keep growing. And salaries will likely follow suit.

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Markets

3 Insights From the FED’s Latest Economic Snapshot

Stay up to date on the U.S. economy with this infographic summarizing the most recent Federal Reserve data released.

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us economic snapshot

3 Insights From the Latest U.S. Economic Data

Each month, the Federal Reserve Bank of New York publishes monthly economic snapshots.

To make this report accessible to a wider audience, we’ve identified the three most important takeaways from the report and compiled them into one infographic.

1. Growth figures in Q2 will make or break a recession

Generally speaking, a recession begins when an economy exhibits two consecutive quarters of negative GDP growth. Because U.S. GDP shrank by -1.5% in Q1 2022 (January to March), a lot rests on the Q2 figure (April to June) which should be released on July 28th.

Referencing strong business activity and continued growth in consumer spending, economists predict that U.S. GDP will grow by +2.1% in Q2. This would mark a decisive reversal from Q1, and put an end to recessionary fears for the time being.

Unfortunately, inflation is the top financial concern for Americans, and this is dampening consumer confidence. Shown below, the consumer confidence index reflects the public’s short-term outlook for income, business, and labor conditions.

consumer price index 2005 to 2022

Falling consumer confidence suggests that more people will delay big purchases such as cars, major appliances, and vacations.

2. The COVID-era housing boom could be over

Housing markets have been riding high since the beginning of the COVID-19 pandemic, but this run is likely coming to an end. Here’s a summary of what’s happened since 2020:

  • Lockdowns in early 2020 created lots of pent-up demand for homes
  • Greater household savings and record-low mortgage rates pushed demand even further
  • Supply chain disruptions greatly increased the cost of materials like lumber
  • Construction of new homes couldn’t keep up, and housing supply fell to historic lows

Today, home prices are at record highs and the cost of borrowing is rapidly rising. For evidence, look no further than the 30-year fixed mortgage rate, which has doubled to more than 6% since the beginning of 2022.

Given these developments, the drop in the number of home sales could be a sign that many Americans are being priced out of the market.

3. Don’t expect groceries to become any cheaper

Inflation has been a hot topic this year, especially with gas prices reaching $5 a gallon. But there’s one category of goods that’s perhaps even more alarming: food.

The following table includes food inflation over the past three years, as the percent change over the past 12 months.

DateCPI Food Component (%)
2018-02-011.4%
2019-05-012.0%
2019-06-011.9%
2019-07-011.8%
2019-08-011.7%
2019-09-011.8%
2019-10-012.1%
2019-11-012.0%
2019-12-011.8%
2020-01-011.8%
2020-02-011.8%
2020-03-011.9%
2020-04-013.5%
2020-05-014.0%
2020-06-014.5%
2020-07-014.1%
2020-08-014.1%
2020-09-014.0%
2020-10-013.9%
2020-11-013.7%
2020-12-013.9%
2021-01-013.8%
2021-02-013.6%
2021-03-013.5%
2021-04-012.4%
2021-05-012.1%
2021-06-012.4%
2021-07-013.4%
2021-08-013.7%
2021-09-014.6%
2021-10-015.3%
2021-11-016.1%
2021-12-016.3%
2022-01-017.0%
2022-02-017.9%
2022-03-018.8%
2022-04-019.4%
2022-05-0110.1%

From this data, we can see that food inflation really picked up speed in April 2020, jumping to +3.5% from +1.9% in the previous month. This was due to supply chain disruptions and a sudden rebound in global demand.

Fast forward to today, and food inflation is running rampant at 10.1%. A contributing factor is the impending fertilizer shortage, which stems from the Ukraine war. As it turns out, Russia is not only a massive exporter of oil, but wheat and fertilizer as well.

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Demographics

Mapped: A Decade of Population Growth and Decline in U.S. Counties

This map shows which counties in the U.S. have seen the most growth, and which places have seen their populations dwindle in the last 10 years.

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A Decade of Population Growth and Decline in U.S. Counties

There are a number of factors that determine how much a region’s population changes.

If an area sees a high number of migrants, along with a strong birth rate and low death rate, then its population is bound to increase over time. On the flip side, if more people are leaving the area than coming in, and the region’s birth rate is low, then its population will likely decline.

Which areas in the United States are seeing the most growth, and which places are seeing their populations dwindle?

This map, using data from the U.S. Census Bureau, shows a decade of population movement across U.S. counties, painting a detailed picture of U.S. population growth between 2010 and 2020.

