Home » Pay & Salary » $85,000 a Year Is How Much an Hour?

$85,000 a Year Is How Much an Hour?

85000 a year is how much an hour

Calculating your hourly rate from an annual salary is a simple process that can give you a better understanding of your earnings.

If you make $85,000 a year, what does that mean in terms of daily, weekly, and monthly earnings?

Let’s do the math…

So, $85,000 a Year Is How Much an Hour?

When working out what an $85,000 salary equates to per hour, first, we need to calculate the approximate hourly rate based on common standards.

So, assuming a standard 40-hour work-week, and a 52-week year, we can divide the annual salary of $85,000 by the number of working hours in a year:

The number of working hours is therefore 40 hours x 52 weeks = 2080

  • $85,000 ÷ 2080 = $40.86 per hour

However, this doesn’t take into account any paid time off. So, if we assume a standard two weeks of paid vacation, we’ll subtract those hours from the total number of working hours:

The number of working hours in the year after paid leave is now 2080 – 80 = 2000 hours.

  • $85,000 ÷ 2000 = $42.5 per hour

What Does an $85,000 Salary Equate to Per Day Worked?

Next, let’s calculate the daily earnings. To do this, we’ll simply multiply the hourly rate by the number of hours worked in a day:

  • $40.86 per hour x 8 hours = $326.88 per day

This will, of course, rise when we take into account two weeks of paid leave which, realistically, most people take:

  • $42.5 per hour x 8 = $340 per day
  • That’s an extra $13.12 per day

And What Does an $85,000 Salary Equate to per Week Worked?

For the weekly earnings, we’ll multiply the daily rate by the number of workdays in a week. For those working all 52 weeks of the year, the calculation would be as follows:

  • $326.88 per day x 5 days = $1,634.4 per week

For those wise enough to take their paid leave, which is almost everybody, the number is higher:

  • $340 per day x 5 days = $1,700 per week
  • An increase of $65.60

And What Does an $85,000 Salary Equate to per Week Worked

Finally, What Does an $85,000 Salary Equate to Per Month Worked?

Finally, let’s calculate the monthly earnings. To do this, we’ll multiply the weekly rate by the number of weeks in a work month (assuming a 4-week payment schedule):

  • $1,634.4 per week x 4 weeks = $6,537.6 per work month

Putting two weeks of paid leave into the equation, the calculation is:

  • $1,700 per week x 4 weeks = $6,800 per work month

But how do we go about taking tax into consideration?

When evaluating a yearly salary of $85,000, it’s crucial to understand your take-home pay after taxes. Federal income tax, FICA (Medicare and Social Security), and state and local taxes can significantly decrease your salary. 

Using a salary/tax calculator is the most accurate and easy way to determine your after-tax salary. These are the federal income tax brackets for single filers, for the tax year ending April 2023:

Federal Income Tax Brackets Tax Rate Tax Owed
$0 to $10,275 10% 10,275 x 0.1 

= $1,027.5

$10,276 to $41,775 12% 41,775 – 10,276 = 31,449

31,449 x 0.12 

= $3,779.88

$41,776 to $89,075 22% 85,000 – 41,776 = 43,224

43,224 x 0.22 

= $9,509.28

Federal Income Tax on $85,000

If we add up the separate amounts from the three tax brackets an $85,000 salary straddles, we get:

  • $1,027.5 + $3,779.88 + $9,509.28 = $14,316.66

FICA Taxes

You also need to allow for another 7.65% deduction for Social Security and Medicare taxes:

  • $85,000 x 0.0765 = $6,502.50

State Income Tax

Some of you are not done yet. State income tax will also have to be deducted if you live in a state that charges income tax. Seven states nationwide charge no income tax at all, including:

  • Alaska, Florida, Nevada, South Dakota, Washington, Texas,
  • and Wyoming.

Elsewhere, it can be as high as 13.3%, as in California. So, to get a more accurate estimate of your actual pay, be sure to include these state and local taxes in your calculation.

