Well done on receiving a job offer with a pay rate of $100 per hour!
If you are curious about what that translates to as a yearly income and the amount of money you can expect to receive after taxes, you’ve landed on the right page.
- A Full Analysis
- What Will My $100 per Hour Income Look Like After Tax?
- How Does $100 per hour Compare to the National Average?
- What Kind of Living Standard Does $100 per hour Allow?
- What Kind of Jobs Pay $100 per Hour?
- Want More Info on High-Paying Jobs?
- Final Thoughts
So, $100 an hour is how much a year?
Unfortunately, there really isn’t a simple answer to this! So, firstly, I’m going to run through the calculations needed to work out your annual income based on your hourly rate. Additionally, I’ll explore the effect of federal and state taxes on your earnings.
On top of that, I will do the necessary math to break down your daily, weekly, and monthly income and analyze the standard of living that this income level can provide you.
Let’s get calculating!
A Full Analysis
$100 per hour as a yearly income
To arrive at an annual figure, we first have to calculate the total number of hours worked in one year. To do this, we are going to assume a full-time work week of 40 hours. That’s putting in eight hours per day, five days per week.
If you are willing to work every week of the year, all we have to do is multiply our weekly hours by 52:
- 40 hours x 52 weeks = 2,080 hours
So that’s a total of 2080 hours worked in a year. Now we just have to multiply that by our hourly rate:
- 2,080 x $100 = $208,000 per year
So, assuming you are willing to put in a 40-hour workweek without taking a single working day off during the year, you will earn $208,000 for your time.
Not many people earn more than that but more on that later…
However, most people take at least two weeks off per year to maintain basic sanity. And, if you are earning by the hour rather than on a salary basis, you will not receive payment for that time. So for a more realistic picture, we’ll deduct 80 hours (which equals two weeks of work) from our yearly total hours worked and recalculate the yearly income.
- 2,080 – 80 hours = 2,000 hours
- 2,000 x $100 = $200,000 per year
That’s still an outstanding income. After five years, you’ll have made a pretax income of a million bucks! Yeah, it’s not Elon Musk levels, but you’re well into the upper echelon of American wage earners.
$100 per hour as a monthly income
For our calculations, we are going to assume a working month to consist of four weeks. But as you must know, the exact number of working days in any month differs from month to month, as well as in a leap year. However, this averaging is going to give you a fairly accurate idea.
As we’ve also assumed a 40-hour work week, the number of hours worked in a month would be:
- 4 x 40 = 160 hours per month.
Once again, all we have to do is multiply this number by our hourly rate:
- 160 x $100 = $16,000 per month
$100 per hour as a weekly income
So if our working week is 40 hours in total, we simply multiply this by our hourly rate again:
- 40 x $100 = $4,000 per week
$100 per hour as a daily income
Another easy one. We take our 8 hours worked in a day and multiply them by the hourly rate:
- 8 x $100 = $800 per day
What Will My $100 per Hour Income Look Like After Tax?
Unfortunately, a fair size chunk of your $100 per hour income is going to end up in governmental coffers of differing varieties. You have to take Federal and state income taxes, along with FICA payments, into consideration to have any idea of what you’re actually going to take home.
Federal Income Tax
As we’ve already worked out, you will earn $208,000 per year if you work 40 hours per week for 52 weeks of the year. To work out how much Federal Income tax you will pay on this, we need to look at the relevant tax brackets for the current year. An income of $208,000 per year falls across 5 different tax brackets, each taxed at a progressively higher rate.
This table shows how much you will owe in each bracket:
|Current Federal Income Tax Brackets||Tax Rate||Tax Owed|
|$0 to $11,000||10%||$11,000 – $0 = 11,000
11,000 x 0.1
|$11,001 to $44,725||12%||$44,725 – $11,001 = $33,724
$33,724 x 0.12
|$44,726 to $95,375||22%||$95,375 – $44,726 = $50,649
$50,649 x 0.22
|$95,376 to $182,100||24%||$182,100 – $95,376 = $86,724
$86,724 x 0.24
|$182,101 to $231,250||32%||$208,000 – $182,101 = $25,899
$25,899 x 0.32
Now, all we have to do is add those five totals:
- $1,100 + $4,046.88 + $11,142.78 + $20,813.76 + $8,287.68 = $45,391.10 owed in Federal Income tax.
