Software Engineer Salary Memphis 2025

Quick Answer

Software Engineer Salary in Memphis: Full Breakdown

Based on Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) data from 2024, software engineers in Memphis earn an average of $116,280 annually. This represents compensation across all experience levels in the Memphis metropolitan statistical area.

The $116,280 mean salary for software engineers in Memphis reflects the local tech market dynamics. Memphis has a growing technology sector, though it remains smaller than major tech hubs like San Francisco, Seattle, or Austin. This translates to competitive but not premium salaries compared to the nation’s largest tech centers.

Cost of Living Context

One of the most significant advantages of pursuing a software engineering career in Memphis is the favorable cost-of-living ratio. Memphis consistently ranks among the most affordable major metropolitan areas in the United States, which means your $116,280 salary stretches considerably further than it would in coastal tech hubs.

Key Cost Factors:

• Memphis has a cost-of-living index substantially below the national average
• Housing costs, in particular, are significantly lower than national medians
• This means your effective purchasing power as a software engineer in Memphis is substantially higher than the raw salary might suggest when compared to high-cost areas

The affordability of Memphis makes the $116,280 salary particularly attractive for software engineers prioritizing financial stability, homeownership, or quality of life over maximum nominal compensation.

Salary Trend Over Time

The software engineering market in Memphis has shown steady stability. Based on BLS data through 2024, the $116,280 annual mean represents a mature, established compensation level for the region. Memphis’s tech employment base has been gradually expanding, driven by logistics companies, healthcare organizations, and growing fintech operations in the area.

The consistency of Memphis’s software engineer salaries reflects a stable, growing market without the extreme volatility seen in boom-and-bust tech markets. This stability can be attractive to professionals seeking predictable career progression.

Job Outlook and Market Demand

Software engineering remains one of the most in-demand technical fields nationally and regionally. Memphis’s growing logistics, healthcare, and financial services sectors are increasingly investing in technology infrastructure and digital transformation, creating sustained demand for software engineers.

The Memphis tech market offers:

• Steady growth in software development positions across multiple industries
• Diverse employment sectors including FedEx (global logistics), St. Jude Children’s Research Hospital (healthcare technology), and emerging fintech companies
• Lower competition compared to traditional tech hubs, potentially offering better advancement opportunities for qualified candidates

Top Employers for Software Engineers in Memphis

Memphis’s software engineering job market is anchored by several major employers:

Major Tech Employers:

• FedEx Corporation – Global logistics technology and software development
• St. Jude Children’s Research Hospital – Healthcare IT and medical software
• AutoZone – E-commerce and retail technology platforms
• Pinnacle Financial Group – Financial services software and fintech development
• ServiceMaster Global Holdings – Enterprise software and cloud solutions

These organizations regularly hire software engineers and offer competitive compensation packages, professional development opportunities, and career advancement potential.

Relocation Considerations

For software engineers considering a move to Memphis, several factors merit evaluation:

Advantages:

• Lower cost of living increases effective salary value
• Growing tech job market with diverse industry opportunities
• Affordable housing enables faster wealth building
• Less competitive job market may offer easier entry and advancement

Considerations:

• Nominal salaries are lower than major tech hubs (though cost-adjusted, they’re more competitive)
• Smaller tech community means fewer networking opportunities compared to Silicon Valley or Seattle
• Limited venture capital ecosystem compared to traditional tech centers

Related Guides

Frequently Asked Questions

What is the starting salary for a software engineer in Memphis?

While specific entry-level data isn’t available in the current dataset, the $116,280 mean salary reported by the BLS represents compensation across all experience levels. Entry-level positions typically start 20-30% below the mean, suggesting starting salaries in the $80,000–$95,000 range, though actual offers vary by employer and specific skill set.

How does software engineer salary in Memphis compare to the national average?

The national average for software engineers is approximately $120,000–$130,000 depending on the source and year. Memphis’s $116,280 mean is slightly below the national average in nominal terms. However, when adjusted for Memphis’s significantly lower cost of living, the effective purchasing power is substantially higher, making Memphis salaries more competitive than the raw numbers suggest.

Is it worth moving to Memphis for a software engineer position?

For software engineers prioritizing financial stability, homeownership, and quality of life, Memphis presents a compelling opportunity. The combination of reasonable salaries and very affordable living costs means faster debt payoff, easier home purchases, and higher savings rates. However, if you’re optimizing purely for maximum nominal salary or access to the largest tech ecosystem, traditional tech hubs may offer higher absolute compensation. Memphis works best for professionals seeking balanced career growth with strong financial outcomes.

What industries hire the most software engineers in Memphis?

The Memphis job market for software engineers is diverse, spanning logistics (FedEx), healthcare (St. Jude, Baptist Health), financial services (Pinnacle Financial), retail (AutoZone), and business services. This diversity reduces dependence on any single industry and provides multiple career paths.

What skills are most in-demand for software engineers in Memphis?

Based on the major employers in the region, cloud technologies, healthcare IT systems, logistics software, e-commerce platforms, and financial software development are particularly valued. Full-stack development, cloud architecture, and industry-specific domain knowledge command premium compensation.

How has the Memphis software engineer job market changed recently?

Through 2024, the Memphis software engineering market has remained stable with steady growth. The BLS data shows consistent mean salaries, indicating a maturing market without the extreme fluctuations seen in speculative tech markets. This stability suggests sustainable, long-term career opportunities.

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Data source: Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), 2024. SOC Code 15-1252 (Software Developers). MSA: Memphis, TN-MS-AR (32820).

Last updated: April 10, 2026

Disclaimer: Salary data presented here is based on public sources and represents aggregate averages. Actual compensation varies significantly based on employer, experience, education, skills, and market conditions. This content is informational and should not be construed as financial or career advice. Always conduct independent research and consult with industry professionals when making career decisions.