State Income Tax

For our calculations, we’re going to use an average figure of 4% state tax:

  • $85,000 x 0.04 = $3,400

If we add all the various taxes together, we get:

  • $14,316.66 (Federal) + $6,502.50 (FICA) + $3,400 (State) = $24,219.16

So, how much would you earn after tax on a salary of $85,000?

Post tax take-home wages on a salary of $85,000 would be:

  • $85,000 – $24,219.16 = $60,780.84

So how much would you earn per hour after tax on a salary of $85,000?

If we use the same parameters as before of 2,080 hours worked per 52-week year, your hourly post-tax earnings would be:

  • $60,780.84 ÷ 2,080 = $29.22 per hour worked.
Time Period Pretax rate on 52 weeks worked Pretax rate incl. 2 weeks paid leave After-tax income at 28.5% (52 weeks)
Hour $40.86 $42.50 $29.22 
Day $326.88 $340 $233.76
Week $1,634.40 $1,700 $1,168.80
Month $6,537.60 $6,800 $4,675.20
Yearly $85,000 $85,000 $60,780.84

Now that I’ve answered, $85,000 a year is how much an hour…

Is an $85,000 Salary Considered High in the USA?

An $85,000 salary is a solid income, but whether or not it’s considered a high salary in the USA depends on several factors. Some that can influence the perception of a high salary include the cost of living, location, and household expenses.

Is an $85,000 Salary Considered High in the USA

But basically…

In terms of the national average, an $85,000 salary is significantly above the median household income, which was $70,784 in 2021, according to the US Census Bureau.

 However, the cost of living in different parts of the country can vary greatly, and an $85,000 salary may not go as far in a high-cost city like San Francisco or New York as it would in a smaller city or rural area.

Household expenses also play a role in determining whether an $85,000 salary is considered high. If a household has a high cost of living, with expenses such as childcare and medical bills, an $85,000 salary may not feel like a high salary. On the other hand, if a household has a low cost of living and minimal expenses, an $85,000 salary can feel quite high.

So, it’s very much related to your personal circumstances…

Ultimately, whether or not an $85,000 salary is considered high in the USA is subjective and depends on so many varying factors. 

Here is a list of jobs that typically earn around $85,000 per year:

There are just a few examples on this list, and the exact salary for these jobs may vary depending on factors such as location, industry, and years of experience. It’s also important to note that some of these positions may require further education, certifications, or licenses.

Feel Like You’re Worth More Than This?

We have a ton of resources available for those struggling with getting the salary they deserve in 2023.

Find out How to Answer Desired Salary questions in your interview, such as What are Your Salary Expectations as well as What Is Your Current Salary? Then, learn more about How To Counteroffer Your Salary After A Job Offer, or What Does Competitive Salary Mean really, and more about Salary vs. Hourly Pay.

Finally, if it’s the lack of education or experience that is holding you back, check out these High-Paying Medical Jobs You Can Do With Little SchoolingTop High Paying Jobs Without a Degree, and the High-Paying Tech Jobs You Can Get Without a College Degree!

Ok, back to today’s question…

Final Thoughts

So that $85,000 salary you scored works out to an hourly pre-tax rate of $40.86 if you work 40 hours a week for 52 weeks of the year.

At this level of income, your tax burden will be in the region of 28.5%, dropping your take-home pay to $60,780.84. This equates to an hourly rate of $29.22 per hour.

If you are lucky enough to be earning $85,000 a year, then only 23% of American workers earn more than you. In other words, live within your means, and you should be able to live very comfortably on such a wage.

Happy earnings!

5/5 - (52 votes)

Leave a Comment

Your email address will not be published. Required fields are marked *

About Linda Shepard

Linda is employed by one of the biggest employment agencies in San Francisco and has over 15 years of experience in finding her clients their dream job. She prides herself on being able to match the right person to the right position, which inevitably creates a great working relationship for the employee and the company moving forward.

When she isn't writing articles or working, she enjoys gardening, socializing, and going for long walks on the beach and in nature.

She lives with her boyfriend Carl and their cat, Fluffy.

Leave a Comment

Your email address will not be published. Required fields are marked *

error: Content is protected !!
Scroll to Top