Are you planning to move to Austin, the state capital of Texas? Well, you need more information about it besides the fact that it is one of the best cities to live in and work in. It is highly populated and is leading among the fastest-growing cities in the US. Being the economic hub of Texas, it attracts about a billion dollars every year in corporate entity and venture capital investments. Entrepreneurs and expats looking for start-ups find Austin to be the most significant city in the country. The economy is diversified and has been growing consistently for over a decade. Living and working here is a jackpot for many reasons.
What average salary in Austin you should you expect? A person working in Austin, TX is paid around $103,000 per annum or $8,550 per month. The average annual salary ranges from 13,900 USD to 454,000 USD. These figures are inclusive of all employee benefits and are before deductions, meaning the take-home pay will be lower.
Austin is nicknamed “Live Music Capital of the World”; therefore, prepare to enjoy live performances of all music genres. Most people consider this city as ‘weird’, which is definitely true as you will encounter bona fide weirdoes and a mild breed of quirky. But aside from that, jobs here are plenty, especially in tech companies like Google, Facebook, Oracle, Dell, and Apple. The rate of employment keeps increasing as new job opportunities emerge. You will be guaranteed not only an enticing paycheck but also strong benefits and a flexible work schedule. Keep reading to get all the information about the job market in Austin.
Average Salary in Austin Texas
Salaries in Austin are 6% higher than those of Texas; not to mention, there is no personal income tax that is deducted. This means that the difference between your gross salary and net salary is very small. Salaries will, however, vary with the job title, level of education, level of experience, and gender. Since all these factors are combined, different employees earn different wages.
Salary by job title
Job title is the main determinant of salaries. It determines your seniority, duties, bonus, benefits, and monthly salary. Below are some of the common occupations and job titles in Austin and their corresponding average annual salaries:
- Accountant – 63,000 USD
- Administrative Assistant – 48,700 USD
- Aerospace Engineer – 107,000 USD
- Architect – 91,300 USD
- Attorney – 133,000 USD
- Biomedical Engineer – 80,300 USD
- Business Analyst – 119,000 USD
- Chef – 80,200 USD
- Chief Executive Officer – 215,000 USD
- Chief Financial Officer – 191,000 USD
- Civil Engineer – 83,500 USD
- Dentist – 226,000 USD
- Developer / Programmer – 82,100 USD
- Electrical Engineer – 97,900 USD
- Financial Manager – 194,000 USD
- Graphic Designer – 64,700 USD
- Human Resources Manager – 132,000 USD
- Internal Auditor – 103,000 USD
- Journalist – 90,300 USD
- Mechanical Engineer – 96,100 USD
- Nurse – 75,800 USD
- Pharmacist – 109,000 USD
- Sales Representative – 64,500 USD
- Teacher – 73,000 USD
Salary by experience
Generally speaking, the more experienced in the job market the more you have to offer and the less you require training and supervision. Therefore, you are paid more compared to juniors with little or no experience. Austin payroll is no different. Employees with a working experience of 2-5 years earn 32% more than freshers across all industries. Those whose experience is above 5 years earn an average of 36% more than those with less than 5 years. Once you hit ten years, your salary goes up by 21% then goes up again by 14% after crossing 15 years.
Salary by education
Austin has a highly-educated workforce due to the many universities in the area, including the University of Texas. The level of education greatly determines how much you will earn. Getting higher education is also a great tactic of getting a promotion. In the capital of Texas, employees with a diploma or certificate generally earn 17% more than those who stopped in high school. A Bachelor’s Degree will increase your salary by 24%, a Master’s Degree will increase it by 29%, and a PhD by 23%. The more educated you are the more competitive you become in the labour market.
Salary by gender
The gender pay gap exists in reality even when women try to compensate for their sex with higher education. Male employees still earn more than them. In the US, female employees generally earn 7% less than their male counterparts. While men are receiving an average salary of 90,600 USD, the females are getting 84,600 USD. The gap somehow varies with the age difference, with younger women being closer to equity pay compared to older women. After dissecting the gender pay gap, some of the reasons why it exists include differences in education, hours worked, experience, occupation, discrimination, and the few chances of women negotiating for higher pay.
