SOC 15-1252

Software Engineer Salary in Lexington-Fayette, KY (2026)

Data updated · Sources: BLS OEWS May 2025, HUD FY 2027 Fair Market Rents, EPI 2026 Family Budget, 2026 tax tables · Methodology

Tax Tables: 2026 Fed + KY + Municipal
COL Index: 96.93 (-3.1% vs US)
Net Compensation Yield 66.9% Realized
$82,597 / net annual direct deposit
Gross Adjusted $123,510 $59.38/hr
Effective Tax Drag 27.13% Combined Jurisdictions
Marginal Top Bracket 22% Federal Statutory
Total Withheld -$33,503 $1,288.57/check
Category 1 of 6

Wage Benchmarking & After-Tax Paycheck Engine

Dynamic statutory tax calculations based on IRS Publication 15-T and state statutory schedules.

$
2,080 annual statutory base hours $59.38 / hour
0 hrs/wk (+$0/yr)
0 hrs (Standard) 10 hrs OT 20 hrs OT 25 hrs Max
6% (-$7,411/yr)
0% Tax Shield: ~$1,630/yr 15% (IRS limit: $24,500)
Itemized Statutory Withholdings Ledger
Federal Income Tax (IRS)
Progressive 10%–37%
-$16,712
Social Security (FICA OASDI)
Statutory 6.20% (Cap $184,500)
-$7,658
Medicare Hospital Insurance
Statutory 1.45%
-$1,791
Kentucky Individual Income Tax
State Marginal Bracket
-$3,946
Lexington-Fayette occupational and school tax
2.75%
-$3,397
Net Take-Home Annual Realized
$82,597 ($3,176.79 / check)
Category 2 of 6

Lexington-Fayette, KY Software Engineer Wage Distribution

Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) Percentiles & Career Ladders

Your Salary: $123,510
MIDDLE 50% (IQR RANGE) 10th $79.8k 25th $97.7k Median: $123,510 50th (Median) $124k 75th $156k 90th $167k You: $123,510
10th (Entry) $79,770 $38.35/hr
25th (Junior) $97,680 $46.96/hr
50th (Median) $123,510 $59.38/hr
75th (Senior) $156,180 $75.09/hr
90th (Lead/Master) $167,270 $80.42/hr
Career Progression & Licensing Milestones for Software Engineer in Lexington-Fayette, KY
1
Junior Software Engineer (L3)CS degree or equivalent bootcamp/portfolio, foundational data structures
$80,384$38.65/hr · 0-2 Years
2
Mid-Level Software Engineer (L4)Independent feature delivery, system design, CI/CD and DB optimization
$116,262$55.90/hr · 2-5 Years
3
Senior Software Engineer (L5)Architectural leadership, cross-team design reviews, mentorship
$156,227$75.11/hr · 5-8 Years
4
Staff / Principal Engineer (L6)Company-wide tech strategy, distributed system fault tolerance, high scale
$207,091$99.56/hr · 8+ Years
Scaled to the Lexington-Fayette, KY medianView National Software Engineer Salary Data
Category 3 of 6

HUD Fair Market Rent & EPI Living Wage Affordability Index

Evaluating housing affordability vs. net take-home pay in Lexington-Fayette, KY under the HUD 30% housing cost guideline.

Rent-to-Take-Home Ratio (HUD 30% Standard)
18% of Net Income
✓ Passes 30% Housing Affordability Standard
HUD Fair Market Rent (1-Bedroom) $1,205/month Requires minimum annual gross of $48,200
HUD Fair Market Rent (2-Bedroom) $1,416/month Requires minimum annual gross of $56,640
Hourly Living Wage Benchmark (EPI model)
1 Adult Earner: $21.44/hr
Per adult, 2 working adults + 1 child: $20.42/hr
Category 4 of 6

Hourly Wage to Annual & Overtime Matrix

Translating base hourly pay and 1.5× overtime into net take-home pay based on 2,080 annual work hours in Lexington-Fayette, KY.

Swipe horizontally to inspect full pay schedule
Schedule Total Hours/Wk Gross Annual Est. Taxes Net Take-Home Bi-Weekly Check
Standard (40 hrs)40 hrs$123,510-$33,503$82,597$3,176.79
+5h Overtime/Wk45 hrs$146,668-$41,784$96,084$3,695.56
+10h Overtime/Wk50 hrs$169,826-$50,178$109,458$4,209.93
+15h Overtime/Wk55 hrs$192,984-$58,047$123,358$4,744.54
+20h Overtime/Wk60 hrs$216,143-$65,152$138,022$5,308.56
Category 5 of 6

Interstate MSA Relocation & State Tax Migration Comparator

Calculate required compensation, cost-of-living differences, and annual state/local tax savings between two metropolitan areas.

