As of July 01, 2026, the average salary for a Software Engineer III in the United States is $128,692 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:
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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.
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:
| Job Role | Years of Experience | Average Salary |
|---|---|---|
| Software Engineer I | 0-2 years | $81,657 |
| Software Engineer II | 2-4 years | $105,085 |
| Software Engineer III | 4-7 years | $128,692 |
| Software Engineer IV | 7+ years | $148,892 |
| Software Engineer V | 7-10 years | $171,160 |
What Am I Worth?
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:
Demanded Skills for the Role:
| Skills | Demand Percentage |
|---|---|
| Analysis | 2.68% |
| Software Development | 4.7% |
| Software Engineering | 2.8% |
| Skill | Salary | Salary % Increase |
|---|---|---|
|
Open Source
|
$133,840 |
4%
|
|
Container
|
$132,553 |
3%
|
|
Innovation
|
$132,553 |
3%
|
|
Kubernetes
|
$132,553 |
3%
|
|
Python
|
$131,266 |
2%
|
|
AWS
|
$131,266 |
2%
|
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 $143,941. While startup companies pay approximate $121,731.
| Company Size | Employees | Average Salary |
|---|---|---|
| Startup | 1~50 | $121,731 |
| Growth Stage | 51~500 | $128,750 |
| Established | 501~5000 | $139,002 |
| Enterprise | 5000+ | $143,941 |
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.
| Industry Sector | Average Annual Salary | Average Hourly Rate | Pay vs.Avg |
|---|---|---|---|
| Energy & Utilities | $146,709 | $71.0 | 14% |
| Aerospace & Defense | $144,135 | $69.0 | 12% |
| Internet | $142,848 | $69.0 | 11% |
| Biotechnology | $141,561 | $68.0 | 10% |
| Software & Networking | $140,274 | $67.0 | 9% |
Your level of education can impact your salary potential. While many Software Engineer IIIs enter the field with a Bachelor's Degree degree, higher education can lead to more specialized and higher-paying roles.
According to our 100% employer-reported salary data, the median salary for a Software Engineer III with a Bachelor's Degree is between $122,135 and $128,293).
Software Engineer III Salaries by Degree Level
| 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% |
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 July 01, 2026For 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 $148,892 - a projected growth of 16% over your current level.
Salaries for a Software Engineer III can change over time, reflecting shifts in market demand and the overall economy. The median salary decreased from $126,969 in 2023 to around $125,720 in 2025, reflecting changes in demand, location, experience, and the wider economy. For a detailed analysis of Software Engineer III salary trends, .
| Year | Average Annual Salary |
|---|---|
| 2022 |
View More
|
| 2023 | $126,969 |
| 2024 | $127,220 |
| 2025 | $125,720 |
| 2026 |
View More
|
| 2027 |
View More
|
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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 $162,319.
The highest pay for Software Engineer III is $149,506.
The lowest pay for Software Engineer III is $108,944.
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.
The Energy & Utilities industry offers the highest average compensation for Software Engineer III roles, with salaries approximately 14% above the market median.
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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