FICA taxes are the contributions you make towards funding Social Security and Medicare. This is going to add up to 7.65% of your yearly income. The good news is that this only applies to the first $160,000 of earnings, so if you are working full-time and earning $100 an hour, a significant chunk of your income will not be subject to FICA taxes.
- $160,000 x 0.0765 = $12,240 owed in FICA taxes
State Income Tax
We can’t give an exact figure on the amount of state income tax you will owe as it varies greatly from state to state. You won’t pay a dime in Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming. And a further 13 states have fixed income taxes regardless of income level, whilst the remainder have graduated income tax brackets.
Either way, if you live in a state that levies an income tax and are earning $208,000 a year, having looked at the different rates, you will be paying, on average, around 6%.
Let’s do the math:
- $208,000 x 0.06 = $ 12,480 owed in state income tax.
Overall tax owed
|State Income Tax||$12,480|
|Federal Income Tax||$45,391.10|
Now, all we have to do is take this figure away from our gross yearly income:
- $208,000 – $70,111.10 = $137,888.90 after-tax income
If you want to know how much that is as a percentage of your income, take the total tax bill and divide it by gross income and then multiply the result by 100:
- $70,111.10 / $208,000 x 100 = 33.707% in total taxes
Let’s now apply that tax rate to the hourly, daily, weekly, and monthly rates when earning $100 per hour.
|Time Period||Pretax rate||After-tax income at 33.707% (Inc. 6% state income tax)|
|Monthly rate (4 Weeks)||$16,000||$10,606.84|
How Does $100 per hour Compare to the National Average?
If you’re putting in a standard 40-hour week every week of the year, then your yearly figure of $208,000 per year means only 4% of American workers are earning more than you.
Anyone earning that kind of money is doing fantastically well in the finance department.
You are, in fact, earning almost four times the average American wage of $54,132, which is the equivalent of $26 per hour.
What Kind of Living Standard Does $100 per hour Allow?
Working full-time at $100 per hour is more than enough to enable a very high standard of living, especially as a single person. You can afford to live in any city across the nation. How lavishly you choose to spend will determine how much money you can save, but the potential is there to reinvest a large portion of your income if you so desire.
This level of income would also be comfortable enough to raise a family on as the single breadwinner within that unit. However, this may not be the case for too much longer with the way prices are rising. But for the time being, it’s still more than enough.
What Kind of Jobs Pay $100 per Hour?
To reach this level of hourly wage, you will normally have to be a qualified professional in positions such as:
A corporate lawyer advises businesses on legal issues such as mergers and acquisitions, intellectual property rights, and employment law. They earn an average hourly wage of $107.
Software architects design and oversee the development of a company’s IT infrastructure. They earn an average hourly wage of $102.
As a management consultant, you advise businesses on improving their operations and increasing profitability. They earn an average hourly wage of $100.
These are just a couple of examples. Of course, there are many more, and it’s going to depend on your level of experience and particular niche, too.
Want More Info on High-Paying Jobs?
If so, take a look at the field of finance. You can browse a variety of job descriptions, such as a Financial Advisor Job Description, a Financial Manager Job Description, or a Director of Finance Job Description.
You wouldn’t start on this rate, but some of these professionals work their way up to earning this rate and up with the right clients. Take a look at the Best Paying Jobs in Finance in 2023.
But that’s just one field…
And if money turns you on…
Ok, back to today’s financial analysis of a $100 hourly rate…
So now you know that if you have managed to reach a level of $100 per hour, then working full-time all year round will earn you a very tidy $208,000 pre-tax income.
Sadly, your tax burden on this amount will run in the region of 34%, reducing that figure to $137,888.90. However, living in a state with no state income tax is one way to reduce this bill. You could quite easily save thousands every year by making that move.
But whatever you choose to do, $100 per hour is a great income that will allow you to live a very comfortable life virtually anywhere in the country.