Executive Summary
In 2026, San Francisco remains the highest-paying tech hub globally, with Senior Engineers earning $240K median total compensation. However, after adjusting for cost-of-living, taxes, and purchasing power parity, cities like Singapore, Seattle, and Austin offer competitive real income. This analysis compares nominal salaries, effective tax rates, housing costs, and lifestyle affordability across 10 major tech centers.
Nominal Salary Comparison: Senior Software Engineer
Base salary data for Senior Software Engineers (5-8 years experience) at tier-1 tech companies varies dramatically by geography. The following reflects typical compensation packages in 2026:
| Tech Hub | Base Salary | Equity (Annual) | Bonus | Total Comp |
|---|---|---|---|---|
| San Francisco Bay Area | $210,000 | $140,000 | $35,000 | $385,000 |
| Seattle | $195,000 | $120,000 | $32,000 | $347,000 |
| New York City | $200,000 | $130,000 | $33,000 | $363,000 |
| Austin | $175,000 | $100,000 | $28,000 | $303,000 |
| London | £85,000 | £55,000 | £15,000 | £155,000 ($195K) |
| Amsterdam | €82,000 | €48,000 | €12,000 | €142,000 ($155K) |
| Berlin | €75,000 | €42,000 | €10,000 | €127,000 ($139K) |
| Singapore | S$165,000 | S$95,000 | S$25,000 | S$285,000 ($210K) |
| Toronto | C$155,000 | C$85,000 | C$22,000 | C$262,000 ($195K) |
| Tel Aviv | ₪520,000 | ₪300,000 | ₪80,000 | ₪900,000 ($250K) |
Tax Burden Analysis
Effective tax rates vary significantly across jurisdictions, dramatically impacting take-home pay. The following calculations include income tax, social security contributions, and mandatory insurance premiums:
| Location | Gross Income | Effective Tax Rate | Net Take-Home | Monthly Net |
|---|---|---|---|---|
| San Francisco | $385,000 | 38.5% | $236,775 | $19,731 |
| Seattle (no state tax) | $347,000 | 32.8% | $233,184 | $19,432 |
| New York City | $363,000 | 40.2% | $217,074 | $18,090 |
| Austin (no state tax) | $303,000 | 31.5% | $207,555 | $17,296 |
| London | £155,000 ($195K) | 42.3% | £89,465 ($113K) | $9,396 |
| Amsterdam | €142,000 ($155K) | 41.8% | €82,644 ($90K) | $7,521 |
| Berlin | €127,000 ($139K) | 40.5% | €75,565 ($83K) | $6,887 |
| Singapore | S$285,000 ($210K) | 18.2% | S$233,130 ($172K) | $14,309 |
| Toronto | C$262,000 ($195K) | 38.7% | C$160,606 ($120K) | $9,962 |
| Tel Aviv | ₪900,000 ($250K) | 39.5% | ₪544,500 ($151K) | $12,604 |
Singapore stands out with the lowest tax burden (18.2%), while London and Amsterdam have the highest (42%+). This creates significant divergence between gross and net compensation.
