Median Salary
$126,649
Vs National Avg
Hourly Wage
$60.89
Dollars / Hr
Workforce
0.7k
Total Jobs
Growth
+17%
10-Year Outlook
The Salary Picture: Where Allentown Stands
As a local whoโs watched the tech scene grow from a handful of startups to a solid mid-market hub, I can tell you Allentown offers a compelling salary-to-cost ratio. The median salary for Software Developers here is $126,649/year, which breaks down to an hourly rate of $60.89/hour. While this is slightly below the national average of $127,260/year, the difference is negligible when you factor in Allentown's cost of living, which sits at 98.4 (just 1.6% above the U.S. average). With 749 jobs currently in the metro area and a 10-year job growth projection of 17%, the market is stable and expanding, particularly in healthcare IT, manufacturing software (the Lehigh Valley is a manufacturing powerhouse), and logistics technology.
Hereโs how that median salary typically breaks down by experience level. Note that these are realistic local estimates based on current job postings and industry data.
| Experience Level | Typical Years | Estimated Annual Salary | Hourly Equivalent |
|---|---|---|---|
| Entry-Level | 0-2 years | $75,000 - $90,000 | $36.06 - $43.27 |
| Mid-Level | 3-5 years | $95,000 - $120,000 | $45.67 - $57.69 |
| Senior-Level | 6-9 years | $125,000 - $155,000 | $60.10 - $74.52 |
| Expert/Lead | 10+ years | $155,000 - $190,000+ | $74.52 - $91.35+ |
How does Allentown stack up against other Pennsylvania tech hubs?
- Philadelphia: Salaries are about 15-20% higher, but the cost of living (especially rent) is significantly steeper. Commuting from Allentown to Philly is feasible but taxing (75-90 minutes each way).
- Pittsburgh: Similar salary ranges, but with a different industrial focus (more robotics, AI, and fintech). Pittsburgh's cost of living is comparable.
- Harrisburg (Hershey): Lower salaries (by ~10-15%) and a smaller job market, but even lower cost of living.
- Reading/Lancaster: Salaries are generally lower, and the tech job scene is less dense. Allentown serves as the northern anchor of the Lehigh Valley's tech corridor.
Insider Tip: The $126,649 median is heavily weighted toward developers at major employers like Olympus, Olympus America, or the healthcare systems. For pure-play software companies and startups, senior roles can push into the $150,000+ range, but these are fewer in number. Your negotiation leverage comes from specializing in high-demand stacks (cloud, DevOps, data engineering) rather than generalist roles.
๐ Compensation Analysis
๐ Earning Potential
Wage War Room
Real purchasing power breakdown
Select a city above to see who really wins the salary war.
The Real Take-Home: After Taxes and Rent
Let's ground that $126,649 median salary in reality. Using standard assumptions (single filer, Pennsylvania state tax of 3.07%, federal tax, FICA), your take-home pay would be approximately $92,000 - $95,000 annually, or $7,667 - $7,917 per month before health insurance or 401(k) deductions.
Now, let's build a monthly budget. The average 1BR rent in Allentown is $1,137/month. I'll use a slightly higher figure for a nicer area, as many developers opt for walkable neighborhoods.
| Expense Category | Estimated Cost | Notes |
|---|---|---|
| Take-Home Pay (Monthly) | $7,750 | Mid-range estimate after taxes |
| Rent (1BR, Central Allentown) | $1,250 | For a modern unit in West End or Downtown |
| Utilities (Electric, Gas, Internet) | $180 | Average for a 1BR |
| Groceries | $450 | For one person |
| Car Payment/Insurance/Gas | $550 | Assumes a modest car loan; public transit is limited |
| Health Insurance (Employer) | $250 | Varies widely; often subsidized |
| Retirement Savings (10%) | $1,055 | 401(k) contribution |
| Discretionary Spending | $1,015 | Dining out, entertainment, hobbies, travel |
| Remaining Buffer | $0 | This is a tight but realistic budget. |
Can you afford to buy a home?
Yes, but with caveats. The median home price in the Allentown area is roughly $275,000. With a 10% down payment ($27,500), a 30-year mortgage at 6.5% interest would have a monthly payment of approximately $1,550 (including taxes and insurance). This is only about $300 more than your rent budget. If you can save the down payment (which may take 2-3 years on this salary), and have a dual-income household, homeownership is very attainable. Many developers buy in the suburbs like Lower Macungie or South Whitehall for more space and better schools.
Insider Tip: Property taxes in the Lehigh Valley are not cheap. For a $275,000 home, expect $5,000 - $7,000 annually in property taxes, which adds $400-$580 to your monthly mortgage payment. Factor this in from the start.
