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 12 months? What about per 30 days, week, and day? How a lot may you be left with after taxes? Is $19 an hour completely different in the event 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 is likely to be doing with a $19/hr job.
$19 an hour is how a lot a 12 months
Let’s assume you’re working full-time, that means 8 hours a day, 5 days per week, 52 weeks a 12 months (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 per week
- Month-to-month: $760 per week x 4.33 (the typical variety of weeks per 30 days) = $3,291 a month
- Yearly: $760 per week x 52 weeks = $39,520 a 12 months
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 fluctuate 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 With no Diploma
$19 an hour is how a lot a 12 months after taxes
25% is mostly 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’ll be able to anticipate after taxes while you earn $19 an hour:
- Each day: $152 x 75% = $114 take residence
- Weekly: $760 x 75% = $570 take residence
- Month-to-month: $3,291 x 75% = $2,468 after taxes
- Yearly: $39,520 x 75% = $29,640 after taxes
You should use a U.S. tax calculator to extra particularly estimate how a lot to anticipate in taxes. Observe that in the event you’re incomes $19/hr as a freelancer, you’ll pay much more, because you’re chargeable for all of your FICA taxes as a substitute of getting these coated by an employer.
Personally, I normally put aside extra like 1/3 of my revenue 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 stage for people in 2023 is $14,580, it’s affordable to anticipate that incomes $19 an hour ought to allow you to outlive financially. Nonetheless, the query stays whether or not you’ll be able to really dwell comfortably on that revenue.
The reply right here is each easy and complex: it relies upon.
The most important issue is solely the place you reside. For those who’re a digital nomad residing in Costa Rica and making $19 US, you’ll be able to dwell in luxurious in a penthouse condominium.
For those who dwell in Iowa, you’ll be able to in all probability afford a mortgage on a good home. However in the event you’re in a metropolis like New York or San Francisco, $19 an hour will in all probability get you a closet with six roommates.
Let’s have a look at an instance month-to-month price range for somebody making $19 an hour. Since housing is likely one of the largest bills, we’ll begin there, utilizing the rule of thumb that you just shouldn’t spend greater than 30% of your gross month-to-month revenue on housing.
We’ll additionally price range in 15% on financial savings—you’ll be able to all the time save greater than this in the event you’re in a position, 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 Revenue: $2,468
Relying on the place you reside, this type of price range might sound extraordinarily doable, or it’d really feel like there’s not a lot wiggle room.
Affording every part and managing to save lots of will probably be quite a bit simpler when you have a dual-income family. Two individuals who every work full-time and earn $19 {dollars} an hour have a internet take-home of $4,936, which is a reasonably strong quantity for residing nicely in most locations!
Trying to stretch that $19 an hour wage so far as you’ll be able to so you’ll be able to dwell nicely and bump up your financial savings price? It’s completely potential in the event you’re decided sufficient! Take a look at these 72 suggestions to save cash.
For those who can solely strip your price range down to this point 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 canine by way of Rover on Saturday mornings, and even beginning your individual enterprise.
TL;DR: For those who simply got here for the brief reply to 19 {dollars} an hour is how a lot a 12 months? Reply: $39,520 earlier than taxes.