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PAY BY JOB

Software developer pay, for employers

What software developers earn, from Bureau of Labor Statistics (BLS) medians, what one costs to employ, how the job is paid and whether overtime is owed.

Wages: BLS medians for May 2025. Pay and overtime rules checked on October 6, 2026 against the sources listed at the end of this page. For employers. General information, not legal or tax advice: federal rules only, and a state's law can require more.

Software developer pay at a glance

Median a year
$135,980
Median an hour
$65.38
BLS period
May 2025
Federal overtime
Exempt, on conditions

What software developers earn

What the median covers
BLS medians include base rate; cost-of-living allowances; guaranteed pay; hazardous-duty pay; incentive pay, including commissions and production bonuses; and tips.They leave out overtime pay; severance pay; shift differentials; nonproduction bonuses; employer cost for supplementary benefits; and tuition reimbursements.The annual figure is the hourly median times 2,080 hours.Source: BLS, May 2025 OEWS Estimates: technical notes (opens in a new tab), read from an archived copy dated August 30, 2026 (opens in a new tab)

Median pay by state

BLS medians for software developers in each state and DC, May 2025.

StateMedian a yearMedian an hour
Alabama$122,540$58.91
AlaskaNot published by BLS
Arizona$129,690$62.35
Arkansas$104,490$50.23
California$174,410$83.85
Colorado$138,390$66.53
Connecticut$134,120$64.48
Delaware$133,020$63.95
District of Columbia$136,880$65.81
Florida$130,980$62.97
Georgia$131,010$62.99
Hawaii$124,040$59.64
Idaho$131,590$63.26
Illinois$132,110$63.52
Indiana$105,920$50.92
Iowa$114,890$55.24
Kansas$113,420$54.53
Kentucky$109,010$52.41
Louisiana$102,800$49.42
Maine$123,120$59.19
Maryland$138,680$66.67
Massachusetts$165,210$79.43
Michigan$125,570$60.37
Minnesota$130,050$62.52
Mississippi$95,330$45.83
Missouri$126,120$60.64
Montana$121,990$58.65
Nebraska$110,900$53.32
Nevada$128,810$61.93
New Hampshire$139,720$67.17
New Jersey$135,940$65.36
New Mexico$124,520$59.86
New York$166,180$79.89
North Carolina$134,710$64.76
North Dakota$105,600$50.77
Ohio$114,090$54.85
Oklahoma$118,100$56.78
Oregon$142,720$68.62
Pennsylvania$126,550$60.84
Rhode Island$130,590$62.78
South Carolina$129,450$62.24
South Dakota$96,310$46.30
Tennessee$122,430$58.86
Texas$132,150$63.54
Utah$128,810$61.93
Vermont$125,280$60.23
Virginia$136,460$65.61
Washington$166,540$80.07
West Virginia$121,000$58.18
Wisconsin$122,660$58.97
Wyoming$115,170$55.37

BLS publishes no median for software developers in Alaska; none is estimated here. Source: BLS OEWS May 2025 state estimates (oesm25st.zip) (opens in a new tab), read from an archived copy dated October 4, 2026 (opens in a new tab)

What one costs to employ

The national median as the year's gross wages, plus your Social Security, Medicare and FUTA. Enter your state unemployment rate and wage base, workers' comp rate, benefits and overhead for your own figure.

WORKED EXAMPLE

One year: a software developer at the national median, $135,980 (BLS, May 2025)

26 U.S.C. §§3111, 3301
Gross wagesFor the year, all subject to FICA and FUTA
$
Social Security, employer share6.2% of wages up to $184,500 (2026)
$8,430.76
Medicare, employer share1.45% of all wages
$1,971.71
FUTA0.6% of the first $7,000, with the full 5.4% credit
$42.00
State unemploymentYour assigned rate, on your state’s wage base
%on$
Workers’ compensationYour insurer’s rate per $100 of payroll
$
BenefitsYour share of premiums and retirement contributions
$
OverheadEquipment, training, and other costs you assign
$
Wages: $135,980.00Employer taxes and comp: $10,444.47Benefits and overhead: $0.00
Cost of the employee$146,424.47For the year
On top of wages$10,444.47
Multiple of wages1.08×
Adding the employee’s withheld FICA would count $10,402.47 twiceThe employee’s share comes out of the wages you already counted; only your matching share adds cost.
$10,402.47counted twice

Employer cost of one employee for calendar year 2026: 6.2% Social Security on wages up to $184,500 (2026), 1.45% Medicare, and FUTA at 0.6% of the first $7,000 a year with the full 5.4% credit, plus the state unemployment, workers’ compensation, benefits, and overhead you enter, with all wages subject to FICA and FUTA. It leaves out credit reduction states, pay that FICA or FUTA excludes, such as your health plan contributions, and how the cost spreads across pay periods. Other cases and state law can change the result.

State unemployment rates and wage bases: Payroll tax rates by state

Each way of paying the job, with the federal rule for its regular rate and overtime. Where the BLS Occupational Outlook Handbook says how the job is paid, its words are quoted.

Salary
An exempt salary is a set amount each pay period, at least $684 a week, not reduced for the quantity or quality of the work.Source: 29 CFR 541.602 (opens in a new tab), checked October 6, 2026; 29 CFR 541.600 (opens in a new tab)

Overtime

Exempt, on conditions
Exempt under the computer employee exemption when the primary duty is designing, building or testing software and the pay is a salary of at least $684 a week or at least $27.63 an hour.Federal rule only: a state's overtime law can require more.Source: 29 CFR 541.400 (opens in a new tab), checked October 6, 2026; 29 U.S.C. 213 (opens in a new tab); 29 CFR 541.600 (opens in a new tab)

Industry and workers' comp

HCM industry
Professional services: Firms, agencies, and tech
Workers' comp class codes
Class codes that commonly cover software developers, on Worklio Insurance. The class depends on your business and the manual filed in your state.8810 Clerical office8803 Traveling auditors and accountantsAll class codes on Worklio Insurance

WORKLIO HCM

Run payroll for software developers in Worklio HCM

Payroll, tax, HR, time, and benefits administration run on one 50-state engine, for companies with 50 to 50,000+ employees. Approve once: hours flow in from time tracking, deductions from benefits, and every pay run posts taxes, filings, comp premiums and the general ledger automatically. For professional services: withholding for remote employees in every state, off-cycle bonus runs with supplemental tax, and labor cost by client or project.

Other jobs

Sources

The data series, regulation or document behind each figure and rule, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for how you classify and pay each employee.

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