Counties With The Biggest Population Growth from 2010-2020

To calculate population estimates for each county, the U.S. Census Bureau does the following calculations:

A county’s base population → plus births → minus deaths → plus migration = new population estimate

 
From 2010 to 2020, Maricopa County in Arizona saw the highest increase in its population estimate. Over a decade, the county gained 753,898 residents. Below are the counties that saw the biggest increases in population:

RankCountyPoint of ReferenceStatePop. Growth (2010–2020)
#1Maricopa CountyPhoenix, ScottsdaleArizona+753,898
#2Harris CountyHoustonTexas+630,711
#3Clark CountyLas VegasNevada+363,323
#4King CountySeattleWashington+335,884
#5Tarrant CountyFort Worth, ArlingtonTexas+305,180
#6Bexar CountySan AntonioTexas+303,982
#7Riverside CountyRiverside, Palm SpringsCalifornia+287,626
#8Collin CountyPlanoTexas+284,967
#9Travis CountyAustinTexas+270,111
#10Hillsborough CountyTampaFlorida+264,446

Phoenix and surrounding areas grew faster than any other major city in the country. The region’s sunny climate and amenities are popular with retirees, but another draw is housing affordability. Families from more expensive markets—California in particular—are moving to the city in droves. This is a trend that spilled over into the pandemic era as more people moved into remote and hybrid work situations.

Texas counties saw a lot of growth as well, with five of the top 10 gainers located in the state of Texas. A big draw for Texas is its relatively affordable housing market. In 2021, average home prices in the state stood at $172,500$53,310 below the national average.

Counties With The Biggest Population Drops from 2010-2020

On the opposite end of the spectrum, here’s a look at the top 10 counties that saw the biggest declines in their populations over the decade:

RankCountyPoint of ReferenceStatePop. Growth (2010–2020)
#1Cook CountyChicagoIllinois-90,693
#2Wayne CountyDetroitMichigan-74,224
#3Cuyahoga CountyClevelandOhio-50,220
#4Genesee CountyFlintMichigan-20,165
#5Suffolk CountyLong IslandNew York-20,064
#6Caddo ParishShreveportLouisiana-18,173
#7Westmoreland CountyMurrysvillePennsylvania-17,942
#8Hinds CountyJacksonMississippi-17,751
#9Kanawha CountyCharlestonWest Virginia-16,672
#10Cambria CountyJohnstownPennsylvania-14,786

The largest drops happened in counties along the Great Lakes, including Cook County (which includes the city of Chicago) and Wayne County (which includes the city of Detroit).

For many of these counties, particularly those in America’s “Rust Belt”, population drops over this period were a continuation of decades-long trends. Wayne County is an extreme example of this trend. From 1970 to 2020, the area lost one-third of its population.

U.S. Population Growth in Percentage Terms (2010-2020)

While the map above is great at showing where the greatest number of Americans migrated, it downplays big changes in counties with smaller populations.

For example, McKenzie County in North Dakota, with a 2020 population of just 15,242, was the fastest-growing U.S. county over the past decade. The county’s 138% increase was driven primarily by the Bakken oil boom in the area. High-growth counties in Texas also grew as new sources of energy were extracted in rural areas.

The nation’s counties are evenly divided between population increase and decline, and clear patterns emerge.

population changes in u.s. counties (%)

Pandemic Population Changes

More recent population changes reflect longer-term trends. During the COVID-19 pandemic, many of the counties that saw the strongest population increases were located in high-growth states like Florida and Texas.

Below are the 20 counties that grew the most from 2020 to 2021.

RankCountyPoint of ReferenceStatePop. Growth (2020–2021)
#1Maricopa CountyPhoenixArizona+58,246
#2Collin CountyPlanoTexas+36,313
#3Riverside CountyRiverside, Palm SpringsCalifornia+35,631
#4Fort Bend CountySugar LandTexas+29,895
#5Williamson CountyGeorgetownTexas+27,760
#6Denton CountyDentonTexas+27,747
#7Polk CountyLakelandFlorida+24,287
#8Montgomery CountyThe WoodlandsTexas+23,948
#9Lee CountyFort MyersFlorida+23,297
#10Utah CountyProvoUtah+21,843
#11Pinal CountySan Tan ValleyArizona+19,974
#12Clark CountyLas VegasNevada+19,090
#13Pasco CountyNew Port RicheyFlorida+18,322
#14Wake CountyRaleighNorth Carolina+16,651
#15St. Johns CountySt. AugustineFlorida+15,550
#16Hillsborough CountyTampaFlorida+14,814
#17Bexar CountySan AntonioTexas+14,184
#18Ada CountyBoiseIdaho+13,947
#19Osceola CountyKissimmeeFlorida+12,427
#20St. Lucie CountyFort PierceFlorida+12,304

Many of these counties are located next to large cities, reflecting a shift to the suburbs and larger living spaces. However, as COVID-19 restrictions ease, and the pandemic housing boom tapers off due to rising interest rates, it remains to be seen whether the suburban shift will continue, or if people begin to migrate back to city centers.

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