Updated · 2026 tax rules · Data: IRS, BLS, BEA, HUD · How we calculate

Petroleum Engineer Salary in Houston, TX

Petroleum Engineers in the Houston-Pasadena-The Woodlands, TX metro area earn a median $169,870 a year — 17% more than the national median. After 2026 taxes, that is $127,372 take-home, or $10,614 a month.

Median salary
$169,870
$81.67 per hour
Typical range
$89,990 – $239,200+
10th to 90th percentile
Jobs in Houston, TX
4,770
12.50× national concentration
▲6.2%
Pay trend: The median for petroleum engineers in Houston, TX rose from $159,990 (May 2024) to $169,870 (May 2025). That beat inflation (2.4%), a real raise of about 3.8%.

Take-home pay calculator

Pre-filled with the median petroleum engineer salary in Houston, TX. Enter your own offer to see your paycheck.

Petroleum Engineer in Houston, TX
Deductions, kids & local tax

2026 tax year. Federal brackets from IRS Rev. Proc. 2025-32.

Your take-home pay
$127,372
per year · effective tax rate 25.0%
$10,614Monthly
$5,307Twice a month
$4,899Every 2 weeks
$61.24Hourly
  • Federal income tax$29,503
  • Social Security (6.2%)$10,532
  • Medicare (1.45%)$2,463
  • Texas income tax$0
  • Take-home pay$127,372

Marginal rate: 24% federal + 0.00% state

Got an offer somewhere else? Compare it with this one after taxes and rent →

Petroleum Engineer pay by experience in Houston, TX

PercentileSalaryHourlyTake-home / yrPer month
10th percentile (entry level)$89,990$43.26$72,138$6,011
25th percentile$126,640$60.88$97,824$8,152
Median (50th)$169,870$81.67$127,372$10,614
75th percentile$225,080$108.21$166,822$13,902
90th percentile (top earners)$288,530+$138.72$207,991$17,333

Wages: BLS Occupational Employment and Wage Statistics, May 2025. Take-home: single filer, Texas resident, 2026 tax rules.

What $169,870 buys in Houston, TX

Prices in Houston, TX are 1.4% lower than the U.S. average (housing costs are 1.05× the national average). Adjusted for local prices, a median petroleum engineer's $127,372 take-home pay has the buying power of $129,143 in a typical American city.

1-bedroom rent
$1,316
12% of monthly take-home
2-bedroom rent
$1,558
15% of monthly take-home
Left after 1-BR rent
$9,298
per month for everything else

Rents: HUD Fair Market Rents, FY2026 (40th-percentile gross rent incl. utilities). Price levels: BEA Regional Price Parities, 2024.

Houston, TX has 12.5× the national concentration of petroleum engineer jobs — a strong local market for this occupation.

Best-paying cities for petroleum engineers, adjusted for cost of living

Houston, TX ranks #1 of 1 metro areas once taxes and local prices are taken into account.

#Metro areaMedian salaryTake-homeReal value*
1Houston, TX $169,870$127,372$129,143

*Take-home pay divided by the BEA price level, so every city is measured in U.S.-average dollars. See all 1 metros →

About the job: petroleum engineers

Devise methods to improve oil and gas extraction and production and determine the need for new or modified tool designs. Oversee drilling and offer technical advice.

Typical education
Bachelor's degree
Work experience
None required
On-the-job training
None
Job outlook, 2025–35
+2.0% (slower than average)

Source: BLS Standard Occupational Classification and Employment Projections, 2025–35.

Frequently asked questions

How much does a petroleum engineer make in Houston, TX?

The median petroleum engineer salary in the Houston-Pasadena-The Woodlands, TX metro area is $169,870 a year, or about $81.67 an hour, according to the Bureau of Labor Statistics (May 2025). The middle half earn between $126,640 and $225,080.

What is a petroleum engineer’s take-home pay in Houston, TX?

On the median $169,870 salary, a single filer living in Texas takes home about $127,372 a year ($10,614 a month) after federal tax, Social Security, Medicare in 2026.

Is Houston, TX a good place to work as a petroleum engineer?

Pay here is 17% above the national median of $144,910. Local prices are 1.4% below the U.S. average, so the take-home pay buys what $129,143 would in a typical U.S. city. Houston, TX ranks #1 of 1 metro areas for cost-of-living-adjusted pay in this job.

Can a petroleum engineer afford rent in Houston, TX?

HUD’s fair market rent for a one-bedroom in Houston, TX is $1,316 a month ($1,558 for two bedrooms) — 12% of a median petroleum engineer’s monthly take-home pay. Financial planners usually suggest keeping rent under about 30%.

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