TechnologyUpdated Q1 2026No state income tax

Director of Engineering Salary
in Austin, TX

Lead engineering teams, set technical direction, and drive product development. Median salary in Austin: $262K/year. Data from BLS, O*NET, and H-1B disclosures.

Median salary
$262K
per year
Take-home: $184K

Salary range in Austin

Entry level (25th)$205,000
Median (50th)$262,000
Senior (75th)$332,000
Top earner (90th)$421,000
Data freshness

Figures represent annual base salary in Austin, Texas. Reviewed by SalaryOptics Editorial Β· How we calculate this β†’

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What the numbers say for Austin

Analysis derived from the salary, COL, tax, and labor-market figures above β€” specific to this role and city.

22% premium vs national median

Director of Engineerings in Austin earn approximately 22% higher than the US national median for this role β€” a $47,000 premium on annual base salary. This reflects Austin's position as a higher-cost labor market where employers must match local wage norms.

Cost-of-living adjusted picture

Adjusted for Austin's cost-of-living index (110), the median Director of Engineering salary buys the equivalent of $238,182 in a US-average-cost city. That's $23,182 more purchasing power than the national median β€” a meaningful real-wage advantage.

No state income tax β€” $24K effective edge

Texas has no state income tax, which is worth roughly $24,366 per year at this salary level compared to a California Director of Engineering on the same gross pay. A Austin Director of Engineering would need to earn $288,864 in California to net the same take-home.

Key facts for Austin

Median salary
$262K
annual
Take-home pay
$184K
after fed/state tax
COL index
110
100 = US avg
State income tax
None
no-tax state
Avg 1BR rent
$1,650
per month
YoY growth
+6.5%
salary trend

Salary forecast: Austin Director of Engineering to 2030

Based on BLS 2022–2032 Employment Projections and WEF Future of Jobs Report 2026. At current growth rates, median salary reaches $262K by 2030.

Salary trend & forecast β€” Austin

Historical (2019–2025) + projected to 2030 based on BLS growth rates

HistoricalProjected
Director of Engineering salary trend 2019–2030PROJECTED β†’$219K$238K$258K$277K$296K201920212023202520272029
2026
$269K
projected
2027
$275K
projected
2028
$282K
projected
2029
$289K
projected
2030
$296K
projected

Projections based on BLS Employment Projections 2022–2032 CAGR and WEF Jobs Report 2025. Not financial advice.

YearProjected median salaryvs today
2027 projected$262,000+$0
2028 projected$262,000+$0
2029 projected$262,000+$0
2030 projected$262,000+$0

Projections use compound annual growth rate (CAGR) from BLS occupational outlook data. Actual salaries may vary.

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Director of Engineering Salary in Austin, Texas: Complete Guide (2026)

The median Director of Engineering salary in Austin, TX is $262,000 per year as of Q1 2026. This figure represents the midpoint of all reported compensation for this role in the Austin–TX metropolitan area, based on data from the Bureau of Labor Statistics Occupational Employment Statistics, H-1B visa disclosures from the Department of Labor, and O*NET occupational data.

Salary range for Director of Engineering in Austin

Entry-level Director of Engineerings in Austin with 0–2 years of experience typically earn between $205,000 and $262,000 annually. Mid-career professionals with 3–7 years command $262,000 to $332,000, while senior-level practitioners with 8+ years of experience regularly earn $332,000 to $421,000 or more.

Cost of living in Austin for Director of Engineerings

Austin has a cost of living index of 110 compared to the US national average of 100. Living costs in Austin are close to the national average. Crucially, Texas has no state income tax β€” giving Austin-based Director of Engineerings an immediate 5–7% take-home pay advantage over workers in states like California (9.3%) or New York (6.85%).

Education requirements for Director of Engineering

Bachelor's in CS or Engineering; 10+ years engineering; management experience. This role is 65% remote-eligible nationally, which can significantly expand the job market for Austin-based professionals.

Director of Engineering salary in nearby cities

CityMedian salaryCOL index
Austin (current)$262K110
Houston$226K91
San Antonio$198K87
Dallas$241K96
Fort Worth$226K93
El Paso$176K82