How much does a Software Engineer make in Tennessee?

BLS reports a median annual wage of $117,340 for Software Engineers in Tennessee as of the latest OES release. That is the 50th-percentile figure — half earn more, half earn less. The 25th-percentile is $95,060 and the 75th-percentile is $134,890.

What is the real (cost-adjusted) Software Engineer salary in Tennessee?

After BEA RPP adjustment (regional price parity index 92.1 for Tennessee), the real-wage equivalent is $127,413 — what the $117,340 nominal salary actually buys. Quartiles in real terms: $103,221 to $146,470.

What does the top of the Software Engineer pay scale look like in Tennessee?

The 90th percentile lands at $164,420. That tier typically reflects senior roles, specialty certifications, high-cost-of-living metros within the state, or union-negotiated rate cards. Below that, the P75 quartile is $134,890.

How wide is the wage spread in Tennessee?

P10 to P90 spans $72,140 to $164,420. That spread captures entry-level to top-quartile pay, including specialty differentials and metro-area variance within the state.

Is Tennessee a 'real-wage arbitrage' state for Software Engineers?

Yes — the BEA RPP of 92.1 is below the national 100 baseline, so nominal $117,340 stretches to a real-wage equivalent of $127,413. The take-home advantage versus a higher-RPP state is meaningful for Software Engineers comparing offers across regions.

Does the BLS software engineer wage include FAANG total comp in Tennessee?

No — BLS OES captures W-2 base wages only. RSU vesting, sign-on bonuses, performance bonuses, and equity refreshes are not included. For senior tech-cluster roles in Tennessee, total comp can run 30-70% above the BLS-reported median once equity is added back. The Levels.fyi-style breakdowns on the parent occupation page show the gap.

How does remote work affect software engineer pay in Tennessee?

Remote-first companies typically anchor pay to one of three reference markets (Bay Area, NYC, or a national average) regardless of where the engineer lives. Tennessee-resident engineers working remotely for high-CoL companies can earn well above the in-state BLS median; the BEA RPP-adjusted real wage advantage is meaningful. Conversely, location-adjusted remote bands compress the spread.

Tennessee Software Engineer Salary: BLS $117K Median, Real $127K (2026)

TL;DR

Software Engineers in Tennessee earn a BLS median of $117,340, with real take-home of $127,413 after BEA RPP adjustment.
P25-P75 spread runs $95,060 to $134,890; P10 floor $72,140, P90 ceiling $164,420.
Below-100 RPP flips this state above its nominal rank in real-wage terms; the gap is about $10,073.
State ranks #29 nationally on nominal wage, #20 on real (RPP-adjusted) wage.

Wage breakdown — Tennessee

Percentile	Nominal (BLS)	Real (BEA RPP-adjusted)
P10 (entry tier)	$72,140	$78,333
P25 (lower quartile)	$95,060	$103,221
P50 (median)	$117,340	$127,413
P75 (upper quartile)	$134,890	$146,470
P90 (top tier)	$164,420	$178,535
Mean	$117,940	$128,065
Employment	18,750 Software Engineers in Tennessee

Cost of living — BEA Regional Price Parity

Component	Tennessee index (US = 100)
All-items RPP	92.1
Goods	94.3
Services	76.4
Rents	77.9

Tennessee sits below the national baseline (RPP 92.1), so nominal pay translates to a higher real wage than the BLS median suggests — particularly visible in rents at 77.9.

After-tax take-home — Tennessee (2024 BLS · 2024 tax year, single filer)

Layer-by-layer take-home math at the BLS median

Layer	Amount	Note
Gross BLS P50 (Software Engineer)	$117,340	nominal median
Federal income tax	−$17,062	14.5% effective; std deduction $15,750 applied
State income tax	$0	no state income tax (Hall tax repealed 2021)
FICA (SS 6.2% + Medicare 1.45%)	−$8,977	SS capped at $183,600 wage base
Take-home (after-tax)	$91,302	77.8% of gross
Real take-home (RPP-adjusted)	$99,140	÷ (92.1 / 100) BEA cost-of-living

What the Tennessee state-tax burden means for Software Engineer take-home

Tennessee levies no state income tax on wages, which is worth roughly $5,867 a year for a Software Engineer at the BLS median compared with the national-average state burden (≈5%). After the favorable cost of living, real take-home is $99,140 — higher than the nominal after-tax figure because RPP is below 100.

