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# \$53,000 a Year Is How Much an Hour?

With the cost of living rising over the course of each year, you might wonder if you are earning as much as you could be. Still being paid the same annual salary you were three years ago?

It sounds like it’s high time to start exploring new employment options and putting your unique self and matching skill set out there!

Or maybe you already are, and you’re considering the benefits of a \$53k package offer. And now you want to know…

### \$53,000 a year is how much an hour?

It’s definitely more than most are currently making. So, let’s break this figure down to what it looks like hourly, weekly, and monthly before and after taxes. We’re going to factor in a bunch of variables and also give you an idea of the quality of living on a salary like this.

Let’s get calculating!

### The Lowdown

Most corporate and business careers are managed on a Monday to Friday, 9 am to 5 pm basis. This is pretty standard and means you are like many other Americans partaking in the rat race. And giving yourself fully to your career during these sometimes grueling 40 hours a week.

If you are doing some job searching and coming across positions that reflect an annual salary of \$53K, you might wish to know what that looks like per hour.

### Let’s do the math here…

40 hours a week for 52 weeks of the year, bringing your total working hours to 2080. Then simply divide 53,000 (the amount you’ll earn for a full year) by 2080 (the total number of hours you’ll work for 9-5 40-hour work weeks), and you are looking at earning \$25.48 an hour before taxes.

Now, let’s break this down a little further to see how these figures measure up in daily, weekly, as well as monthly earning increments.

You are making:

• \$53,000 per year
• \$25.48 per hour
• \$203 per day
• \$1,019 per week, and
• \$4,415 per month

These figures are really good when you consider them at this stage. However, what we are working with right here is what would be made before taxes.

## Along Comes The Tax Man

So, remember that the tax man is going to come along and take a fair chunk out of your wages.

### And did you know…

There are seven tax brackets on which the federal government taxes your income. But it all comes down to how much money you earn each year. So, for our \$53K a year, you’ll find yourself hefted into one of two levels. The first sees you in the 3rd taxing level at a rate of 22%. In this bracket, you can earn anywhere from \$41,776 to \$89,075 per year as a “singleton” or if you are “married but filing your tax return separately.”

But what if you are classed as the “head of the household,” a qualifying “widow,” or you are “married and filing a joint application”? Then you’ll actually drop down to the lower level 2nd tax bracket.

### This is good news, as…

You’ll be penalized with a much kinder tax rate of just 12%. Of course, Federal Tax is just one of the numerous types of taxes that are taken from your salary before it gets to you. You’ll also be paying a State Tax, Social Security Tax, as well as a Medicare Tax.

Let’s take a look at how your annual salary of \$53,000 will be divvied up if you are single and based in the city that never sleeps, New York. These taxes are reflective of the majority of the 50 states and their tax percentages. However, it is always best to do the research for your precise state and city as they might vary ever so slightly.

### Or by a lot!

Before taxes, you are due to receive \$4,415 each month, so let’s see what taxes eat into that and the percentages that will be taken.

And, more importantly, what you’ll be left with:

• Federal Income Tax – \$606 – this equates to 13.73% of your paycheck.
• State Income Tax – \$202 – this tax is representative of 4.58% of your monthly earnings.
• Local Tax – \$134 – for your salary, it’s another 3.03% taken.
• Social Security Tax – \$274 – meanwhile, Social Security works out to be 12.4%. However, you are personally responsible for just half at 6.20%, as the other half is paid by your employer.
• Medicare Tax – \$64 – Again, both you and your employer are responsible for equal payments of the full 2.9%, which sees your share stand at 1.45%.

### So, unfortunately…

You’ll be receiving a whole lot less than you probably first thought. After tax, your monthly income of \$4,415 radically diminishes to around \$3,135, landing in your checking account. That’s over \$1200 a month garnished from your salary to the tax man, or a colossal 29%. What does this look like in comparison to the figures before tax?

Well, your \$25.48 an hour drops down to \$18.08 an hour. That’s a \$7.40-an-hour difference. Your daily earnings go from \$203 down to \$144.64, a difference of \$58.36. Then, your weekly take-home figure drops from a decent \$1,019 per week to \$723.46, while the month goes from \$4,415 to \$3,135. That’s \$295.54 and \$1280, respectively.

Then finally, your annual income of \$53,000 is actually better reflective of \$37,620 per annum. As \$15,380 of that belongs to the government for taxes.

### Different Tax Percentages

These figures were worked out specifically for a single person living in New York State. Depending on where you are located, you might find you are taxed higher or lower, or you are not taxed on your earnings at all!

### Yes, you read that correctly!

No taxes on your income is still a thing in a few states of the US.

Wikipedia’s informative page states that there are no taxes on your hard-earned wages each month from states including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

### Interestingly…

Only a couple of these non-taxing states also have very low minimum wage levels.

