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2026 Salary Data — Memphis, TN
Updated April 28, 2026

AI Engineer Salary in Memphis: $163K Median

AI Engineers in Memphis, TN earn between $106K and $282K per year.

That's -12% below the US national median of $185,000 for this role.

Quick Answer

As of April 2026, the median AI Engineer salary in Memphis, TN is $162,800 per year — -12% below the US national median of $185,000. Salaries range from $105,820 (entry, 25th percentile) to $281,600 (90th percentile). AI Engineers in Memphis earned approximately $26,258 in 2025, representing 520.0% year-over-year growth.

Median
$162,800
+520.0% YoY · $13,567/mo
Entry
$126,984
0–2 years
Experienced
$214,896
5+ years
Top 10%
$281,600
Senior/lead
AI Engineer Salary — Memphis vs Nearby
Memphis
$163K
Nashville
$185K
-12% vs Memphis
El Paso
$157K
+4% vs Memphis
Tulsa
$163K
+0% vs Memphis

Free ATS scan · Memphis employers · Results in 60 seconds

About AI Engineers in Memphis

AI engineers specialize in building, fine-tuning, and deploying machine learning and large language model systems. They focus on LLMs, RAG pipelines, agents, and production AI infrastructure.

Core Responsibilities

  • Build and fine-tune LLM applications
  • Design RAG and agent architectures
  • Deploy AI systems to production
  • Evaluate model performance and safety
  • Optimize inference cost and latency

Education & Certifications

Typical path: Master's or PhD preferred (Bachelor's with strong AI portfolio acceptable)

In-demand certifications

TensorFlow DeveloperAWS ML SpecialtyGoogle Cloud ML EngineerNVIDIA Deep Learning Institute

Memphis Job Market

Logistics capital home to FedEx headquarters with major healthcare presence.

Population
633K
Cost of Living
85
vs 100 US avg
Unemployment
4.5%
Median Home
$175K

Top Industries in Memphis

Logistics (FedEx)HealthcareManufacturingMusic/Tourism

Top Employers Hiring AI Engineers

Major employers active in Memphis or hiring remotely from this metro.

OpenAI
Anthropic
Google DeepMind
Meta AI
Microsoft Research
NVIDIA
Cohere
Mistral AI

All major employers use ATS software.

Workday, Greenhouse, Taleo, and iCIMS auto-screen 75% of resumes before a human ever sees them. Scan your resume free to see your match rate.

2026 Hot Skills & Resume Keywords

Skills that command salary premiums and pass ATS keyword filters.

Hottest 2026 Skills

These appear in the highest-paying AI Engineer listings.

LLMsRAGfine-tuningvector databasestransformersLangChain/LlamaIndexPyTorchagentic systems

ATS Resume Keywords

Include these naturally throughout your resume.

LLMsPyTorchRAGfine-tuningtransformersvector databasesLangChainPythonCUDAprompt engineering
Career Outlook
+26% Growth Projected (2024-2034)

AI engineer roles are among the fastest-growing in tech, projected to grow 26%+ through 2034. Frontier labs paying $400K+ for senior LLM specialists in 2026.

AI Engineer Salary Breakdown — Memphis

PeriodEntry (25th)Median (50th)Top (90th)
Annual$105,820$162,800$281,600
Monthly$8,818$13,567$23,467
Weekly$2,035$3,131$5,415
Hourly$51$78$135

Based on 2080 working hours/year. Local figures derived from BLS Occupational Employment and Wage Statistics national median ($185,000) adjusted for Memphis's cost-of-living multiplier (0.88×, sourced from BEA Regional Price Parities).

AI Engineer Take-Home Pay in Memphis

After federal, state and FICA taxes — single filer, standard deduction.

Net Annual Take-Home
$121,930.8
Per month$10,161
Biweekly paycheck$4,690
Effective tax rate25.1%

Tax Breakdown on $162,800

Gross salary$162,800
Federal income tax−$28,415
Tennessee state tax−$0
FICA (Social Security + Medicare)−$12,454.2
Take-home (net)$121,930.8

Estimates assume single filer, standard deduction ($14,600 for 2026), no 401(k)/HSA/dependents. Actual take-home varies with deductions, dependents, and benefits elections. Not tax advice.

AI Engineer Salary by Experience — Memphis

Career-stage progression for AI Engineers in Memphis.

