2026 Regional Benchmark

US IT Budget Benchmarks

US companies spend 5.7 percent of revenue on IT in 2026, the global benchmark anchor. Per-employee spend $9,000 to $14,000 typical, $12,000 to $25,000+ for large-cap technology and financial services. Tech wages 25-40 percent above UK and most European peers, with significant per-state variance.

US Average % of Revenue

5.7%

Global benchmark anchor figure

Per Employee (USD)

$9k - $14k

Mid-market range, before tech sector premium

SF / NYC Premium

+30-60%

On national average tech wages

US Tech Wage Benchmarks

The personnel line is the largest single category in most IT budgets, so US tech wage data anchors the IT budget. The figures below are 2025 national medians from BLS Occupational Employment and Wage Statistics, with high-cost-of-living and lower-cost-of-living adjustments shown alongside.

Role	US Median	SF / NYC Range	Lower-Cost Markets
IT support specialist BLS code 15-1232. Help desk, desktop support.	$50k - $70k	$70k - $95k	$42k - $58k
Network and systems administrator BLS code 15-1244. Median $98k nationally.	$75k - $105k	$105k - $145k	$60k - $85k
Software developer (mid) BLS code 15-1252. Median $132k nationally.	$95k - $135k	$140k - $200k	$75k - $105k
Senior software engineer Big Tech, AI specialists go significantly higher.	$135k - $190k	$200k - $320k+	$110k - $155k
Information security analyst BLS code 15-1212. Median $124k nationally, growing 33 percent through 2032.	$95k - $135k	$130k - $180k	$78k - $105k
CISO Plus equity. Public company CISOs often $500k-$1.5M total comp.	$220k - $400k	$320k - $700k+	$180k - $300k
CIO Plus equity. Fortune 500 CIO total comp $1M-$5M.	$240k - $500k	$350k - $1M+	$200k - $380k

National median wages from BLS Occupational Employment and Wage Statistics May 2025 release. SF / NYC and lower-cost-market figures triangulated with Robert Half Salary Guide 2026, Levels.fyi public data, and Glassdoor compensation reports. Loaded cost (employer payroll taxes, benefits, equipment) typically adds 25-35 percent to gross salary.

US Compliance Cost Lines

US companies face a specific set of compliance cost lines. Below are the dominant ones in 2026, with typical mid-market and enterprise cost ranges.

HIPAA programme

Applies to: Healthcare and healthtech

$200k - tens of millions annually

DPO/Privacy Officer, HITRUST or HIPAA audit, BAA management, encryption, access controls, breach notification readiness.

SOX ITGC compliance

Applies to: US-listed public companies

$300k - $3M+ annually

Sarbanes-Oxley IT general controls, framework, controls testing platforms, audit fees attributable to IT.

PCI-DSS programme

Applies to: Payment-card-handling firms

$200k - $2M+ annually

QSA audit, tokenisation, network segmentation, continuous monitoring.

CCPA / CPRA programme

Applies to: Companies serving California consumers

$50k - $500k+ annually

Privacy notices, consumer rights handling (DSR), data inventory, vendor due diligence. Most companies treat this as part of broader privacy programme.

FedRAMP authorization

Applies to: Cloud / SaaS selling to US federal

$500k - $5M+ first-year

12-18 month authorization process. Annual continuous monitoring after.

CMMC / NIST 800-171

Applies to: DoD supply chain

$100k - $5M+ depending on level

CMMC Level 1-3 assessment, NIST 800-171 controls implementation, controlled unclassified information (CUI) handling.

State privacy laws (multi-state)

Applies to: Companies with multi-state customer base

$100k - $1M+ annually

California (CCPA/CPRA), Virginia (CDPA), Colorado (CPA), Connecticut (CTDPA), Utah (UCPA) and 10+ other state laws as of 2026.

US Per-Region Cost Variance

The IT budget swings 1-3 percentage points of revenue based on where IT staff are located. The dominant driver is tech wage variance.

