Geographic wage variation in the United States is enormous, and it’s not simply explained by cost of living. According to BLS OES May 2024 data, workers in Washington state, California, and Washington D.C. earn 26–38% above the national median across all occupations — driven by high concentrations of technology and financial services employment, and the competitive labor markets those industries create. At the other end, Mississippi, West Virginia, and Arkansas wages sit 15–20% below the national median.
Occupation-Specific Variation
The variation is even sharper within specific occupations. A software developer in San Francisco earns a state median around $160,000; the same role in Mississippi pays around $90,000 — a 78% gap. For nurses, New York and California medians are roughly 40% above those in the South. These gaps reflect both industry concentration and cost of living — but cost of living doesn’t scale linearly with wages, which creates genuine arbitrage opportunities for remote workers who can earn coastal salaries while living in lower-cost markets.
The Remote Work Effect
Remote work has begun compressing these gaps, but more slowly than expected. Employers in high-wage states increasingly apply location-based pay adjustments, meaning a remote hire in Austin may earn 80–90% of the San Francisco rate rather than the full amount. The BLS data captures these dynamics with a lag — expect the 2025 and 2026 releases to show continued convergence in software, data, and other fully remote-friendly roles, even as in-person roles in healthcare, construction, and retail maintain their regional wage structures.
How to Use This for Career Decisions
The salary calculator below lets you see your percentile in any state for any of our 116 occupation categories. Use it to compare your current location against states you’re considering — both for job searches and remote work negotiations. A 15% wage increase moving from Texas to Washington is significant, but so is a 15% decrease in housing costs moving the other direction. The calculator gives you the wage side of that equation; local cost-of-living data completes the picture.