๐ฐ Monthly Budget
๐ Snapshot
Where the Jobs Are: Allentown's Major Employers
The job market here is anchored by three pillars: healthcare, manufacturing, and logistics. Pure software companies exist but are smaller. Hereโs where youโll find openings:
- Olympus America (Central Allentown): The biggest local tech employer. They develop software for medical devices, endoscopes, and lab systems. Hiring trends show a strong need for C++, C#, Python developers with FDA regulatory experience. Salaries here often anchor the local median.
- St. Lukeโs University Health Network (Bethlehem & Allentown): With a massive new campus in upper Allentown, St. Luke's is a huge employer for healthcare IT, Epic EHR developers, and data analysts. They offer stable salaries and excellent benefits. Hiring is consistent due to continuous expansion.
- Lehigh Valley Hospital & Health Network (Allentown): The main rival to St. Luke's, with a sprawling campus in the city. Similar needs in healthcare IT, but with a heavier focus on Epic and Allscripts systems. Their IT division is large and has many cross-functional teams.
- Air Products & Chemicals (Corporate HQ, Trexlertown): A global industrial gas company with a significant software development center. They hire for supply chain optimization, IoT (for plant monitoring), and enterprise software. This is a great spot for developers interested in industrial tech.
- Victaulic (Easton): A global leader in mechanical pipe joining systems. Their "Smart Factory" initiatives drive demand for developers in IoT, MES (Manufacturing Execution Systems), and data science for predictive maintenance.
- PPL Corporation (Allentown): The regional utility company. They have a growing IT department focused on grid modernization, smart meter data analytics, and customer portal development. Stable, with good work-life balance.
- Startups & Midsize Firms: Companies like Coda, Inc. (military simulation) and B. Braun Medical (healthcare devices) have smaller but growing tech teams. The Allentown Economic Development Corporation and Lehigh Valley Tech are good resources to find newer companies.
Hiring Trend Insight: There's a noticeable shift away from generalist developers toward specialists. Cloud (AWS/Azure) certifications, DevOps/SRE experience, and data engineering skills command a 10-15% premium over the median salary. The healthcare sector is the most stable, while manufacturing is investing heavily in digital transformation.
Getting Licensed in PA
Pennsylvania does not require a state license to practice as a Software Developer. There is no equivalent to a PE (Professional Engineer) license for software. However, there are specific requirements and best practices:
- State-Specific Requirements: None for general software development. If you work in a regulated industry (like medical devices at Olympus or Air Products), your employer will require adherence to industry standards (ISO 13485, FDA 21 CFR Part 11), but this is company-specific training, not a state license.
- Professional Certifications: While not state-mandated, certifications from AWS, Microsoft Azure, Google Cloud, Scrum Alliance (CSM), or (ISC)ยฒ (CISSP) are highly valued by local employers and can significantly boost your salary.
- Costs & Timeline:
- AWS Solutions Architect Associate: Exam fee ~$150. Study time: 2-3 months.
- Certified ScrumMaster: Course fee ~$1,200-$1,600. 2-day course + exam.
- Timeline: You can start applying for jobs immediately with a solid portfolio. Adding a cloud certification within 6 months of arrival can increase your starting salary offer by $5,000-$10,000.
Insider Tip: The local tech community is active. Join the Lehigh Valley Technology Meetup or the Allentown Software Developers group on LinkedIn. No license is needed, but local connections are the best way to hear about unposted jobs.
Best Neighborhoods for Software Developers
Allentown's neighborhoods vary drastically. Your choice depends on commute tolerance and lifestyle.
- Center City / West End: The most walkable area. Close to Olympus, St. Luke's, and the new PPL Arena. Mix of historic homes and new luxury apartments. Rent for a 1BR is $1,300 - $1,600. Best for young professionals who want a city vibe without the Philly price tag. Commute: 5-15 minutes to major employers.
- South Allentown / Emmaus: A quiet, suburban feel with great parks and schools. More single-family homes. Rent is lower ($1,000 - $1,300 for a 1BR or small house). Popular with developers starting families. Commute: 15-25 minutes to most employers.
- Lower Macungie / Trexlertown: The affluent suburb where many Air Products employees live. Very family-oriented, top-rated schools, but car-dependent. Rent for a modern 1BR is $1,400 - $1,700. Commute: 10-20 minutes to Air Products, 20-30 to Allentown core.
- Bethlehem (South Side): Technically a separate city, but a 10-minute drive from Allentown. Home to Lehigh University and a vibrant arts scene. Younger demographic, great bars and restaurants. Rent is similar to Allentown's West End ($1,250 - $1,550). Commute: 10-20 minutes to Allentown employers.