Region	Tech Wage Premium	Notes
San Francisco Bay Area	+45-60%	Highest tech compensation. Big Tech, AI labs, top startup density.
New York City	+30-50%	Financial services tech premium. NYC fintech and AI scene.
Seattle	+30-45%	Amazon, Microsoft, large eng workforce. State income tax-free.
Boston	+25-40%	Biotech, fintech, AI labs. MIT and Harvard talent base.
Los Angeles / San Diego	+20-30%	Aerospace, defence, growing tech. Lower than SF.
Austin / Denver / Chicago	+5-15%	Growing tech hubs. Better cost of living than coastal tier-1.
Atlanta / Dallas / Phoenix	~National average	Major Sun Belt markets. Strong corporate IT employment.
Lower-cost markets	-10 to -25%	Memphis, Birmingham, Cincinnati, Columbus, Indianapolis, Salt Lake City.

UK IT Budget

4.8 percent average, ONS wage data, GDPR / DORA.

European IT Budget

4.2 percent average, GDPR, DORA, NIS2, AI Act.

IT Staffing Costs

Wage benchmarks across geographies.

Financial Services IT

US universal banks pull up the average.

IT Budget 2026

Year-stamped 2026 benchmarks.

Cybersecurity Budget

SOX, HIPAA, FedRAMP and the security stack.

Calculate your US IT budget

Enter revenue, headcount, and industry into the calculator for a tailored US benchmark.

Use the IT Budget Calculator

Frequently Asked Questions

How much do US companies spend on IT?

US companies spend an average of 5.7 percent of revenue on IT in 2026. This is the global anchor figure that most international benchmarks reference. Per-employee spend lands at $9,000 to $14,000 for typical mid-market US companies, $12,000 to $25,000+ for large-cap technology and financial services. The US is the largest IT spending market globally and consistently sits at or slightly above global averages because of higher tech wages, larger universal banking and mass-retail footprints, and stronger digital intensity in technology and services sectors.

Why is US IT spend higher than UK or European peers?

Three reasons. First, US tech wages are 25 to 40 percent above UK and most European peers per BLS OEWS versus ONS ASHE comparison. Second, US has more universal banks (JPMorgan, Bank of America, Citi, Wells Fargo) and large mass-retail chains (Walmart, Target, Kroger) which pull up the weighted-average IT intensity. Third, US tech sector concentration (Silicon Valley, Seattle, Austin, NYC) drives compensation premiums that filter through to enterprise IT budgets nationally.

What does HIPAA cost in IT budget terms?

HIPAA-related IT spend at a typical US mid-market healthcare or healthtech company runs $200,000 to $1.5 million annually. Components include: privacy and security officer roles, HITRUST certification or HIPAA audit ($80k-$400k annually), business associate agreement (BAA) management, encryption infrastructure, access controls, audit logging, breach notification readiness, training. The variance is huge based on size. Large hospitals and integrated delivery networks spend tens of millions annually on HIPAA-related security.

What does SOX compliance cost?

Sarbanes-Oxley compliance for IT general controls (ITGC) at a US public company typically costs $300,000 to $3 million annually depending on company size and external auditor. Components include: ITGC framework (often based on COBIT or NIST), automated controls testing platforms (AuditBoard, Workiva, Diligent), Big Four audit fees attributable to IT (often $200k-$2M of total audit fee), internal audit team time on ITGC. SOX 404(b) compliance for the IT side typically requires a dedicated SOX program manager plus 2-5 supporting headcount.

What is the per-state US IT cost variance?

The variance follows tech wage and cost of living. San Francisco, NYC, Boston, Seattle and Austin add 30-60 percent premium to national average tech wages. Atlanta, Dallas, Denver, Chicago run roughly at national average. Most southern and midwestern markets (Memphis, Birmingham, Cincinnati, Columbus, Indianapolis) run 10-20 percent below national average. Remote work has compressed but not eliminated this variance. For IT budget planning, expect a 1-3 percentage point swing in IT-as-percentage-of-revenue based on geographic concentration of staff.

What is FedRAMP and what does it cost?

FedRAMP (Federal Risk and Authorization Management Program) is the US federal government's standardised approach to cloud security assessment. Software and SaaS companies that want to sell to US federal agencies must achieve FedRAMP Authorization. Cost varies by impact level. Low impact: $250,000-$750,000 first-year, $100,000-$300,000 annually ongoing. Moderate (most common): $500,000-$2 million first-year, $300,000-$800,000 annually. High: $1 million-$5 million+ first-year, $500,000-$2 million annually. Plus 12-18 months of work to achieve initial authorization.