$15 an Hour is How Much a Year Before and After Taxes

You just applied for a new job paying $15 an hour, so now you wonder, “15 an hour is how much a year?”

How much money do you take home each year if $15 an hour is the wage you are paid? Can you make this hourly rate fit your personal finance goals?

You can see how much $15 per hour is in the tables below for yearly, monthly, weekly, daily, and even after taxes. You can also use the sample budget if your hourly wage is $15.

It depends on several factors, including your tax filing status, the number of dependents you have, and the amount of other income you earned during the year, just to mention a few significant factors.

If you work full-time, typically 40 hours per week, your yearly income would be $31,200.

This is before federal taxes, state taxes, and other deductions are taken out of your paycheck such as social security and medicare or employee deductions.

This also assumes the only time you take off is if your employer offers paid vacation days since paid time off does not reduce your paycheck.

This detailed guide breaks down the most-asked questions about earning $15 an hour with step-by-step explanations on how much you will make each week, biweekly, month, and year before and after taxes are deducted.

And to complete this ultimate guide, we included an example budget to give you a head start with your financial planning!

Keep in mind the numbers may vary slightly because of different variances in the calculation. There are several ways to calculate income. All estimates are approximate.

For example, the average month of income will vary depending on if it is figured using 4 weeks in a month or the total number of days and hours worked in a month.

It also depends on tax deductions and if social security and medicare deductions are included.

Keep reading to get an answer to the question, “15 an hour is how much a year,” plus all your other questions answered, including how much your take-home check would be, what jobs pay $15 an hour, and a sample budget to help you make a plan for your hard-earned money.

NOTE: This post may contain affiliate links. Read the disclosure for details.

Formula for Calculating Yearly Salary

$15 per hour x 2,080 per year = $31,200 before taxes

The breakdown looks like this:

• Monthly: $31,200 / 12 = $2,600
• Biweekly: $31,200 / 26 = $1,200
• Weekly: $31,200 / 52 = $600
• Daily: $600 / 5 = $120

How Many Working Days are There in a Year

You must determine the number of workdays a year to get the exact amount.

A year consists of 365 days. Accordingly, there are 52 weeks in a year, with 4 weeks each month (including February).

The exception occurs when the month of February has 29 days instead of 28 days, bringing the total number of days in a year to 366. Every seven years, there is a leap year; the next one will be in 2024.

If you work 8 hours a day, five days a week, for one year, you will work 2,088 hours.

Get Started by Downloading the Hourly Wage Conversion Chart (It’s Free!)

*The chart includes base annual salary before deductions for federal, state, and local taxes, Social Security, and Medicare.

What is a Full-Time Job

40 hours a week is considered a full-time job if you live in the United States.

If you are a full-time employee, you work an average of 8 hours daily. You would spend about nine hours at your workplace, including breaks and lunch.

Many full-time jobs offer paid time off.

What is a Part-Time Job

A part-time job generally works less than 30 hours weekly, with 20 hours being the norm.

The number of working days depends on the employer.

For example, an employee could work 4 hours a day for 5 days a week to get in 20 hours of work or 10 hours a day twice a week to get in 20 hours for the week.

How Much is 15 an Hour Yearly

The money you earn before any deductions are taken out of your paycheck is called gross income.

To understand how to figure out how much you will earn in a year if you make $15 an hour, use the following equation as an example:

Hourly pay rate: $15

Work hours per week: 40

Work weeks per year: 52

To calculate how much $15 hourly pay is per year, first, calculate weekly income by multiplying $15 by 40 hours per week.

Next, multiply the product by 52 weeks, like this:

$15 × 40 hours = $600 per week

After you know how much you make each week, multiply that number by 52 because there are 52 weeks in a year.

$600 × 52 weeks = $31,200

The wages earned per year at 15 dollars an hour deliver a base annual salary of $31,200, assuming you do not work overtime.

How Much is 15 an Hour Monthly

To get the most accurate number, use the total working hours in one month.

Formula:

Work hours in 1 month = 160

8 hours per day x 5 days per week = 40 hours per week

40 x 4 weeks in a month = 160 hours of work per month

Monthly salary:

160 x 15 (wage) = $2,400

$15 an Hour is How Much Biweekly

There are two ways to figure out how much money you will make biweekly on 15 an hour.

First, take the average weekly pay of $1,000 and double it (multiply it times 2).

$600 per week x 2 = $1,200The second method to determine this is:40 hours x 2 weeks x $15 an hour = $1,200

How much is $15 an Hour Working 40 hours a Week

Breaking this down to show you how I arrived at the yearly salary of $31,200 looks like this:

40 = work 40 hours a week

52 = number of weeks in a year

40 x 52 = 2,080 = number of hours worked in a year

2,080 x 15 = 31,200

$31,200 per year

Here are a couple more ways to figure the calculation with a specific breakdown:15 x 40 = $600 per week before tax or deductions are taken out of your paycheck.

If you work less than 40 hours a week, you can figure out your weekly check by multiplying 15 by the number of hours you work per week.

If you work less than 40 hours a week, you can figure out your weekly check by multiplying 15 by the number of hours you work per week.

