As you move up in the wonderful world of employment, it might get a little confusing when looking at job openings and offerings. Because sometimes, understanding a salary’s potential compared to what you currently make can be a little tricky. For instance, a great opportunity has been advertised at $29 an hour.
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But $29 an hour is how much a year, exactly?
Well, I’m going to break down potential salary figures before and after taxes as well as hourly, daily, weekly, monthly, and annually. This gives a better understanding of those hourly rates and if it will be enough for you to simply survive or actually thrive on, hopefully.
So, $29 An Hour is How Much a Year?
$29 an hour is a really good rate. If you are like most Americans and find yourself working the standard 8-hour days, five days a week, then you will accumulate 40 payable hours each week.
To work out how much that is a year, we will multiply the hourly rate by the number of hours worked each year.
Let’s do the total amount of hours first…
So, a regular work schedule will see you working 40 hours a week. Let’s multiply that by 52, the number of weeks in a year.
40 x 52 = 2080.
Then, we take $29 (what you make an hour) and multiply it by 2080 (working hours in a year), which gives us $60,320.
So, if you are making $29 an hour, it equals just over $60K a year.
That’s a competitive salary, but…
Of course, this is before taxes are garnished from it. And we will explore what these figures look like after they are removed. Basically, it’s what will arrive in your checking account each time you are paid.
$29 an Hour Broken Down
Let’s break that down a bit further, with what that looks like monthly, weekly, and daily as well, again, before taxes.
You are making: $29 an hour.
That works out to be $232 a day, $1,160 a week, $5,026 per month, and then $60,320 per year.
Taxes, taxes, and even more taxes…
Well, firstly, what is a tax? According to the online Oxford Dictionary, a tax is “a compulsory contribution to state revenue, which is levied by the US government on workers’ income and to business profits, or is added to the cost of some goods, transactions, and services.”
And in the United States, there are a lot of different taxes that your income is susceptible to. These include the likes of Federal Income Tax, State Income Tax, Local Tax, Medicare Tax along with Social Security Taxes.
But wait, there’s more…
There are also a few others, like Worker’s Compensation Taxes, plus State Disability Insurance, State Unemployment Insurance, and State Family Leave Insurance Tax. These last four types of taxes are usually minimal, though. And some are not even applicable, so we will be leaving them mostly out of the equation. However, the aforementioned taxes are standard and apply to everyone who lives in a state that enforces taxes.
For example…
Let’s take a look at your monthly take-home pay if you are based in Los Angeles, California. Before taxes, you are due to receive $5,026 for your 40-hour working week.
In California, taxes typically equate to these types of percentages:
- $741 – Federal Income Tax – or 14.73% of your paycheck.
- $160 – State Income Tax – The California State Tax is representative of 3.17%.
- $0 – Local Tax – Unlike most states, California has no Local Income Tax.
- $312 – Social Security Tax – A tax that is paid half by you and half by your employer. It’s a total of 12.4% of your wages, and you are directly responsible for 6.2%.
- $73 – Medicare Tax – Again, both you and your employer are responsible for equal payments of the full 2.9%, which sees your share stand at 1.45%
- $50 – State Disability Insurance Tax – 1% of your wage is taken for this tax.
State Disability Tax is a lot higher than in other states, and $50 a month is noticeable, so it’s been included here. But I hope you can see, that depending on the state in which you’re working, you’re going to win some and lose some.
On to the final figure…
After these taxes, your monthly income of $5,026 decreases to $3,690 landing in your checking account each time you are paid. That’s over $1300 a month garnished from your salary to the tax man. Or more than a quarter of your wage at 26.55%.
So what does $29 an hour look like per year after taxes?
Well, your $29 an hour drops down to $21.28 an hour. That is a difference of $7.72 an hour.
Your daily earnings go from $232 to $170.24, a difference of $61.76. Then, your weekly take-home figure changes from $1,160 per week to $872.80. That’s a difference of $287.20. Then finally, your annual income of $60,320 is actually better reflective of $44,280 per annum. As $16,014 of that belongs to the tax man.
States That Don’t Enforce Income Tax Laws
Did you know that there are several states that do not place taxes on your hard-earned income? If you happen to live in Alaska, South Dakota, Florida, Nevada, New Hampshire, Tennessee, Texas, Washington, or Wyoming. Then you know you are income tax-free and don’t have the government garnishing your wages.
