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Software Engineer III Salary in the United States

How much does a Software Engineer III make in the United States?

As of August 01, 2026, the average salary for a Software Engineer III in the United States is $128,690 per year, which breaks down to an hourly rate of $62.

However, a Software Engineer III's salary can vary significantly. Here’s a look at the typical salary range:

  • Top Earners (90th percentile): $149,583
  • Majority Range (25th-75th percentile): $118,378 to $139,626
  • Entry-Level (10th percentile): $108,989

Key Factors That Influence Software Engineer III Salaries

A Software Engineer III's salary isn't a fixed number. It's shaped by several important factors. Below, we'll explore how your years of experience, geographic location, education and company size can directly affect your earning potential.

How Experience Level Affects Software Engineer III Salaries?

Experience is a primary driver of a Software Engineer III's salary. As you build your skills and take on more complex tasks, your compensation generally increases. Here's how the average salary grows at different career stages:

  • Software Engineer I (0-2 years): $81,656
  • Software Engineer II (2-4 years): $105,084
  • Software Engineer III (4-7 years): $128,690
  • Software Engineer IV (7+ years): $148,888
  • Software Engineer V (7-10 years): $171,159
Job Role Years of Experience Average Salary
Software Engineer I0-2 years$81,656
Software Engineer II2-4 years$105,084
Software Engineer III4-7 years$128,690
Software Engineer IV7+ years$148,888
Software Engineer V7-10 years$171,159

How Do Software Engineer IIIs Salaries Vary from State to State?

Your salary can change significantly depending on where you work. States with a higher cost of living and strong industrial sectors often pay more to attract Software Engineer IIIs. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $142,486.
  • California: $141,945.
  • Massachusetts: $140,053.

Top Paying Cities for Software Engineer III

Salaries can also vary between different cities. Major metropolitan areas or cities with a high demand for technicians often offer more competitive pay. Here are a few examples of average annual salaries in different U.S. cities:

  • San Jose: $162,317
  • San Francisco: $160,539
  • Oakland: $157,156

What Skills Can Increase a Software Engineer III's Salary?

Demanded Skills for the Role:

  • Analysis (Mentioned in 2.68% Job Postings): Analysis is the process of considering something carefully or using statistical methods in order to understand it or explain it.
  • Software Development (Mentioned in 4.7% Job Postings): Software development is the process of conceiving, specifying, designing, programming, documenting, testing, and bug fixing involved in creating and maintaining applications, frameworks, or other software components. Software development is a process of writing and maintaining the source code, but in a broader sense, it includes all that is involved between the conception of the desired software through to the final manifestation of the software, sometimes in a planned and structured process. Therefore, software development may include research, new development, prototyping, modification, reuse, re-engineering, maintenance, or any other activities that result in software products. Software can be developed for a variety of purposes, the three most common being to meet specific needs of a specific client/business (the case with custom software), to meet a perceived need of some set of potential users (the case with commercial and open source software), or for personal use (e.g. a scientist may write software to automate a mundane task). Embedded software development, that is, the development of embedded software, such as used for controlling consumer products, requires the development process to be integrated with the development of the controlled physical product. System software underlies applications and the programming process itself, and is often developed separately.
  • Software Engineering (Mentioned in 2.8% Job Postings): Software engineering is the application of engineering to the development of software in a systematic method. Notable definitions of software engineering include: "the systematic application of scientific and technological knowledge, methods, and experience to the design, implementation, testing, and documentation of software"—The Bureau of Labor Statistics—IEEE Systems and software engineering - Vocabulary "The application of a systematic, disciplined, quantifiable approach to the development, operation, and maintenance of software"—IEEE Standard Glossary of Software Engineering Terminology "an engineering discipline that is concerned with all aspects of software production"—Ian Sommerville "the establishment and use of sound engineering principles in order to economically obtain software that is reliable and works efficiently on real machines"—Fritz Bauer
Skills Demand Percentage
Analysis 2.68%
Software Development 4.7%
Software Engineering 2.8%

What skills can make your compensation higher?

Mastering certain specialized skills can lead to a significant increase in pay. Here are examples of skills and the potential impact they can have on a Software Engineer III's salary.

  • Open Source: Can increase your salary by up to 4%.
  • Container: Can increase your salary by up to 3%.
  • Innovation: Can increase your salary by up to 3%.
Skill Salary Salary % Increase
Open Source $133,838
4%
Container $132,551
3%
Innovation $132,551
3%

Software Engineer III Salary by Company Size: Startups vs. Enterprise

Software Engineer III salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $144,061. While startup companies pay approximate $121,872.