15 Dollars an Hour is How Much Per Day

If you want to calculate how much you make per day on a wage of 15 dollars an hour, use the following formula:

15 x 8 = $120 per day

This figure is considering you are working 8 hours a day.

If you work fewer hours, multiply the number of hours you work daily by 15. This will give your daily pay without tax or other deductions being considered.

15 an Hour is How Much a Year After Taxes

The amount you make after deductions from your paycheck is called net income.

When taxes are taken out of your check, they reduce your take-home salary even though your hourly wage technically doesn’t change.

This equals the amount of your actual paycheck, typically referred to as your take-home pay.

Above, we figured your yearly salary using the hourly wage of $15 before any tax was taken out at $31,200.

However, you have to deduct tax to find your net annual salary.

In the United States, everyone is required to pay the following deductions, which are deducted from their paycheck before they get it:

6.2% Social Security Tax

1.45% Medicare Tax

Federal Tax – the amount varies based on income and other factors

State Tax – the amount varies based on income and other factors

Local Tax – the amount varies based on location

The following example uses 12% as the rough average for tax deductions. Remember the tax rate changes for each person based on personal circumstances.

This is how to figure your net annual salary (the actual amount you will receive per year):

Social Security Tax: ($31,200 × 6.2)/100 = $1,934

Medicare Tax: ($31,200 × 1.45)/100 = $452

Income Taxes: ($31,200 × 12)/100 = $3,744

Total Gross Income = $31,200

Subtract the following (from 31,200) (based on the above figures):

– $1,934 Social Security Tax

– $452 Medicare Tax

– $3,744 Federal/State/Local Taxes

= $25,070 Net Income

After the taxes are deducted, your approximate annual salary will be $24,700 to $26,700 per year.

Even though the actual wage is $15 an hour, your per-hour pay drops to approximately $11.90 to $12.90.

States with No Income Tax

Depending on the state where you live, taxes can vary. If you want to maximize your annual salary, consider moving to one of the following states; you may not have to pay state tax.

According to AARP, 9 states don’t tax their residents, including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

15 an Hour is How Much a Month After Taxes

To get the correct calculation for how much money you will make a month after taxes, use the previously calculated amount for annual income after taxes ($25,070) and divide by 12 because there are 12 months in a year.

The hourly wage of $15 equals $2,089 a month after taxes.

Remember this number is approximate depending on where you live, what tax bracket you are in, and other personal factors that differ for each person.

15 Dollars an Hour Income Comparison Table

Sample Budget on a Salary of $15 an Hour

Jobs that Earn $15 an Hour

You can consider numerous positions if you want to find a job making $15 an hour.

The best place to start is by deciding if you will be looking for a part-time or full-time position, then going to the U.S. Bureau of Labor Statistics to begin your job search.

This is the comprehensive database I used with my high school and college students when they were looking for a summer side hustle or a position after they graduated.

The following table will give you an idea of some of the available options to earn 15 an hour:

15 Dollars an Hour Jobs

Looking for a simple budgeting system to track your finances? Check out our top 10 budget planners, updated for this year!

Can You Live Off Of $15 an Hour

It can help to be paid more frequently when trying to live on 15 dollars an hour.

This is not always an option, and we aren’t talking about getting a paycheck per day.

However, some employers let you choose how frequently you would like to get a paycheck, such as weekly or every other week (biweekly).

The breakdown of your approximate income after taxes are deducted looks like this:

Hourly pay = $11 to $13

Daily pay = $95 to $102

Biweekly pay = $238 to $257

Weekly pay = $474 to $514

Bimonthly pay = $949 to $1028

Monthly pay = $2,059 to $2,224

Annual pay = $24,700 to $26,700

This salary would likely be hard to live on comfortably.

However, there are many things to consider, such as your lifestyle, where you live, and the cost of living in your state of residence.

No matter what amount of money adds up to what you make yearly, whether it is $120 per day, $100 a week, or $600 per week, the best way to know the income you need to earn per month or per year is to start with a budget.

The following tips will help you stretch your hard-earned money farther, whether you are making 30,000 per year, 40,000 a year, or more.

These tips will be beneficial if you make 15 dollars an hour.

Tips to Live Comfortable Making 15 Dollars an Hour

A $15 hourly wage budget can be tight depending on your circumstances, such as where you live, how many dependents you support, etc.

The following tips can help cut living expenses, and a second gig may also be worth considering if you find your monthly budget is falling short and need to make more money.

General Money-Saving Tips:

• Get rid of debt payments
• Spend less than you make (often called ‘living below your ‘means’)
• Follow frugal living habits
• Create and follow a budget
• Put cash in a savings account every month
• Set a goal for what you consider good pay and consistently work toward it
• Know and keep track of your financial situation at all times

Tips to Reduce Your Housing Cost:

• Move into more affordable living spaces such as a one-bedroom apartment or even go smaller to a studio.
• Share a house with roommates to split the rent in half or three ways.
• Offer to do simple upgrades on a rental house in exchange for rent, such as painting or landscaping.
• Explore if your rent is negotiable and if you have always paid on time and proven you’re a responsible tenant.