Is $29 an Hour A Good Wage Overall?
As stated, if you are earning $29 an hour, that is more than $60K a year before taxes. And according to Statista, $29 an hour is well above the national average per hour. Which, as of this year, stands at $10.99. So really, you aren’t doing too badly for yourself.
However, to put your mind at ease, let’s compare this in a few different states. For instance, in California, before taxes, on minimum wage, you’d be earning $15.50 an hour or $32,240 per year. So $29 an hour or $60K plus a year is almost double this!
But there are even worse minimum wage offerings…
If you were based in New York, then you are looking at $14.20 an hour or $29,536 per year on minimum wage. So, again you are earning far more; that’s two times the amount per hour.
Another way to look at it is like this…
Out of the 50 states of America, 20 observe the minimum wage set by the federal government, which is $7.25 an hour. You are making $21.75 more per hour or four times the amount.
What If I Wanted To Take Home $29 An Hour After Taxes?
So you want to earn $29 an hour after taxes? Ok, let’s figure out the maths.
We know that on $29 an hour, we get $60,320 a year before taxes, and the rate at which we are taxed is 26.55%. So if we add the tax total of 26.55%, which is $16,014 to our annual salary of $60,320, then we end up needing to earn approximately $76,334 each year. That’s to make sure you bring home $29 in the hand an hour.
Broken down into hourly, daily, monthly, and yearly?
To earn $29 an hour net (what you take home after taxes), you’ll need to earn the following:
- $36.69 – Per Hour (76,334 ÷ 2080 working hours each year)
- $295.52 Per Day (36.69 x 8 = hourly rate x 8 working hours each day)
- $1,468 – Per Week (76,334 ÷ 52 weeks of the year)
- $6,361 – Per Month (76,334 ÷ 12 months of the year)
- $76,334 – Gross Salary Per Year
How Do The Taxes Work For This Amount?
Let’s break it down as we did previously. Again, we are basing this on California when calculating these tax percentages. $76K per year works out to be $6,361 per month, and these are the approximate level of taxes that will be garnished from your monthly paycheck.
- $1,034 Federal Income Tax – That’s 16.26%, an increase of 1.53%.
- $272 State Income Tax – State Tax increases by 0.55% to 4.26%.
- $0 Local Tax – No Local Tax is placed on your earnings in California.
- $394 For Social Security Tax – At a steady 6.2%.
- $92 For Medicare Tax – Still at 1.45%.
- $64 State Disability Insurance Tax – Remains at 1%.
So your taxable salary is $76,334, and your tax rate actually increases to 29.17%. Therefore, once taxes have been taken from your wages, the actual amounts you’ll receive in your hand when making $29 an hour net are:
- $25.98 Per Hour
- $207.00 Per Day
- $1039.78 Per Week
- $4,505 Per Month
- $54,067 Per Year
Some Terms in This Article Got You Confused?
Don’t worry; we’ve got you fully covered. Maybe you want to know What Is Gross Monthly Income, Annual Net Income: Definition and How to Calculate it, or What Does Competitive Salary Mean?
Or how about How To Calculate Hours Worked and How to Calculate Holiday Pay? But no matter what hourly rate you’re analyzing, you can use our full guide to Salary vs. Hourly Pay or How Do I Convert Salary to Hourly to Calculate a Part-Time Rate to figure any hourly rate out at all in 2023!
Or perhaps you’re considering the pros and cons of a particular industry?
We can help with that too! Read all about, Is Transportation a Good Career Path, Is Basic Industries a Good Career Path, Is Consumer Non-Durables a Good Career Path, or simply type your field of interest into our search! We can tell you about Flexible Work for People with Disabilities and Special Needs, How to Become a Substance Abuse Counselor, the Best Paying Jobs in Energy, or even How To Become a CIA Agent!
Ok, back to today’s hourly rate to annual rate calculation…
Final Thoughts
Well, it’s $4,415 a month and $60,320 a year before taxes, or $21.28 an hour, $3,690 a month, and $44,280 a year after tax. And, as you now know, $29 an hour is four times the federal minimum wage, so is a relatively very good hourly rate.
That’s more than enough to live a very comfortable life, no matter where you call home. Of course, having family and dependents churn things up sometimes. But a well-executed budget can easily help you keep on top of your earnings and make your money work for you.
Happy earnings!