Perhaps you’ve simply come throughout a job itemizing or been provided a job that pays $19 an hour, and it’s time to crunch the numbers.
19 {dollars} an hour is how a lot a yr? What about monthly, week, and day? How a lot may you be left with after taxes? Is $19 an hour completely different in case you’re a freelancer vs. a W-2 worker for a corporation?
Let’s dive into these questions and extra details about how nicely you could be doing with a $19/hr job.
$19 an hour is how a lot a yr
Let’s assume you’re working full-time, that means 8 hours a day, 5 days every week, 52 weeks a yr (together with paid trip time). We are able to use some easy multiplication to calculate how $19/hr provides up over every time interval:
- Each day: $19 x 8 hours = $ 152 a day
- Weekly: $152 a day x 5 days = $760 every week
- Month-to-month: $760 every week x 4.33 (the typical variety of weeks monthly) = $3,291 a month
- Yearly: $760 every week x 52 weeks = $39,520 a yr
These are all of the gross figures, that means they’re what you earn earlier than taxes are taken out. Your particular tax charges will differ relying on the place you reside, whether or not you’re submitting collectively or singly, what deductions you qualify for, and so forth.
Discover out: Jobs That Pay $20 an Hour And not using a Diploma
$19 an hour is how a lot a yr after taxes
25% is usually an excellent ballpark determine to estimate for federal and state taxes.
Utilizing that 25% quantity, we are able to multiply our earlier figures by the remaining 75% to determine how a lot take-home pay you possibly can count on after taxes once you earn $19 an hour:
- Each day: $152 x 75% = $114 take dwelling
- Weekly: $760 x 75% = $570 take dwelling
- Month-to-month: $3,291 x 75% = $2,468 after taxes
- Yearly: $39,520 x 75% = $29,640 after taxes
You need to use a U.S. tax calculator to extra particularly estimate how a lot to count on in taxes. Be aware that in case you’re incomes $19/hr as a freelancer, you’ll pay much more, because you’re accountable for all of your FICA taxes as an alternative of getting these coated by an employer.
Personally, I often put aside extra like 1/3 of my earnings due to this. (Study extra about self-employment taxes from the IRS right here.)
Is $19 an hour Good, a good, livable wage?
Because the federal poverty degree for people in 2023 is $14,580, it’s cheap to count on that incomes $19 an hour ought to allow you to outlive financially. Nevertheless, the query stays whether or not you possibly can actually reside comfortably on that earnings.
The reply right here is each easy and sophisticated: it relies upon.
The largest issue is just the place you reside. In case you’re a digital nomad residing in Costa Rica and making $19 US, you possibly can reside in luxurious in a penthouse house.
In case you reside in Iowa, you possibly can most likely afford a mortgage on a good home. However in case you’re in a metropolis like New York or San Francisco, $19 an hour will most likely get you a closet with six roommates.
Let’s have a look at an instance month-to-month funds for somebody making $19 an hour. Since housing is without doubt one of the largest bills, we’ll begin there, utilizing the rule of thumb that you simply shouldn’t spend greater than 30% of your gross month-to-month earnings on housing.
We’ll additionally funds in 15% on financial savings—you possibly can all the time save greater than this in case you’re ready, however consider saving and investing as a precedence, not simply “no matter I’ve left after my spending.” That’s cash you’re paying to your future self to make your life higher!
Web Month-to-month Earnings: $2,468
Relying on the place you reside, this sort of funds might sound extraordinarily doable, or it’d really feel like there’s not a lot wiggle room.
Affording every little thing and managing to save lots of will probably be loads simpler you probably have a dual-income family. Two individuals who every work full-time and earn $19 {dollars} an hour have a web take-home of $4,936, which is a reasonably stable quantity for residing nicely in most locations!
Trying to stretch that $19 an hour wage so far as you possibly can so you possibly can reside nicely and bump up your financial savings fee? It’s completely potential in case you’re decided sufficient! Take a look at these 72 ideas to save cash.
In case you can solely strip your funds down thus far and you may’t discover a job paying greater than $19 an hour, take into account supplementing your work with aspect gigs on nights or weekends.
This may be so simple as doing surveys on whereas watching TV, strolling canines by Rover on Saturday mornings, and even beginning your individual enterprise.
TL;DR: In case you simply got here for the quick reply to 19 {dollars} an hour is how a lot a yr? Reply: $39,520 earlier than taxes.
