This article details the salary and expenses of a mid-level software engineer working at Google in the Bay Area, offering a transparent look at income, deductions, and spending habits.
Salary and Compensation
A typical tech compensation package includes a base salary, an annual bonus, and equity. Let's break down each component:
Base Salary
The base salary for this mid-level software engineer is $193,000. The average base salary for a similar role at Google is around $180,000. The higher salary reflects the higher cost of living and taxes in the Bay Area.
Annual Bonus
Many companies offer annual bonuses, typically ranging from 10% to 15% of the base salary, to incentivize employees. This individual received a 20% bonus this year, amounting to $38,121.
Equity
Equity is a significant part of tech compensation and is designed to encourage long-term employee retention. A set dollar amount in stock is granted upon joining, and it vests over four years. Based on the stock price of March 2025, the value is approximately $84,000. The engineer currently auto-sells their stocks, turning them into cash monthly.
The combined amount of base salary and equity is $277,000, which translates to $23,083 per month.
Taxes and Deductions
Taxes and deductions significantly impact the engineer's take-home pay.
Taxes
The tax rate in the Bay Area, including federal and state taxes, amounts to approximately 37% of income. Furthermore, bonus and equity income are taxed at an even higher rate of 40%, resulting in about $8,750 in monthly taxes.
401k Contribution
The engineer contributes $2,000 per month to a 401k retirement account. Google matches 50% of contributions, up to a certain limit. For 2025, the maximum employee contribution is $23,500, with Google matching up to $11,750.
Benefits
The monthly cost for medical, dental, and vision coverage is approximately $40.
Take-Home Salary
After all taxes and deductions, the take-home salary is $12,293 per month.
Monthly Expenses
Here's a detailed look at the engineer's monthly expenses:
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Rent: $1,190 (living with three roommates in a small room)
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Utilities:
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Garbage: $10
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Internet: $14
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Water and Electricity: Approximately $100 (shared with roommates)
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Transportation:
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Gas: $200
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Car Insurance: $150
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Fastrack (toll lane): $25
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Parking: $100 (San Francisco office parking)
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Personal Development:
- Guitar Lessons: $80 (after Google reimbursement)
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Subscriptions:
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YouTube Premium: $23
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Paramount Plus: $8
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Amazon Prime: $7
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CVS Membership: $5 (includes $10 off a monthly purchase)
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Groceries and Dining: $800 (mostly weekends, as Google provides free lunch and dinner on weekdays)
Investments and Savings
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Investments: $6,000 is invested on the first day of each month into ETFs or individual stocks using a dollar-cost averaging strategy.
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Savings: Remaining funds after expenses and investments are deposited into a high-yield savings account for personal spending, shopping, or travel.
March 2025 Spending Overview
The engineer provides a look at their spending for March 2025:
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Shopping: Higher than usual due to the purchase of a pilot's watch.
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Travel and Vacation: Advance payment for upcoming family travel, with family members expected to reimburse.
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Dining and Drinks: May not be completely accurate due to shared bill payments among friends.
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Bills and Utilities: Includes rent and is considered accurate.
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Auto Transport: In line with expectations.
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Education: In line with expectations.