Tips to Reduce Other Living Costs:

• Buy food from the grocery store to cut the expense of eating out.
• If you live in a place that offers free grocery pickup, opt for this, so you are purchasing exactly what you need and not going inside the store.
• Reduce entertainment costs such as skipping movies, concerts, etc.
• Split cable or TV plans with a friend or family member.

If you need to make more than your $15 hourly wage and don’t want to look for a new job, consider a second job on weekends (or your weekday time off) to bring in some extra cash.

It is also worth checking with your supervisor if overtime hours, including overtime pay, are available in addition to your hourly wage.

The following side hustles can help you make more cash on top of the 8 hours you work:

• Turn your hobby into a side gig
• Start a blog
• Start freelancing
• Complete surveys for cash
• Start a side hustle – Amazon delivery, Uber driver, pizza delivery, Grub Hub, dog-walking, etc.
• Consider a part-time job such as Target or Starbucks

You could also earn more money doing one of these less traditional options:

• Start an Airbnb business
• Sell feet pics
• Use a platform like OnlyFans for extra cash

Consider rounding up and selling scrap metal you probably have in your garage for quick cash if you get an unexpected bill.

Once you get your $15-hour salary to work with your budget, you can start investing at a small scale to build a robust financial future.

15 an Hour is How Much a Year FAQ

The following questions are the ones asked most often about earning a wage of 15 dollars an hour.

Can You Buy a House Making $15 an Hour?

Buying a house is a great goal and is shared by many people.

Buying a house while earning a wage of 15 dollars per hour could be challenging, and it is not likely to happen.

Why not?

If you finance your home with a mortgage, the lender will look at your income vs. your monthly expenses. This is called the debt-to-income ratio.

Each lender has specific guidelines, but the typical rule is that this number should be less than 45%.

With this in mind, the bigger picture to look at to get an answer is to figure out the dollar amount of your monthly expenses (check your prior budget sheets if you use a budget), such as:

What would your new house payment be?

What would the utility bills cost (electricity, water, sewer, etc.)?

What monthly amount are you paying for other expenses such as cell phone, internet, satellite or cable tv, insurance, gas, vehicle payment or upkeep, etc.?

How many payments, if any, do you have for debt obligations such as credit cards, personal loans, vehicle payments, etc.?

Is $15 an Hour Good?

It depends on your circumstances. A $15-an-hour salary may be good if you are single, but it may not be enough if you have a family to support.

According to the US Census Bureau, $35,977 was the average personal income in 2019.

At 15 dollars an hour, which is $31,200 annually, you are several thousand dollars short of making the money that the average worker makes in the United States.

According to the federal government, in 2021, the poverty guideline for a single person was $12,880 in the District of Columbia and all states except Alaska and Hawaii.

The poverty guideline in Alaska is $16,090; in Hawaii, it is $14,820.

The amount of money a person needs to live or consider it ‘good’ or ‘bad’ depends on if it is enough to pay your bills with your lifestyle, location, and cost of living.

The following map from the government census shows a comparison of states and median wages.

What is Considered a High Yearly Salary?

A high yearly salary is typically considered to be any salary above $100,000.

However, every person has their perspective on an excellent median hourly wage or annual salary.

What Salary Can a Single Person Live Off Of?

A single person can often live off a salary of $15 an hour if they have little debt and follow frugal living habits.

However, this may not be possible in certain circumstances, such as if the person has a family to support.

15 an Hour is How Much a Year Final Thoughts

Your hourly pay is just one part of the equation for figuring out your take-home pay and yearly salary.

Taxes and other deductions play a significant role too. After it is all said and done, if you make $15 an hour before taxes, you can expect to take home about $31,200 annual pay.

That comes to about $2,400 per month or $600 per week. Of course, depending on your circumstances, these amounts may be higher or lower. Use this as a starting point when budgeting your expenses and financial future.

When working for $15 an hour, keeping your bank account healthy can be difficult, especially if you don’t have a savings account and an unexpected significant expense comes up.

You will need a plan to manage your finances if you make an annual salary of $31,200.

This is where a budget comes in handy and can help you work your way toward financial freedom.

Sometimes it is necessary to have a little extra cash on hand, and you can do this through part-time jobs, starting your own business, or consistently adding money to an account that earns interest, even if it is a small amount.

If you keep working toward increasing your hourly rate to earn a better yearly salary and put a budgeting plan in place, you will be well on your way to less stress and a higher pay-per-hour position.

Starting a budget will also make a huge difference no matter how much money you make.

If you feel your financial goals are going in the right direction and don’t have a budget, that’s great!

However, just think about how much a budget could put even more of your hard-earned money back into your pocket!

The free Budgeting Basics eBook is the perfect resource to get your money under control or fine-tune it in a specific area.

If you need ideas for creating your budget, hop over to 20 free printable budget templates to get you started.

Interested in more job-earning scenarios?

Read the entire wage series to answer your questions about living comfortably on any income and making extra money if you don’t make enough.

You might also like What is Considered a Good Hourly Wage Today and How Many Work Hours in a Year.

Ready to start a budget you’re excited to follow? You don’t want to miss out on how to make budgeting simple and fun!

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