Software Engineer III Salary by Company Size

Company Size Employees Average Salary
Startup 1~50 $121,872
Growth Stage 51~500 $128,894
Established 501~5000 $139,116
Enterprise 5000+ $144,061

Software Engineer III Salary by Industry: Top Paying Sectors

For Software Engineer III roles, the industry you choose can affect earning potential by as much as 27% (the gap between the highest and lowest paying industries). Data shows that the Energy & Utilities and Aerospace & Defense sectors offer the strongest compensation, at 14% above the average. In contrast, Software Engineer positions in Retail & Wholesale or MFG Nondurable typically offer lower base pay, as these industries often view Software Engineer III as a support function rather than a direct revenue driver.

The top paying industries for a Software Engineer III

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Energy & Utilities$146,707$71.014%
Aerospace & Defense$144,133$69.012%
Internet$142,846$69.011%
Biotechnology$141,559$68.010%
Software & Networking$140,272$67.09%

How Education impacts an Software Engineer III's Salary?

Your level of education can impact your salary potential. While many Software Engineer III enter the field with a Bachelor's Degree, higher education can lead to more specialized and higher-paying roles.

According to our 100% employer-reported salary data, the median salary for an Software Engineer III with a Bachelor's Degree is between $122,135 and $128,293.

Software Engineer III Salaries by Degree Level

Typical Education for Software Engineer III
Degree Level % of user with this level of education
No Diploma 0.3%
High School 2.0%
Associates 1.4%
Bachelors 46.1%
Masters 44.2%
Doctorate 6.0%

Software Engineer III Salary: Hourly Rate, Weekly Pay, and Monthly Pay

Understanding how a Software Engineer III's annual salary breaks down can help with budgeting. Below, you can see the average hourly rate, weekly pay, and monthly pay for this role. Use the buttons to switch between different pay periods.

Last Updated on August 01, 2026
$118,378
Average $128,690/year
$139,626
$9,865
Average $10,724/month
$11,636
$2,277
Average $2,475/week
$2,685
$57
Average $62/hour
$67
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $139,626 $11,636 $2,685 $67
Average $128,690 $10,724 $2,475 $62
25th Percentile $118,378 $9,865 $2,277 $57

Software Engineer III Salary Growth & Career Path

For a Software Engineer III, the most direct path to higher earnings is advancing to the Software Engineer IV role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $148,888 - a projected growth of 16% over your current level.

Most common benefits for Software Engineer III

  • Social Security
  • 401 (k)
  • Disability
  • Healthcare
  • Pension
  • Time Off (days)

Common company salaries for Software Engineer III

Here are companies hiring for Software Engineer III and their salaries, click below for more details.

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FAQ about Software Engineer III

1. Where can a Software Engineer III earn the most?

A Software Engineer III's earning potential can vary widely depending on several factors, including location, industry, experience, education, and the specific employer. According to the latest salary data by Salary.com, a Software Engineer III earns the most in San Jose, CA, where the annual salary of a Software Engineer III is $162,317.

2. What is the highest pay for Software Engineer III?

The highest pay for Software Engineer III is $149,583.

3. What is the lowest pay for Software Engineer III?

The lowest pay for Software Engineer III is $108,989.

4. What are the responsibilities of Software Engineer III?

Designs and develops software applications. Gathers and evaluates end-user requirements. Develops build plans. Performs coding, debugging, testing, code review, and troubleshooting throughout the software development lifecycle. Requires a bachelor's degree in computer science, software engineering, or a related field. Typically reports to a manager. Work is generally independent and collaborative in nature. Contributes to moderately complex aspects of a project. Typically requires 4-7 years of related experience.

5. What industry pays the highest salary for Software Engineer III?

The Energy & Utilities industry offers the highest average compensation for Software Engineer III roles, with salaries approximately 14% above the market median.

Where Does Our Salary Data Come From?

Salary.com provides salary estimates, histograms, trends, and comparisons using data from employer job postings and third-party sources.

We offer detailed salary information across multiple percentiles for your reference. (Click here to learn Why the Salary Midpoint Formula Is Crucial for Achieving Pay Equity.)

With the most extensive online, real-time compensation data available, Salary.com helps you pinpoint your exact pay target.

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