Equivalent Salary in Austin, TX $83,505 Cost of Living Ratio: 69.6%
Annual State & Local Tax Delta +$8,331/yr Tax savings in Austin-Round Rock-San Marcos, TX
Annual Rent Difference (1BR) -$17,676/yr Based on HUD Fair Market Rents
Net Discretionary Cash Flow Impact

Combining state tax savings and annual rent variance when relocating from San Francisco-Oakland-Fremont, CA to Austin-Round Rock-San Marcos, TX.

+$26,007/year
Category 6 of 6 · Executive Economic Briefing
2026 Fiscal Intelligence

Software Engineer in Lexington-Fayette, KY: Compensation & Purchasing Power Briefing (2026)

Estimates compiled from BLS OEWS wages, IRS 2026 withholding rules, HUD Fair Market Rents, and Kentucky tax codes.

Market Baseline
$123,510/yr
$59.38/hr · SOC 15-1252
Statutory Tax Drag
27.13% Effective
-$33,503 in Total Taxes
HUD 1BR Shelter Ratio
18% Net Pay
✓ Passes 30% HUD Rule
Monthly Discretionary
+$5,678/mo
Post-$1,205/mo 1BR Rent

Key Economic & Compensation Takeaways

Statutory Withholding Architecture

Frequently Asked Questions

Verified Government Data Sources & Statutory Attribution

Wages sourced from US Bureau of Labor Statistics (BLS OEWS). Rents calibrated to HUD Fair Market Rents. Tax schedules calibrated to IRS IRC Title 26, IRS Pub 15-T, and state statutory revenue codes.

BLS OEWS May 2025 HUD FY2027 FMR IRS 15-T
Metro Pay Comparison SOC 15-1252
2026 Statutory Thresholds
  • Federal Standard Deduction (Single) $16,100
  • FICA OASDI Wage Base Cap $184,500
  • Pre-Tax 401(k) Elective Deferral $24,500
  • HSA Individual Annual Limit $4,400

Software Engineer in Lexington-Fayette, KY: Market Snapshot

Software Engineer roles in Lexington-Fayette, KY report a median annual wage of $123,510, 9.2% below the national median of $135,980. The 10th to 90th percentile band runs from $79,770 to $167,270, and HUD’s $1,205 monthly one-bedroom fair market rent equals 11.7% of that median gross pay. The single-adult living wage benchmark for the area is $21.44 per hour.

Highest-paying metropolitan areas for Software Engineer

Metropolitan areaMedian annual wageVs this market
San Jose-Sunnyvale-Santa Clara, CA$213,110+72.5%
San Francisco-Oakland-Fremont, CA$186,640+51.1%
Seattle-Tacoma-Bellevue, WA$167,280+35.4%
New York-Newark-Jersey City, NY-NJ$166,830+35.1%
Boston-Cambridge-Newton, MA-NH$166,090+34.5%
Boulder, CO$164,560+33.2%
San Diego-Chula Vista-Carlsbad, CA$163,270+32.2%
Bridgeport-Stamford-Danbury, CT$162,650+31.7%
Manchester-Nashua, NH$162,090+31.2%
Los Angeles-Long Beach-Anaheim, CA$160,920+30.3%

Top-paying occupations benchmarked in Lexington-Fayette, KY

OccupationMedian annual wageMedian hourly
Chief Executives$179,520$86.31/hr
Natural Sciences Managers$161,450$77.62/hr
Architectural and Engineering Managers$161,170$77.49/hr
Computer and Information Systems Managers$144,160$69.31/hr
Fundraising Managers$140,090$67.35/hr
Education Administrators, Postsecondary$137,250$65.99/hr
Financial Manager$135,760$65.27/hr
Purchasing Managers$128,910$61.98/hr
Marketing Managers$127,040$61.08/hr
Sales Managers$124,860$60.03/hr

Wage data: U.S. Bureau of Labor Statistics OEWS May 2025, 377 metropolitan areas publishing this occupation; HUD FY2027 Fair Market Rents; EPI Family Budget Calculator. Taxes use 2026 federal and state rules. Data last updated .

Regional Labor Market & Career Mobility Network

Explore adjacent occupations and neighboring metropolitan wage benchmarks for peer compensation analysis.

Software Engineer Salary in Lexington-Fayette, KY (2026) Overview

Software Engineer median pay in Lexington-Fayette, KY is $123,510 a year ($59.38/hr). See take-home pay after 2026 taxes, BLS wage percentiles, HUD rents. Official 2026 economic data for Software Engineer in Lexington-Fayette, KY compiled from Bureau of Labor Statistics OEWS surveys, HUD Fair Market Rents, and statutory tax codes.

Quick answers
What is the median salary for a Software Engineer in Lexington-Fayette, KY?

The median annual wage is $123,510 ($59.38 per hour). The middle 80% of earners make between $79,770 and $167,270. Source: BLS OEWS (May 2025).

What is the take-home pay for a Software Engineer in Lexington-Fayette, KY after taxes?

On the median wage of $123,510, a single filer with no pre-tax deductions takes home about $88,083 a year ($7,340 a month) after $35,427 in federal, FICA, state and local taxes, an effective rate of 28.68%, using 2026 tax rules.