Make Money: $15 an Hour Is How Much a Year?

The federal minimum wage in the U.S. is currently $7.25 and hasn’t seen an increase since 2009.

Even though no proposal for a federal minimum wage hike to $15 has gained much traction, it is a hot-button topic. Whether you currently make money $15 an hour, are considering a job that pays $15 an hour, or could be affected by minimum wage increases, you might have several questions, including:

• $15 an hour is how much a year?
• How much is $15 an hour weekly?
• How much is $15 an hour after taxes?
• What jobs pay $15 an hour?

We’ll tackle these questions and more.

Make Money: $15 an Hour Is How Much a Year?

$15 an hour is $31,200 a year before taxes and other deductions. That’s based on the assumption you work a 40-hour week. With 52 weeks a year, you would work 2,080 hours per year. Overtime hours, time off, and other factors could affect annual earnings, but $15 per hour is about $31,200 annually.

When we do some additional calculations, making $15 an hour is a:

• $31,200 yearly income ($15 hourly rate x 2,080 hours worked in a year)
• $2,600 monthly income (On average based on annual earnings divided by 12)
• $1,200 biweekly income ($15 x 80 hour payroll period)
• $600 per week income ($15 x a 40-hour week)
• $120 per day income ($15 x 8 hours per day)

These numbers are approximate and represent $15 an hour before taxes. Your actual take-home pay is subject to several other variables, including paid and unpaid vacation time, taxes, and payroll deductions for retirement savings, health insurance, or job-related expenses.

$15 an Hour Is How Much a Year After Taxes?

How much $15 an hour is after taxes depends on where you live. American workers pay federal income taxes, but state and local income tax rates vary widely. $15 in New York might only net you around $11.80 an hour. If you make $15 an hour in Texas, take-home pay is around $12.50 per hour.

That $31,200 annual salary for a full-time employee looks much different after taxes. With taxes taken out, you could look at take-home pay of about $25,000 or over $ 2,000 monthly. Living in a state with a low cost of living and no state income tax would make living on $15 an hour easier.

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on earned wages. SmartAsset has an easy-to-use paycheck calculator you can play with to get a good idea of your take-home pay for various salaries and states. Compare your results to the median monthly rent or average cost of living by state to determine whether $15 is a livable wage for you.

What Pays $15 an Hour?

Costco, Target, and Amazon pay all employees at least $15 an hour. Walmart pays all its warehouse workers at least $15 an hour, but the minimum for other jobs is $11 per hour. Kroger’s average hourly wage is $15, but pay varies by location and job title, so many hourly employees make less.

Is $15 an Hour Good?

$15 an hour is not generally considered good pay, but it is over twice the federal minimum wage of $7.25. $15 an hour is $600 a week for 40 hours, far below the $989 median weekly earnings of U.S. full-time workers. Depending on your needs and financial situation, $15 per hour can be a livable wage.

You can find more national salary averages and median household income data on the Bureau of Labor Statistics website.

Can You Live on $15 an Hour?

You can live on $15 an hour, but it might not be easy depending on the cost of living in your area, your lifestyle, and your current personal and financial circumstances. Living on $15 an hour requires budgeting your money, spending it wisely, and saving what you can, even if you’re single.

Tips for Living on $15 an Hour

Whether you make $15 or $150 an hour, financial freedom is unlikely unless you live within your means. Sometimes, a lack of money is not the problem. The lack of a plan and misspending money cause money problems.

Here are a few tips to help you live on $15 an hour:

• Start a budget. If you’re not currently budgeting, start tracking your expenses, choose a budget method, and create your first budget. Starting and sticking to a budget is one of the best ways to improve your financial situation regardless of your annual salary.
• Save what you can. Saving is essential; you can save money on a low income by prioritizing your savings. Don’t focus on the dollar amount. Saving any amount is

  

  better than saving nothing. Build the habit of saving, then save more aggressively when you can.

• Avoid debt. Carrying credit card balances and making the minimum payment could result in thousands of dollars in interest. Try to get out of debt as quickly as possible, and don’t take out any new loans.
• Spend less. You probably spend a high percentage of your income on housing and food. Find ways to spend less money on housing and set a food budget you can stick to. Here are 45 things to stop buying to save money and 42 frugal living tips to help you cut expenses.

When $15 an Hour Isn’t Enough

You might have trouble making ends meet if you’re making $15 an hour. You might also start to suffer from frugal fatigue, which could kick in after living on a tight budget for a long time. You could get sick of not having any fun money or disposable income available.

Those are clear signs you should consider ways to increase your annual income. Getting a raise is the fastest way to increase your income, but that might not be possible. You could also find another source of income, like a second job.

You might consider a side hustle with low startup costs or gig economy work, like driving for DoorDash, selling on Poshmark, reading books for money, or using your existing skills for freelancing in your spare time. If you’ve never freelanced before, freelance jobs for beginners are available.