ExperienceAnnual Salary
0–1 yr$116,825
2–3 yr$126,984
4–6 yr$170,940
7–10 yr$214,896
11–15 yr$253,577
15+ yr$248,248

Curve derived from BLS percentile data adjusted for Memphis's 0.88× cost-of-living multiplier. Highlighted row = 7–10 year experienced level.

Year-Over-Year Trend

+520.0% vs 2025

2025 median:$26,258
2026 median:$162,800
Change:+$136,542

Technology sector growth driven by demand for LLMs and RAG.

Is This A Good Salary?

Excellent

Adjusted for local cost of living, this salary delivers top-tier real purchasing power - well above what the same nominal pay would buy in most US metros. Strong savings, home-buying, and discretionary spending are all realistic.

COL-Adjusted Purchasing Power
$191,529
Comfortable lifestyle with strong savings potential - the median paycheck stretches well above the national average here.

How to Negotiate Your AI Engineer Salary in Memphis

Walk-away anchor: $141,565 (offers below this are below market for Memphis).

Leverage Points

  • Reference levels.fyi total compensation data for your level (L4/L5/etc.) at comparable companies
  • Quantify recent shipped impact: latency reduced, revenue driven, on-call incidents resolved
  • Hold a competing offer (or credible interview pipeline) before the salary conversation
  • Highlight in-demand skill premiums: LLMs, Kubernetes, Rust, distributed systems

Beyond Base Salary, Negotiate

Sign-on bonus ($25K-$100K is standard at Big Tech)RSU refreshers and accelerated vesting cliffsRemote/hybrid flexibility and home-office stipendAnnual learning budget and conference allowanceSabbatical eligibility after 4-5 years

What To Say

"Based on levels.fyi data and what I'm seeing from comparable offers, total compensation for this level is closer to $X base plus equity. Can we close the gap on base or front-load the RSU grant?"

Anchor on $215K–$282K for experienced roles, citing Memphis market data and your specific LLMs/RAG expertise.