Austin Salary Software Engineer
Do you design or develop software using mathematical analysis and computer science? Then you are lucky to be moving to Austin since it’s a great place for your career in software engineering. Generally, the average net annual salary for a software engineer in Austin, TX is 67,895 USD, but the amount fluctuates between 60,376 USD and 74,916 USD. Software engineers also receive additional cash compensation at an average of 13,988 USD. With this included the total compensation for a software engineer in Austin is about 81,883 USD a year.
However, salary ranges can still differ depending on factors such as certifications, seniority, working experience, education, gender, and additional skills. According to experience, a software engineer who has done the job for less than a year earns an average gross salary of $94,250. One who has an experience of over 7 years earns a gross of 127,178 USD. In regards to seniority, the Austin salary for software engineers at the entry-level is 71,597 USD per year and an average gross of 121,302 USD if you fall under the senior level.
Job opportunities in web development are on the increase in Texas at large. This is thanks to the many tech companies that are growing at a very high rate. Junior developers earn a considerably good salary for a starter, which increases after a few years of experience. The profession also guarantees great employee benefits and bonuses even for ex-pats.
Average Salary in Texas
The average salary in Texas is 97,000 USD per annum or 8,080 USD per month. When compared to the average salary in the US, that of Texas is higher by 11%. The average person is paid approximately 47 USD per hour. Half the population earns more than 91,200 USD gross per year while the other half earns less than the amount. Your salary is good enough to cater to your daily life if it falls above these salary indicators. If it falls below the median salary, it could be difficult to pay your bills. It is important to compare the salary offered by your prospective employers and the cost of living before moving anywhere.
Your salary might be different from these figures because other factors determine one’s salary as well. This includes employer capability, level of education, experience, job title, and location. Employees enjoy tax-free wages since there is no personal income tax in the state of Texas. Companies and employers enjoy a business-friendly environment because they do not pay corporate income tax. Texas boasts easy access to world markets, a highly skilled workforce, predictable regulations, and robust infrastructure.
All classified job positions in Texas are covered in three salary schedules. Each classification corresponds to a salary group and a salary schedule providing the legal salary ranges. Schedule A consists of salaries for paraprofessionals, maintenance, administrative support, and technical positions. Schedule B is meant for professional and managerial positions while schedule C is for commissioned law enforcement positions. Job opportunities are available in plenty for everyone including ex-pats. There are so many international organizations and multinational companies creating new jobs every day.
Cost Of Living Austin
The cost of living in Austin is relatively low, and actually 3% lower than the US average. Recent surveys show that you can lead a comfortable happy life in Austin with about 78,000 USD per year. A single person spends about 830 USD per month without rent. A family of four will need about 2,945 USD per month without rent. Here are the basic expenses considered in the cost of living in Austin:
Rent in Austin is too darn high but lower than that of the areas along the coast. Housing expenses here are 2% higher than the US average. To give you a glimpse of the average prices, a 1-bedroom apartment costs $1,723/month in the city centre and $1,105 outside the city centre. A 3-bedroom one is $3,089.66 in the city centre and $1,919.10 outside the city centre. Purchasing an apartment is way too expensive at an average of $3,530.46 per square meter in the city centre and $2,081.25 outside the city square. The mortgage interest rate is at a fixed rate of 3.93% for 20 years.
Food and grocery
Grocery prices in Austin are 12% lower than the US average. Some advice; cooking at home rather than eating out will save you a lot of money.
A basic energy consumption bill for an 85m2 apartment is about $137.05/month for electricity, water, cooling, garbage, and heating.
The cost of gas is $0.60 per litre, which is about 7% lower than the national gas price average. Traffic is always terrible and public transport is not so widely available. Charges for public transport are about 1.45 USD for a one-way ticket and you can get a monthly pass at $41.25.
About the author: Marta Kovachek is the author of this article. She graduated from the University of Chicago with a master’s degree in Economics. Marta enjoys writing about the current economic situation and loves helping our readers to find their next "destination". From places to live to complex social and economic topics, we always enjoy Marta's work. Please contact us in case of any questions.