Computed from 2026 IRS federal brackets (Rev. Proc. 2025-32), 2026 state DOR brackets, and 2026 FICA rates. Single filer, standard deduction, no other adjustments. See methodology · tax for limitations (married filers, ITM/SALT itemizers, retirement deferrals, HSA, dependent credits, etc.).

National context

Across the United States, BLS reports a national median of $133,080 for Software Engineers with mean pay of $144,570 and total employment of 1,654,440. Tennessee sits at #29 on nominal pay and #20 on real (cost-adjusted) pay among the 51 states and DC. After cost adjustment, Tennessee climbs 9 positions — the cost of living is favorable relative to the wage.

Frequently asked questions

How much does a Software Engineer make in Tennessee?: BLS reports a median annual wage of $117,340 for Software Engineers in Tennessee as of the latest OES release. That is the 50th-percentile figure — half earn more, half earn less. The 25th-percentile is $95,060 and the 75th-percentile is $134,890.
What is the real (cost-adjusted) Software Engineer salary in Tennessee?: After BEA RPP adjustment (regional price parity index 92.1 for Tennessee), the real-wage equivalent is $127,413 — what the $117,340 nominal salary actually buys. Quartiles in real terms: $103,221 to $146,470.
What does the top of the Software Engineer pay scale look like in Tennessee?: The 90th percentile lands at $164,420. That tier typically reflects senior roles, specialty certifications, high-cost-of-living metros within the state, or union-negotiated rate cards. Below that, the P75 quartile is $134,890.
How wide is the wage spread in Tennessee?: P10 to P90 spans $72,140 to $164,420. That spread captures entry-level to top-quartile pay, including specialty differentials and metro-area variance within the state.
Is Tennessee a 'real-wage arbitrage' state for Software Engineers?: Yes — the BEA RPP of 92.1 is below the national 100 baseline, so nominal $117,340 stretches to a real-wage equivalent of $127,413. The take-home advantage versus a higher-RPP state is meaningful for Software Engineers comparing offers across regions.
Does the BLS software engineer wage include FAANG total comp in Tennessee?: No — BLS OES captures W-2 base wages only. RSU vesting, sign-on bonuses, performance bonuses, and equity refreshes are not included. For senior tech-cluster roles in Tennessee, total comp can run 30-70% above the BLS-reported median once equity is added back. The Levels.fyi-style breakdowns on the parent occupation page show the gap.
How does remote work affect software engineer pay in Tennessee?: Remote-first companies typically anchor pay to one of three reference markets (Bay Area, NYC, or a national average) regardless of where the engineer lives. Tennessee-resident engineers working remotely for high-CoL companies can earn well above the in-state BLS median; the BEA RPP-adjusted real wage advantage is meaningful. Conversely, location-adjusted remote bands compress the spread.

Sources & methodology

U.S. Bureau of Labor Statistics — Occupational Employment and Wage Statistics (OES), SOC 15-1252, 2024 reference period.
U.S. Bureau of Economic Analysis — Regional Price Parities, 2023 vintage (all-items, goods, services, rents).
Real-wage figures = nominal BLS wage ÷ (state RPP / 100).
See the methodology page for full computation details and limitations.

By Marcus Liang · Founder & Editor · Last synced 2026-05-05.

Cross-comparison: see how Tennessee Software Engineer pay ranks against the other 254 state × occupation pages on the Real Wage Atlas → — four-way ranking by real wage, after-tax take-home, state-tax savings, and cost-of-living arbitrage.