A degree from the University of Texas is more than an academic achievement; it's a powerful launchpad for a successful and lucrative career. Known for its world-class programs in business, engineering, and computer science, UT consistently produces graduates who are highly sought after by top employers. But what does that mean for your wallet? For graduates of UT Austin, the early-career average salary is approximately $73,200, with mid-career professionals earning an average of $144,300 (Source: Payscale).
This article will break down the salary potential for a UT graduate, exploring the key factors that shape your earnings and providing a data-driven look at what you can expect after graduation.
What Do University of Texas Graduates Do?
It’s impossible to define a single role for a "University of Texas Graduate," as alumni excel across every conceivable industry. The university’s vast and diverse academic offerings create a talent pipeline that feeds into the world's most dynamic sectors.
Graduates from the Cockrell School of Engineering and the Department of Computer Science are a dominant force in the tech and energy industries, taking on roles as software developers, petroleum engineers, and data scientists at companies like Google, Tesla, and ExxonMobil. Meanwhile, alumni from the prestigious McCombs School of Business become financial analysts, management consultants, and marketing leaders at Wall Street firms, major consulting houses, and Fortune 500 companies.
Beyond these well-known paths, UT graduates from the Colleges of Liberal Arts, Natural Sciences, and Communication pursue impactful careers in healthcare, law, public policy, creative media, and education, backed by a powerful, global alumni network of over 500,000 "Longhorns."
Average Salary for University of Texas Graduates
While individual outcomes vary, data provides a strong baseline for what UT graduates can expect to earn.
According to Payscale's 2023-2024 College Salary Report, the University of Texas at Austin provides one of the best returns on investment in the state.
- Average Early-Career Salary (0-5 years experience): $73,200 per year
- Average Mid-Career Salary (10+ years experience): $144,300 per year
This significant jump from early to mid-career highlights the strong foundation a UT degree provides for long-term salary growth and career advancement. Graduates with advanced degrees, such as an MBA, often see even higher starting figures. For example, the full-time MBA Class of 2023 from the McCombs School of Business reported an average starting base salary of $157,756 and an average signing bonus of over $36,000.
Key Factors That Influence Salary
Your salary is not a single number but a dynamic figure influenced by your choices, skills, and the market itself. Here are the most critical factors that determine a UT graduate's earnings.
### Level of Education
While a bachelor's degree from UT opens many high-paying doors, an advanced degree can significantly accelerate your earning potential.
- Bachelor's Degree: This is the foundation for the average salaries mentioned above, with early-career pay often ranging from $60,000 to over $100,000 depending on the major.
- Master's/MBA: As noted, an MBA from a top program like McCombs dramatically increases starting salary. Similarly, a Master of Science in a technical field like Computer Science or Data Science can command a premium salary. According to Salary.com, individuals with a Master's degree in a given field can earn 20-40% more than those with only a Bachelor's.
### Area of Specialization
Your choice of major is arguably the single biggest determinant of your starting salary. UT Austin's top-ranked colleges see a wide disparity in graduate outcomes.
- Engineering & Computer Science: The Cockrell School of Engineering and the CS department consistently produce some of the highest earners. The Cockrell School's Class of 2022-2023 reported an overall average starting salary of $92,618. Specific majors saw even higher figures:
- Computer Science: $123,892
- Electrical and Computer Engineering: $107,381
- Petroleum Engineering: $96,310
- Business: The McCombs School of Business also posts impressive numbers. For undergraduates in the Class of 2023, the average base salary was $88,143, with students specializing in Finance and Management Information Systems (MIS) often earning at the higher end of the scale.
- Natural Sciences and Liberal Arts: While the direct salary link might seem less obvious, these degrees provide critical thinking and analytical skills that are highly valued. Graduates often pursue lucrative paths in tech (as UX researchers or technical writers), data analytics, law, and medicine, though these paths may require further education or specialization.
### Years of Experience
Experience is a universal driver of salary growth. As demonstrated by Payscale data, the leap from an early-career salary ($73,200) to a mid-career salary ($144,300) for UT Austin graduates is substantial. This reflects the accumulation of specialized skills, leadership responsibilities, and a proven track record of success that employers are willing to pay a premium for. An entry-level software engineer may start at $100,000, but a senior or principal engineer with a decade of experience can easily command a total compensation package (salary, bonus, and stock) well over $250,000.
### Geographic Location
Where you work matters. A large percentage of UT graduates remain in Texas's major economic hubs—Austin, Dallas, and Houston—which offer competitive salaries and a moderate cost of living. However, many are recruited to high-cost-of-living tech and finance centers on the coasts.
- Austin, TX: A major tech hub with strong demand for UT talent.
- Houston, TX: The heart of the energy industry, offering high salaries for petroleum and chemical engineers.
- Dallas, TX: A booming center for finance, consulting, and corporate headquarters.
- San Francisco Bay Area / New York City: These locations offer the highest absolute salaries, particularly in tech and finance. According to Salary.com's cost of living calculator, a job paying $100,000 in Austin would need to pay around $170,000 in San Francisco just to maintain the same standard of living, reflecting the salary premium required in these markets.
### Company Type
The type of organization you join will have a profound impact on your compensation structure.
- Big Tech (e.g., Google, Meta, Apple): Offer very high base salaries plus significant compensation in the form of annual bonuses and Restricted Stock Units (RSUs), leading to high total compensation.
- Consulting and Investment Banking: Known for extremely competitive starting salaries and very large performance-based bonuses that can sometimes exceed the base salary.
- Energy Majors (e.g., ExxonMobil, Chevron): Offer robust starting salaries, particularly for engineers, along with excellent benefits and structured career progression.
- Startups: May offer a lower base salary but compensate with potentially valuable stock options. This is a higher-risk, higher-reward path.
Job Outlook
The career outlook for fields popular among UT graduates is exceptionally strong. According to the U.S. Bureau of Labor Statistics (BLS) Occupational Outlook Handbook (2022-2032 projections):
- Software Developers: Employment is projected to grow by 25%, much faster than the average for all occupations.
- Financial Analysts: Employment is projected to grow by 8%, faster than the average.
- Mechanical Engineers: Employment is projected to grow by 10%, also much faster than the average.
These strong growth projections, coupled with UT's stellar reputation, ensure that its graduates will remain in high demand for the foreseeable future.
Conclusion
A degree from the University of Texas is a proven catalyst for a high-earning career. While the average graduate starts with an impressive salary, your ultimate earning potential is in your hands. Key takeaways include:
- Major Matters: Your field of study, especially if it's in engineering, computer science, or business, is the biggest driver of your initial salary.
- Think Long-Term: The significant salary growth from early to mid-career shows that a UT degree provides a foundation for sustained success.
- Location and Industry are Key Levers: Strategically choosing where you work and what industry you enter can dramatically influence your compensation.
For prospective students and recent graduates, the data is clear: the investment in a University of Texas education pays substantial dividends, opening doors to opportunity and a future of financial success. What starts here truly changes the world—and your earning potential along with it.