- Whitehall / Coplay: A blue-collar suburb with a low cost of living. Rent is very affordable ($900 - $1,200). It's less "techy" but offers a practical base if you're budget-conscious. Commute: 15-25 minutes anywhere in the Lehigh Valley.
Insider Tip: Traffic on Route 22 and Route 309 can be congested during rush hour. If your job is in Allentown's city center, living in the West End or South Allentown gives you the shortest, most predictable commute.
The Long Game: Career Growth
Allentown is a fantastic place to build a 10-year career without the burnout of a major tech hub. The 10-year job growth of 17% is solid, but your personal growth depends on specialization.
- Specialty Premiums:
- Cloud/DevOps Engineer: +15-20% over median. Local companies are aggressively migrating to AWS and Azure.
- Healthcare Data Specialist: +10-15%. Expertise in HL7, FHIR, and Epic is gold.
- IoT/Embedded Systems: +10%. For roles at Air Products, Victaulic, or Olympus medical devices.
- Senior Full-Stack (React/.NET): +5-10%. The most common, but you need leadership skills to command the top end.
- Advancement Paths: The typical path is: Junior Developer -> Mid-Level -> Senior Developer -> Tech Lead or Engineering Manager. There are fewer pure "Principal Engineer" individual contributor roles, so moving into management is common for the highest salaries. Many leaders at Olympus and the hospitals started as developers here.
- 10-Year Outlook: The tech job market in Allentown will likely grow steadily, mirroring the national 17% projection. The biggest opportunities will be in healthcare IT (St. Luke's, LVHN) and industrial IoT (Air Products, Victaulic). Developers who can bridge business problems with technology will thrive. Remote work has made the area more attractive, allowing residents to earn Philadelphia or national salaries while living in Allentown's lower-cost environment.
The Verdict: Is Allentown Right for You?
| Pros | Cons |
|---|---|
| Excellent salary-to-cost ratio. A $126,649 salary goes much further here than in Philly or NYC. | Limited "pure tech" scene. Fewer startups and FAANG-type companies. Career hopping for a 50% raise is rare. |
| Stable, diverse job market. Healthcare and manufacturing provide recession-resistant tech roles. | Car-centric. Public transit is weak; you'll need a car. Walkable neighborhoods are limited. |
| Short, manageable commutes. Most jobs are within a 20-minute drive. | Cultural scene is modest. Compared to a major city, nightlife and arts are smaller. |
| Family-friendly suburbs. Great schools, low crime, and access to parks (Dorney Park, Lehigh Parkway). | Weather. Winters can be gray and snowy; summers are humid. |
| Gateway to nature. Quick access to the Poconos, Appalachian Trail, and NYC (90-minute drive). | Lower ceiling for extreme earnings. You won't hit Silicon Valley-level salaries without remote work. |
Final Recommendation:
Allentown is an ideal choice for software developers in the mid-career stage (3-10 years of experience) who value stability, affordability, and quality of life over the constant hustle of a major tech hub. It's perfect for those looking to buy a home, start a family, or escape the high cost of living on the coasts. If you're an early-career developer seeking a vibrant startup culture and rapid job-hopping, you might feel constrained. For experts who can command a remote national salary while living here, it's a financial no-brainer. For most, it's a place to build a solid, comfortable, and growing career.
FAQs
Q: Is it hard to find a job as a software developer in Allentown?
A: No, if you're flexible. The market is smaller than in major cities, so it may take 1-3 months to land a role. Having experience in healthcare, manufacturing, or cloud technologies will significantly speed up your search. The 749 current openings (BLS data) indicate steady demand.
Q: What's the tech community like?
A: It's tight-knit and supportive. The Lehigh Valley Technology Meetup and various LinkedIn groups host regular events. While not as large as Philadelphia's, it's easy to network and get to know people. Major conferences like TechBash are within driving distance.
Q: How does the cost of living index of 98.4 actually translate?
A: It means for every $100 you spend nationally, you'll spend about $98.40 in Allentown. The biggest savings come from housing (rent/mortgage) and transportation. Groceries and utilities are roughly on par with the national average.
Q: Can I work remotely for a company outside Pennsylvania?
A: Absolutely. Many Allentown developers work remotely for Philadelphia, New York, or even West Coast companies. This allows you to potentially earn a higher salary ($140,000+) while enjoying Allentown's lower cost of living. Just be prepared to handle Pennsylvania state income tax, which your employer will withhold.
Q: What's the best way to prepare for a move to Allentown?
A: 1) Get your resume and LinkedIn profile polished. 2) Start applying 2-3 months before your move. 3) If possible, secure a job firstโit makes the move and budgeting easier. 4) Join local tech groups on LinkedIn to get a feel for the market and connect with potential colleagues.
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