Economy

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

Published

2 years ago

August 16, 2021

Carmen Ang

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.

Rank	State	Average hourly wage for tech workers	Average salary for tech workers	% more that tech workers earn than all occupations
1	Alabama	$41.69	$86,720	85%
2	Washington	$58.96	$122,640	83%
3	North Carolina	$44.19	$91,920	80%
4	Texas	$45.04	$93,690	79%
5	Virginia	$51.50	$107,130	78%
6	California	$56.16	$116,820	78%
7	Georgia	$44.00	$91,510	76%
8	Delaware	$47.76	$99,340	75%
9	Mississippi	$34.48	$71,720	72%
10	Ohio	$41.48	$86,270	67%
11	Idaho	$37.65	$78,320	67%
12	New Hampshire	$45.50	$94,650	67%
13	South Carolina	$37.06	$77,080	67%
14	Iowa	$39.34	$81,820	66%
15	Florida	$39.81	$82,810	66%
16	Maryland	$50.55	$105,150	65%
17	Colorado	$48.33	$100,520	65%
18	Arkansas	$35.28	$73,390	64%
19	Kentucky	$36.21	$75,330	64%
20	Missouri	$39.44	$82,040	64%
21	New Jersey	$50.04	$104,090	63%
22	Pennsylvania	$42.29	$87,970	63%
23	Arizona	$41.84	$87,030	63%
24	Oregon	$44.25	$92,040	62%
25	West Virginia	$35.29	$73,410	62%
26	Kansas	$37.70	$78,420	61%
27	Tennessee	$36.86	$76,660	61%
28	Utah	$39.82	$82,830	61%
29	Minnesota	$45.47	$94,570	61%
30	Indiana	$37.66	$78,340	61%
31	Nebraska	$38.83	$80,770	61%
32	Illinois	$44.87	$93,320	61%
33	Wisconsin	$39.55	$82,270	61%
34	Oklahoma	$36.33	$75,560	60%
35	New Mexico	$38.06	$79,160	59%
36	Louisiana	$35.50	$73,840	59%
37	Nevada	$38.29	$79,650	58%
38	Maine	$38.48	$80,030	56%
39	South Dakota	$33.65	$70,000	56%
40	Rhode Island	$44.43	$92,410	53%
41	Michigan	$39.32	$81,780	53%
42	New York	$49.65	$103,280	52%
43	Montana	$34.40	$71,540	51%
44	Massachusetts	$50.67	$105,400	51%
45	Vermont	$38.55	$80,180	50%
46	Connecticut	$45.94	$95,550	46%
47	Hawaii	$40.32	$83,870	44%
48	North Dakota	$34.53	$71,820	37%
49	Alaska	$40.02	$83,250	35%
50	Wyoming	$32.52	$67,640	32%
51	District of Columbia	$54.78	$113,930	20%

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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Money

Charted: Public Trust in the Federal Reserve

Public trust in the Federal Reserve chair has hit its lowest point in 20 years. Get the details in this infographic.

Published

6 days ago

May 23, 2023

Marcus Lu

The Briefing

Gallup conducts an annual poll to gauge the U.S. public’s trust in the Federal Reserve
After rising during the COVID-19 pandemic, public trust has fallen to a 20-year low

Charted: Public Trust in the Federal Reserve

Each year, Gallup conducts a survey of American adults on various economic topics, including the country’s central bank, the Federal Reserve.

More specifically, respondents are asked how much confidence they have in the current Fed chairman to do or recommend the right thing for the U.S. economy. We’ve visualized these results from 2001 to 2023 to see how confidence levels have changed over time.

Methodology and Results

The data used in this infographic is also listed in the table below. Percentages reflect the share of respondents that have either a “great deal” or “fair amount” of confidence.

Year	Fed chair	% Great deal or Fair amount
2023	Jerome Powell	36%
2022	Jerome Powell	43%
2021	Jerome Powell	55%
2020	Jerome Powell	58%
2019	Jerome Powell	50%
2018	Jerome Powell	45%
2017	Janet Yellen	45%
2016	Janet Yellen	38%
2015	Janet Yellen	42%
2014	Janet Yellen	37%
2013	Ben Bernanke	42%
2012	Ben Bernanke	39%
2011	Ben Bernanke	41%
2010	Ben Bernanke	44%
2009	Ben Bernanke	49%
2008	Ben Bernanke	47%
2007	Ben Bernanke	50%
2006	Ben Bernanke	41%
2005	Alan Greenspan	56%
2004	Alan Greenspan	61%
2003	Alan Greenspan	65%
2002	Alan Greenspan	69%
2001	Alan Greenspan	74%

Data for 2023 collected April 3-25, with this statement put to respondents: “Please tell me how much confidence you have [in the Fed chair] to recommend the right thing for the economy.”

We can see that trust in the Federal Reserve has fluctuated significantly in recent years.

For example, under Alan Greenspan, trust was initially high due to the relative stability of the economy. The burst of the dotcom bubble—which some attribute to Greenspan’s easy credit policies—resulted in a sharp decline.

On the flip side, public confidence spiked during the COVID-19 pandemic. This was likely due to Jerome Powell’s decisive actions to provide support to the U.S. economy throughout the crisis.

Measures implemented by the Fed include bringing interest rates to near zero, quantitative easing (buying government bonds with newly-printed money), and emergency lending programs to businesses.

Confidence Now on the Decline

After peaking at 58%, those with a “great deal” or “fair amount” of trust in the Fed chair have tumbled to 36%, the lowest number in 20 years.

This is likely due to Powell’s hard stance on fighting post-pandemic inflation, which has involved raising interest rates at an incredible speed. While these rate hikes may be necessary, they also have many adverse effects:

Negative impact on the stock market
Increases the burden for those with variable-rate debts
Makes mortgages and home buying less affordable

Higher rates have also prompted many U.S. tech companies to shrink their workforces, and have been a factor in the regional banking crisis, including the collapse of Silicon Valley Bank.

Where does this data come from?

Source: Gallup (2023)

Data Notes: Results are based on telephone interviews conducted April 3-25, 2023, with a random sample of –1,013—adults, ages 18+, living in all 50 U.S. states and the District of Columbia. For results based on this sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level. See source for details.