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Create CVUnderstanding salary comparison by state in the US is one of the most powerful levers you can use to increase your income without changing your profession. Two professionals with identical experience, skills, and job titles can earn dramatically different compensation depending on geography, industry concentration, and local labor market dynamics.
This guide goes beyond basic averages. It explains how salaries are actually determined across states, how recruiters benchmark compensation, and how you can strategically position yourself to earn at the top of the market.
When candidates search “average salary USA by state” or “how much do people earn per state,” they usually see surface-level numbers. The reality is more complex because compensation includes:
Base salary
Bonuses (performance, annual, signing)
Equity (RSUs, stock options)
Benefits (healthcare, retirement, PTO)
Across all industries and roles, here is a realistic breakdown:
Lowest-paying states: $45,000 – $65,000 average base salary
Mid-tier states: $60,000 – $90,000 average base salary
Search intent often includes “salary by experience USA” or “entry vs senior salary by state.” Here's how compensation scales.
Low-paying states → $40,000 – $60,000
Mid-tier states → $50,000 – $75,000
High-paying states → $65,000 – $95,000
Key insight: Entry-level salaries are less geographically differentiated because companies use standardized entry bands.
Low states → $60,000 – $90,000
Mid states → $80,000 – $120,000
Top states → $110,000 – $160,000
Most candidates underestimate how much compensation varies beyond base salary.
Base salary → 60–75% of total compensation
Bonus → 10–25%
Equity → 15–50% (often the largest differentiator)
Base salary → 70–85%
Bonus → 10–20%
Equity → 5–20%
Top-paying states: $85,000 – $140,000+ average base salary
These states consistently dominate salary benchmarks:
California → $95,000 – $180,000+ total compensation
New York → $90,000 – $170,000+ total compensation
Washington → $100,000 – $190,000+ total compensation
Massachusetts → $85,000 – $160,000+ total compensation
These markets are driven by:
Tech concentration (Silicon Valley, Seattle)
Finance (NYC)
Venture-backed startups
Higher cost of living (COL-adjusted salaries)
Texas → $70,000 – $130,000
Colorado → $75,000 – $140,000
Illinois → $70,000 – $125,000
Georgia → $65,000 – $120,000
These states offer a balance of:
Growing job markets
Lower cost of living vs coastal hubs
Increasing presence of tech and corporate HQs
Mississippi → $45,000 – $80,000
West Virginia → $50,000 – $85,000
Arkansas → $50,000 – $85,000
Lower salaries are driven by:
Lower employer budgets
Reduced competition for talent
Lower cost of living
This is where location starts to significantly impact salary due to specialization and demand.
Low states → $80,000 – $120,000
Mid states → $110,000 – $160,000
Top states → $150,000 – $250,000+
At this level, total compensation differences become massive due to:
Bonuses
Equity grants
Leadership premiums
Low states → $120,000 – $200,000
Mid states → $180,000 – $350,000
Top states → $300,000 – $1M+ (including equity)
Base salary → 80–95%
Bonus → 5–15%
Equity → minimal or nonexistent
Key recruiter insight:
Candidates moving from a low-equity state to a high-equity market often underestimate the long-term upside of stock compensation.
States with talent shortages pay significantly more.
Example:
Software engineers in California earn more due to high demand and limited supply
The same role in rural states has lower demand → lower salaries
Salary is heavily tied to dominant industries:
California → Tech → high salaries + equity
New York → Finance → high bonuses
Texas → Energy + tech → mixed compensation
Midwest → Manufacturing → lower compensation ceiling
Companies adjust salaries based on:
Housing costs
Taxes
Local wage benchmarks
However, COL adjustments are not perfectly aligned with salary differences.
Example:
A role paying $150K in California might pay $120K in Texas, but the cost of living difference could justify a bigger gap.
Big Tech → standardized, high compensation bands
Startups → lower base, higher equity
Corporate enterprises → stable base, moderate bonus
Government → lower base, strong benefits
Remote work has disrupted salary geography:
Some companies pay location-based salaries
Others offer “national bands”
Top companies still anchor to high-cost markets
Recruiters don’t guess salaries. They use structured frameworks:
Each role has predefined ranges:
Minimum → budget floor
Midpoint → target hire
Maximum → top talent or stretch candidate
Companies rely on:
Radford
Mercer
Levels.fyi (for tech roles)
These tools provide real-time data by:
State
City
Role
Experience level
Hiring managers must ensure:
New hires don’t exceed existing employee salaries
Promotions align with internal pay structure
Key insight:
Even if you deserve more, internal equity can cap your offer.
You don’t always need to relocate.
Apply to companies headquartered in high-paying states
Negotiate based on company HQ salary bands
Live in a lower-cost state while earning a higher salary.
Example:
Weak Example:
Accepting a $90K local offer in a low-cost state
Good Example:
Securing a $130K remote role from a California-based company while living in Texas
Relocation ROI is highest at:
Mid-level → fastest salary growth
Senior level → access to leadership roles
State-based salary differences can be used in negotiation.
Weak Example:
“I need more money because it’s expensive here.”
Good Example:
“I’m seeing comparable roles in California and New York offering $140K–$160K. Based on my experience, I’d like to align within that range.”
California
Washington
New York
These markets offer:
Faster promotions
Equity upside
High bonus potential
Texas
North Carolina
Arizona
Moderate salary growth with lower volatility.
Rural states
Manufacturing-heavy economies
Growth is slower due to:
Limited competition
Lower salary ceilings
Software Engineer (5 years experience):
California → $140K base + $40K equity + $20K bonus = $200K TC
Texas → $115K base + $10K bonus = $125K TC
Difference: $75K annually
Marketing Manager:
Local offer (Midwest) → $85K
Remote coastal company → $120K
Difference: $35K without relocation
Many candidates don’t realize geography can change salary by 30–70%.
Focusing only on base salary leads to missed opportunities in:
Equity
Bonuses
Candidates who lack data accept lower offers.
More companies will adopt:
Hybrid salary bands
National compensation frameworks
Differences between states will shrink slightly but not disappear.
High-demand skills will command premium salaries regardless of geography.
Your salary is not just determined by your job title. It is heavily influenced by:
Location
Industry
Company type
Experience
Negotiation strategy
The difference between a low-paying state and a high-paying state can exceed $100,000 per year in total compensation for the same role.
The highest earners understand this and strategically position themselves in:
High-demand markets
High-paying companies
Strong negotiation scenarios
If you treat salary as a strategic decision rather than a fixed outcome, your earning potential increases dramatically.
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