AI Engineer Salary FAQ — Memphis

What is the average AI Engineer salary in Memphis, TN?
The average AI Engineer salary in Memphis is $162,800 per year as of April 2026 — $13,567/month, $3,131/week, or about $78/hour. Salaries range from $105,820 (entry, 25th percentile) up to $281,600 (experienced, 90th percentile). Source: BLS Occupational Employment and Wage Statistics adjusted for Memphis's cost-of-living multiplier (0.88×).
Is $162,800 a good AI Engineer salary in Memphis?
Excellent. Adjusted for local cost of living, this salary delivers top-tier real purchasing power - well above what the same nominal pay would buy in most US metros. Strong savings, home-buying, and discretionary spending are all realistic. Memphis's cost-of-living index is 85 (vs 100 nationally), giving $162,800 a real purchasing power of approximately $191,529 in national terms. Comfortable lifestyle with strong savings potential - the median paycheck stretches well above the national average here.
Can you live on $162,800 in Memphis?
Median local pay typically supports a single-earner family of four with a starter home, modest college savings, and standard healthcare costs covered. Stay under 25% of pre-tax income on rent. In this market, that is realistic on most professional salaries and leaves room for retirement contributions. For Memphis specifically (median home price $175,000), a $162,800 salary supports a comfortable lifestyle.
Is $162,800 enough for a single person in Memphis?
A single adult in Memphis typically needs ~$38,250 for a comfortable lifestyle (housing, food, transport, healthcare, modest savings). A $162,800 salary is well above that threshold — a single person can live comfortably with significant savings room.
Is $162,800 enough for a couple in Memphis?
A couple (one earner) in Memphis typically needs ~$61,200 for a comfortable lifestyle. A $162,800 salary as the sole household income is sufficient — enabling moderate housing, savings, and discretionary spending. Two earners at $162,800 each ($325,600 household) provides solid middle-class comfort.
Is $162,800 enough for a family of 4 in Memphis?
A family of 4 (one earner) in Memphis typically needs ~$93,500 for a comfortable middle-class lifestyle (housing for 4, childcare/school, food, healthcare, transport, savings). A $162,800 salary as the sole household income is sufficient — a family of 4 can afford this metro on a single AI Engineer income with prudent budgeting. Childcare costs in Memphis typically run $13K-$24K per child per year.
What is the take-home pay for a AI Engineer in Memphis?
On a $162,800 AI Engineer salary in Memphis, TN, you take home approximately $121,930.8 per year ($10,161/month, $4,690 per biweekly paycheck) after taxes. Breakdown: federal $28,415, state $0, FICA $12,454.2. Effective tax rate: 25.1%. (Single filer, standard deduction, no other adjustments.)
How much do AI Engineers in Memphis earn compared to the US average?
AI Engineers in Memphis earn approximately 12% less than the US national median for this role ($185,000 nationally vs $162,800 in Memphis). However, Memphis's cost-of-living index of 85 means real purchasing power is approximately $191,529 when adjusted for local prices.
What does an entry-level AI Engineer earn in Memphis?
Entry-level AI Engineers in Memphis typically start at around $126,984 (0–2 years experience). With 5+ years, AI Engineers earn $214,896 or more. Top earners (90th percentile) reach $281,600+, typically at senior or lead levels with specialized skills.
Did AI Engineer salaries in Memphis increase in 2026?
Yes — AI Engineer salaries in Memphis grew approximately 520.0% year-over-year, from $26,258 in 2025 to $162,800 in 2026 (+$136,542). This reflects the broader Technology sector's compensation trend, driven by LLMs and RAG demand.
What's the job outlook for AI Engineers in Memphis?
AI engineer roles are among the fastest-growing in tech, projected to grow 26%+ through 2034. Frontier labs paying $400K+ for senior LLM specialists in 2026. Memphis's top industries include Logistics (FedEx), Healthcare, Manufacturing, and the metro's current unemployment rate is 4.5% — steady demand for skilled workers.
What skills are most in demand for AI Engineers in 2026?
The hottest 2026 skills for AI Engineers are: LLMs, RAG, fine-tuning, vector databases, transformers, LangChain/LlamaIndex, PyTorch, agentic systems. ATS systems specifically scan for these keywords. Adding them to your resume — naturally and in context — significantly improves your match rate with employers in Memphis.
Who are the top employers hiring AI Engineers in Memphis?
Top employers hiring AI Engineers in or near Memphis include: OpenAI, Anthropic, Google DeepMind, Meta AI, Microsoft Research, NVIDIA. Most use ATS software (Workday, Greenhouse, Taleo, iCIMS) to screen resumes — meaning your resume must be ATS-optimized to even get a human reader.
How do I negotiate a higher AI Engineer salary in Memphis?
Based on levels.fyi data and what I'm seeing from comparable offers, total compensation for this level is closer to $X base plus equity. Can we close the gap on base or front-load the RSU grant? Key leverage points for Technology negotiations: Reference levels.fyi total compensation data for your level (L4/L5/etc.) at comparable companies; Quantify recent shipped impact: latency reduced, revenue driven, on-call incidents resolved; Hold a competing offer (or credible interview pipeline) before the salary conversation. Beyond base salary, negotiate for: Sign-on bonus ($25K-$100K is standard at Big Tech), RSU refreshers and accelerated vesting cliffs, Remote/hybrid flexibility and home-office stipend, Annual learning budget and conference allowance.
How can I increase my AI Engineer salary in Memphis?
Three highest-leverage moves: (1) Add 2026's hot skills (LLMs, RAG, fine-tuning) — they command 15-30% premiums. (2) Get a recognized certification (e.g., TensorFlow Developer or AWS ML Specialty). (3) Tailor your resume to each role's keywords — CVCraft's ATS scanner shows you exactly what's missing.
What education do I need to become a AI Engineer in Memphis?
Master's or PhD preferred (Bachelor's with strong AI portfolio acceptable) is the typical path. However, Memphis's competitive market increasingly values demonstrable skills, portfolios, and certifications alongside (or in place of) traditional degrees — particularly for Technology roles.

Methodology & Sources

AI Engineer salary figures for Memphis are computed by adjusting the BLS national median ($185,000) by Memphis's cost-of-living multiplier of 0.88× — a composite of regional wage data and price parities. Year-over-year change (520.0%) reflects the Technology sector's 2025-2026 wage growth per BLS Employment Cost Index trends. Last reviewed April 28, 2026.

Data Sources

Related Roles in Memphis

Machine Learning Engineer →Data Scientist →Software Engineer →Product Manager →Web Developer →DevOps Engineer →

AI Engineer Salary in Other Cities

Jacksonville, FL$170KEl Paso, TX$157KNashville, TN$185KOklahoma City, OK$163KLouisville, KY$168KAlbuquerque, NM$167KTucson, AZ$167KTulsa, OK$163K

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