In fact, most of them have minimum wages ranging from \$10.85 per hour in Alaska right through to \$15.74 per hour in Washington. Currently, the federal minimum wage is \$7.25 an hour, which, according to Paycor, only Texas, Tennessee, New Hampshire, and Wyoming adhere to.

## Is \$53,000 A Year Considered A Good Wage?

Yes, it’s a good wage. Let’s look at it this way, you are making far more than minimum wage in a lot of places. For instance, in the Greater New York region, before taxes, you’d be earning \$14.20 an hour or \$29,536 per year.

### So, \$53,000 is almost two times the minimum wage figures!

However, if you were based in California, there’s a minimum wage rate of \$15.50 an hour there. A standard 40-hour working week would bring in \$32,240 a year before tax. But your salary would still equate to an extra \$20,000 a year in comparison.

### That’s huge!

Meanwhile, if you lived in a state where the minimum wage reflected that of the one set by the federal government, you will be shocked at the difference in figures. The current rate is \$7.25 an hour, or \$15,080 before tax for a 40-hour working week. Then your \$53,000 is more than three and a half times that.

So if you are making \$53K a year, yes, you are doing pretty well for yourself! Plus, depending on your industry, position, and how long you’ve been at your current company, you might be looking forward to a nice annual pay increase in the years to come.

## Is It Easy To Budget On \$53K a Year?

Well, this all boils down to the kind of lifestyle you live. Plus, if you are single or have a family and dependents. How good you are with your money and if there is anything you are working towards or saving for in your life, is also going to make a difference.

### Luckily for you…

I’ve devised an elementary monthly budget for the taxed monthly income of \$3,135. Feel free to use this as a basic template. And to switch things around to suit your specific needs. One thing I will say, however, is to really try to stick to the rule of approximately ⅓ of your monthly income going toward your rent or mortgage.

And also saving at least 10% of it as well. Obviously, if you can save more each month and spend less on rent, then you will really be doing amazing!

• Rent / Mortgage & Bills (33%) – \$ 1,045
• Savings (10% minimum) – \$313.5
• Emergency Fund – \$100
• Car Payment & Insurance – \$240
• Groceries – \$150
• Cell Phone – \$50
• Health Insurance – \$110
• Eating Out & Entertainment – \$230
• Gym Membership – \$99
• Miscellaneous – \$150

This budget sees you spending \$2,478.50, or around 79% of your salary, and leaves you with a further 21%, or \$656.50 each month, to play with.

### Is that important?

Usually, yes. You might have extra costs like schooling or student debts to pay off, or you might not. But the great thing about budgets is the way they can be personalized to meet your individual circumstances and lifestyle.

You might enjoy treating yourself to a little shopping spree each month or saving up for an awesome getaway a few times a year. Or you might prefer to save that extra money for a rainy day or put an extra large payment into your mortgage some months to reduce the interest you’re paying off.

You might love to invest the extra money in your classic car or do some house renovations. Honestly, no matter what it is you like to do and how you spend your time, this extra money will allow you a bit of leeway to really enjoy yourself!

Now that you know how much you’ll be earning an hour on \$53,000 p/a…

## Can We Interest You in Where You Can Live On This Salary?

As mentioned, there are so many variables that one needs to take into account when it comes to affording your personal lifestyle. But on a \$53k gross salary, you can definitely pick and choose on areas to make a home, in a way most can’t.

Why not have a look at the Cheapest Places to Live in California? We can even help you with How to Get a Work Permit in California if you need it. Or learn more about LinkedIn Cold Messages: How to Reach Out About a Job in California or anywhere. Or maybe you’re wondering, New York City vs Chicago: Which Is Better?

### Need to stay put, but have more salary concerns?

No worries, we’re here to address your needs. Maybe you want a full guide to Annual Net Income: Definition and How to Calculate, or How to Calculate Holiday Pay?

### Thinking you need more than 53k?

You and everyone else. But believe it or not, it’s not impossible! Find out How to Answer Desired Salary questions in your interviews, including What are Your Salary Expectations or the sometimes uncomfortable question, What Is Your Current Salary? Then we’ll teach you How To Counteroffer Your Salary After A Job Offer!

Simply use our search option for any salary-related query you may have in 2023.

Right, back to today’s annual salary analysis

## Final Thoughts

\$53,000 a year is a great salary that ranges from 2 to 3.5 times above the average minimum wage for all of the 50 states.

That’s \$25.48 an hour and \$4,415 a month before taxes or \$18.08 and \$3,135 after. That’s more than enough to live a very comfortable life, either in a vibrantly fast-paced city or a quaint small town. Plus, if you can maintain a well-balanced budget of \$53K a year, and make your money work for you, then you can really set yourself up for the future and beyond.

Happy earnings!

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