Have you ever wondered how much money you’d make if you earned $47,000 a year? It’s an impressive sum of money to bring home, but it’s important to understand what that number actually translates to, in terms of hours worked.
Most of us think in terms of hourly wages or annual salaries. But when it comes down to it, that $47,000 number is quite deceiving. What does this amount of money mean on an hourly basis?
To answer the question, let’s look at it from the perspective of $47,000 is how much an hour, in reality.
What Does $47,000 a Year Really Mean?
$47,000 a year is equal to $22.59 an hour, presuming that you work a 40-hour week. That means that, before taxes and other deductions, the average worker earning $47,000 a year brings home about $1,807 every two weeks, or $3,614.40 every month.
After taxes and other deductions…
The take-home pay for someone earning $47,000 a year is likely to be lower. This is because the federal government imposes a marginal tax rate of 22% on income between $39,475 and $84,200 for single filers. The tax rate increases incrementally for higher incomes. State and local taxes will also reduce the take-home pay of someone earning $47,000 a year.
With a marginal tax rate of 25% (federal, state, and local taxes included), the take-home pay for a person making $47,000 would be approximately $35,250 annually, or $2,937.50 each month. This amounts to around $18 an hour.
But don’t forget the number of hours worked…
That being said, many jobs that pay $47,000 a year require more than 40 hours a week to earn. For instance, if you work 50 hours a week at a job that pays $47,000 annually, you’re actually earning $18.07 an hour, gross.
While some might argue that you shouldn’t have to work more than 40 hours a week to earn a livable wage, the reality is that many jobs that pay around $47,000 per year require employees to put in extra time.
Therefore, if you’re looking to earn $47,000 a year and don’t want to work more than 40 hours per week, you might have to sacrifice your salary for fewer hours worked.
How Much is $47,000 a Year after Taxes?
Your take-home pay would be roughly $38,460 if you were paid every two weeks, and your gross revenue was $47,000. Depending on your residence’s province or state, as well as how many deductions you’ve made, this number may vary slightly.
For instance, if you reside in Ontario and earn $47,000 per year, your taxable income would be $44,701, and you would owe $5,449 in federal taxes. So, your total deductions would be $8,604, and your provincial tax due would be $3,155. You now have a net income of $38,442.
Your take-home pay could be even lower if you have any deductions or withholdings from your paycheck. This might include health insurance, retirement contributions, and other benefits.
How does this compare to other salaries in the U.S.?
The federal minimum wage is $7.25 per hour, or $14,040 per year for a full-time employee, or $1,160 per month. The median hourly wage in the United States is $17.09, which comes out to $3,028 per month and $36,336 per year for a full-time worker. So, if you’re making minimum wage, you’re making about 33% of what the average American worker makes.
Is that true for all states?
Some states have a higher minimum wage than the federal minimum wage. For example, as of January 1st, 2020, the minimum wage in California is $12 per hour. That comes out to $2,080 per month and $24,960 per year for a full-time worker.
In Washington, D.C., the minimum wage is even higher, at $14 per hour. That comes out to $2,560 per month and $30,720 per year for a full-time worker. So if you’re lucky enough to live in one of these states or cities with a higher minimum wage, you’re doing better than most other minimum wage workers in the country.
But it works both ways…
Of course, there are also some states that have a lower minimum wage than the federal government’s. For example, the minimum wage in Georgia is only $5.15 per hour. That’s less than half of what it is in California!
What are the Benefits of Making $47,000 a Year?
Now that I’ve answered, $47,000 is how much an hour, let’s talk about the benefits of earning this amount of money.
The good news is…
Making $47,000 a year puts you in the upper-middle-class income bracket. This means that you’ll have more money to save and invest than people who make less than you do. You’ll also be able to afford nicer things and live a generally more comfortable lifestyle.
Of course, there are some drawbacks to making this much money as well. For one thing, you may end up paying more in taxes than someone who makes less money. And if you live in an expensive city, your cost of living will be higher, and it may be harder to save money despite your high salary.
Wait, there’s more to know…
The disadvantages of earning $47,000 a year are numerous. You might not be able to save as much money as you’d like to start with. Since you’ll probably have to put in long hours to make that money, you might not have as much free time as you would like.
Finally, you may not be able to afford certain luxuries that people with higher salaries can afford. You may also have difficulty affording some of the more expensive necessities like health care and housing, depending on where you live.
Overall, though, making $47,000 a year is a good thing. You’ll be able to live relatively comfortably and have more financial security than the many people who make less money.
How Can You Make the Most of $47,000 a Year?
If you were paid hourly and put in 40 hours a week, your hourly wage would be $22.59 before taxes. With that salary, you could do the following things:
Rent an apartment
The average monthly rent in the US for a one-bedroom apartment is $934, so you could easily afford to live alone.
Buy a used car
You can get a great used car for roughly $5,000, which leaves you with plenty of cash for gas and maintenance.
Save money for retirement
By starting now, you might have $47,000 saved by the time you retire. You would have a good savings account to add to your Social Security benefits as a result.
Return to school
If you wish to extend your education, $47,000 can cover tuition and living expenses for a year of graduate school.
Go on a dream vacation
With proper planning, you may use your income to book a fantastic vacation in a far-off location. Just be sure to save up enough money in advance to avoid going into debt when you get back home.
What Jobs Give You an Annual Salary of $47,000 or More?
There are several jobs that give you an annual salary of $47,000 or more. Some positions and qualified professionals working these kinds of jobs would include:
- Investment bankers
While there are many other high-paying jobs out there, these are some of the most common. But remember, with an annual salary of $47,000 or more, you can expect to live a comfortable life and have plenty of money left over to save or invest.
Read more: $47,000 a Year is How Much An Hour?
Want to Look at this Figure from Another Perspective?
If so, please read our response to 18 Dollars an Hour is How Much a Year for further insights.
We can help you break all of this down in many ways, such as explaining more about, How Do I Convert Salary to Hourly to Calculate a Part-Time Rate, What Is Gross Monthly Income, Salary vs Hourly Pay, and What is Freelancing, and how can being a freelancer raise or lower my hourly pay?
Or, you may also be more interested in learning about the Top Easy Jobs That Pay Well, the Top Highest Paying Trade Jobs, the Best Remote Jobs That Pay Well, or High Paying Jobs Requiring a Bachelor’s Degree in 2023.
Ok, back to today’s salary question…
To conclude, this figure varies based on the number of hours worked per week and the type of job a person holds. It can also be affected by overtime pay and other benefits such as bonuses or additional income sources.
Moreover, it is important to take into account taxes and other deductions when considering how much you make an hour. While making $47,000 a year puts you in the upper-middle-class income bracket, there are some downsides, such as higher taxes and the inability to save or invest.
However, with some smart budgeting and investing, you can still make the most of any salary.