Cost of Living Analysis
Monthly living expenses vary dramatically by city. The following represents typical costs for a single professional renting a 1-bedroom apartment in a desirable neighborhood:
| Location | Rent (1BR) | Food & Dining | Transport | Other | Total Monthly |
|---|---|---|---|---|---|
| San Francisco | $3,500 | $800 | $250 | $650 | $5,200 |
| Seattle | $2,800 | $700 | $200 | $550 | $4,250 |
| New York City | $4,200 | $850 | $150 | $700 | $5,900 |
| Austin | $2,200 | $650 | $300 | $500 | $3,650 |
| London | £2,100 ($2,650) | £450 ($568) | £180 ($227) | £420 ($530) | $3,975 |
| Amsterdam | €1,900 ($2,075) | €400 ($437) | €100 ($109) | €350 ($382) | $3,003 |
| Berlin | €1,400 ($1,529) | €350 ($382) | €80 ($87) | €300 ($328) | $2,326 |
| Singapore | S$3,200 ($2,360) | S$900 ($664) | S$150 ($111) | S$600 ($442) | $3,577 |
| Toronto | C$2,400 ($1,788) | C$550 ($410) | C$150 ($112) | C$450 ($335) | $2,645 |
| Tel Aviv | ₪6,500 ($1,806) | ₪2,000 ($556) | ₪500 ($139) | ₪1,200 ($333) | $2,834 |
Real Income Comparison: Purchasing Power Parity
After accounting for taxes and cost of living, we can calculate discretionary income (savings potential). This represents what remains after covering basic living expenses:
| Location | Monthly Net | Living Costs | Discretionary Income | Savings Rate |
|---|---|---|---|---|
| San Francisco | $19,731 | $5,200 | $14,531 | 73.6% |
| Seattle | $19,432 | $4,250 | $15,182 | 78.1% |
| New York City | $18,090 | $5,900 | $12,190 | 67.4% |
| Austin | $17,296 | $3,650 | $13,646 | 78.9% |
| London | $9,396 | $3,975 | $5,421 | 57.7% |
| Amsterdam | $7,521 | $3,003 | $4,518 | 60.1% |
| Berlin | $6,887 | $2,326 | $4,561 | 66.2% |
| Singapore | $14,309 | $3,577 | $10,732 | 75.0% |
| Toronto | $9,962 | $2,645 | $7,317 | 73.4% |
| Tel Aviv | $12,604 | $2,834 | $9,770 | 77.5% |
Quality of Life Factors
Compensation is only one factor in location decisions. Engineers also consider:
Work-Life Balance
- Europe (Berlin, Amsterdam, London): 25-30 days vacation, strong labor protections, cultural emphasis on work-life balance
- US Tech Hubs: "Unlimited" PTO (often used less), higher work intensity, long hours expected
- Singapore: 14-21 days vacation, high-intensity work culture similar to US
Healthcare
- Europe: Universal healthcare, minimal out-of-pocket costs
- US: Employer-sponsored insurance with deductibles, can be excellent at top tech companies but adds complexity
- Singapore: Hybrid system with mandatory savings accounts (Medisave)
Career Growth & Learning
- SF Bay Area: Unmatched density of startups, VCs, and cutting-edge companies. Best for career acceleration.
- Seattle, NYC: Strong tech presence with major company headquarters
- London, Singapore: Regional tech leaders with growing startup ecosystems
- Berlin, Amsterdam: Smaller but vibrant startup scenes
Remote Work Arbitrage
The rise of remote work creates new optimization strategies. Many engineers now:
- Earn US salaries while living in lower-cost locations: Remote roles from US companies paying $250K+ while living in Portugal, Mexico, or Eastern Europe
- Geographic salary arbitrage: Accept 10-20% salary cuts for 50%+ cost-of-living reductions
- Nomadic optimization: Rotate between locations to optimize for tax treaties and lifestyle
Example: A Senior Engineer earning $320K remotely for a US company while living in Lisbon or Medellin can save $8K-$12K monthly (vs. $5K-$7K in SF), dramatically accelerating wealth building despite lower nominal income.
Recommendations by Career Stage
Early Career (0-5 years)
Optimize for: Learning, network, career acceleration
Best locations: San Francisco Bay Area, Seattle, NYC
Rationale: Accept lower savings rates for maximum skill development and career optionality
Mid Career (5-12 years)
Optimize for: Compensation maximization, wealth building
Best locations: Seattle, Austin, Singapore (all offer high discretionary income)
Rationale: Balance high income with manageable living costs to maximize savings
Senior/Staff+ (12+ years)
Optimize for: Total comp, quality of life, family needs
Best locations: Context-dependent - SF for maximum comp, Europe for lifestyle, Singapore for tax efficiency
Rationale: With established careers, optimize for personal priorities rather than resume building
Conclusion
While San Francisco offers the highest nominal salaries ($385K for Senior Engineers), Seattle actually delivers higher discretionary income due to no state income tax. Singapore emerges as a compelling option with favorable taxes (18.2%) and strong real income ($10.7K monthly savings). European cities offer lower salaries but superior work-life balance and healthcare.
The optimal location depends on career stage, personal priorities, and financial goals. Early-career engineers should prioritize learning and network over pure compensation. Mid-career professionals optimizing for wealth accumulation should focus on high-discretionary-income markets like Seattle and Austin. Senior engineers with established careers can optimize for personal fit, whether that's maximum compensation (SF), lifestyle (Europe), or tax efficiency (Singapore).