Congratulations on being offered a job that pays $50 per hour!
If you’re wondering what your gross yearly earnings will be and how much you can expect to take home after taxes, you’ve come to the right place. In this article, I’ll provide you with all the necessary calculations to convert your hourly wage into an annual salary. I’ll also examine how federal and state taxes will impact your income.
Furthermore, I’ll break down how much you will earn on a daily, weekly, and monthly basis, and evaluate the lifestyle that this level of income can afford you.
So, $50 An Hour Is How Much a Year?
Let’s find out!
- $50 Per Hour Is How Much Per Year?
- After-Tax Earnings
- Overall Tax Owed
- Trying To Work Out Your Salary?
- Final Thoughts
$50 Per Hour Is How Much Per Year?
To work this out, we need to calculate the number of hours worked over a year. We are going to assume eight hours worked per day, five days per week, for 52 weeks of the year.
All we have to do is multiply these numbers to establish our total:
- 8 hours x 5 days x 52 weeks = 2,080 hours.
To get the annual total, we simply multiply the yearly total of hours (2,080) by hourly earnings ($50):
- 2,080 hours x $50 per hour = $104,000 per year.
So if you’re prepared to do a 5-day working week without taking a single additional day off throughout the year, $50 per hour can earn you as much as $104,000 per year for your efforts. Not a bad return.
Realistically though, most of us require at least two weeks a year away from work, and if you are earning an hourly wage, you will not be paid for that time. Let’s take away 80 hours (two weeks of work) from the total number of hours worked and make the required calculation for a more accurate yearly amount:
- 2,080 hours – 80 hours = 2,000 hours.
- 2,000 hours x $50 = $100,000 per year.
Once time off has been allowed for, you’re still pulling in a six-figure income.
$50 per hour is how much per month?
Assuming most employees get paid every four weeks, we will use this as our monthly measure. Based on a 40-hour workweek, the total number of working hours in a 4-week period would be:
- 40 hours x 4 weeks = 160 hours.
Now, all we have to do is multiply that by the hourly rate:
- 160 hours x $50 per hour = $8,000 per month.
What is the weekly income from $50 per hour?
All we have to do is multiply the number of hours worked per week by the hourly rate:
- 8 hours x 5 days = 40 hours per week.
- 40 hours x $50 per hour = $2,000 per week.
What is the daily income from $50 per hour?
This is another very straightforward calculation. Assuming an 8-hour workday multiplied by our hourly rate:
- 8 hours multiplied by $50 per hour = $400 per day.
To properly assess the real value of a $50 hourly wage, it’s important to take into account the effects of taxes. Federal income tax, FICA taxes, and state income tax will take a sizeable bite out of your income.
Federal Income Tax
To work out how much Federal income tax you will pay on $50 per hour, we’ll assume you work all 52 weeks of the year. As we have already discovered, this is a yearly income of $104,000. We then need to consult the relevant Federal Income Tax brackets and perform the appropriate calculations. The following table outlines the tax brackets and their corresponding tax rates for the current tax year:
|Federal Income Tax Brackets for 2023||Tax Rate||Tax Owed|
|$0 to $11,000||10%||0 – 11,000 = 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%||104,000 – 95,376 = 8,624
8,624 x 0.24
The next step is to add up the amount owed from each of the four tax brackets:
- $1,100 + $4,046.88 + $11,142.78 + $2,069.76 = $18,359.42 owed in Federal income tax.
These are the taxes you have to pay towards Social Security and Medicare. These add up to a 7.65% deduction:
- $104,000 x 0.0765 = $7,956 owed in FICA taxes.
State Income Tax
Trying to work out state income tax is less straightforward. A handful of states don’t levy an income tax, and the rate varies considerably in others. Count yourself lucky if you live in Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming. You will owe nothing as these states don’t have an income tax.
As the rates vary so much elsewhere, we are going to assume an average state income tax on a $104,000 income of 5.5%:
- $104,000 x 5.5% = $5,720 owed in state income tax.
Overall Tax Owed
|State Income Tax||$5,720|
|Federal Income Tax||$18,359.42|
To get a precise estimate of how much money you will take home after tax, we subtract our total tax burden from our yearly income:
- $104,000 – $32,035.42 = $71,964.58 after tax income.
Let’s work out how much tax that is in percentage terms. To do this, we have to divide the total amount of tax paid by the pre-tax income and multiply by 100:
- $32,035.42/$104,000 x 100 = 30.803% in taxes.
If you live in one of those states that don’t charge an income tax, then how much will your after-tax income be?
- $104,000 – $26,315.42 = $77,684.58.
Now we will take a closer look at the hourly, daily, weekly, and monthly rates after deducting taxes, with figures for those paying an average state income tax of 5.5%, as well as for those living in states that do not levy a state income tax.
|Time Period||Pretax rate||After-tax income at 30.803% (Inc. 5.5% state income tax)||After-tax income at 25.303% (for those who don’t pay state income tax)|
|Monthly rate (4 Weeks)||$8,000||5,535.74||$5,975.74|
Is $50 per hour a good income when compared to the national average?
If you’re willing to work a 40-hour week with no time off, this will net you a pre-tax income of $104,000. That’s a highly respectable income in the United States. Only 16% of workers nationwide earn more than this. The average American worker took home $54,132 last year. This is equal to just over $26 per hour.
If you are earning $50 per hour and working full-time, you are not far away from earning double this figure.
What kind of quality of life does $50 per hour allow?
If you’re prepared to put the hours in and reach your full earning potential of $104,000 a year before tax, you can afford to live in any state in the country. There aren’t too many postcodes that will be beyond your means.
As a single person with no children, you will be able to afford to live in any US city. How much you choose to spend on accommodation and how expensive your tastes are will determine how much you have left at the end of the month.
Non-urban areas are cheaper…
If you are earning $50 per hour in a cheaper, more rural part of the country, you could potentially afford all sorts of extra luxury in your life or invest a sizeable chunk of your income. Either way, $50 an hour is a great income level that anyone should be able to live very comfortably on.
Trying To Work Out Your Salary?
It can get confusing at times, so let’s help by checking out what is the difference between Salary vs Hourly Pay or Gross Pay vs Net Pay, and How Do I Convert Salary To Hourly To Calculate A Part Time Rate?
If you’re not sure how to convert your pay, then take a look at these guides such as 25 An Hour Is How Much A Year, 15 An Hour Is How Much A Year and 18 Dollars An Hour is How Much A Year, as well as 13 An Hour Is How Much A Year as well as 20 An Hour Is How Much A Year in 2023?
To work out your hourly rate, you’ll probably like to know $36,000 a Year is How Much An Hour, $47000 a Year is How Much An Hour, and $30,000 a Year is How Much An Hour, or perhaps you’re a high earner, then check out $80000 A Year Is How Much An Hour, $100000 A Year Is How Much An Hour, and $85000 A Year Is How Much An Hour?
If you’ve managed to make it all the way up to earning $50 an hour, then you’re doing very nicely. Put those full-time hours in, and you’ll earn a tidy pre-tax income of $104,000. Only just over 1 in 6 American workers can say they earn more than that.
Once this figure has been pummeled by the taxman, you’ll have $71,964.58 left over if you are also paying 5.5% state income tax. If you live in a state with no state income tax, that’s a grand total of $77,684.58 remaining after tax.
Enjoy your earnings, and why not spoil yourself?