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$40000 a Year is How Much an Hour After Taxes?

$40000 a year is how much an hour? This is a typical question that plagues new job seekers and those looking to change their jobs or employers. The same goes for questions such as “how much is a salary quoted using 4, 5, 6, or 7-figures“?

In continuing with this series of posts, today I shall look at what it means to make $40K annually from hourly pay. Plus, what kind of lifestyle you should expect from a $40K salary.

For starters, it goes without saying that all gross incomes must be taxed by the Government before reaching your accounts. A single person in the $40,000 annual wage will fall under the 12% tax bracket.

Your place of residence, methods used to acquire the salary, and the tax policies regarding your situation are some of the main determinants of how much tax you pay.

When calculating the total payable tax, only the amount left after the previous deductions are taxed in the next level. The most brilliant way to know which tier your post-taxed salary falls in by checking out with a tax calculator from your state.

For any of these calculations to make sense, allow me to take you back to school for a few minutes:

How To Calculate Hourly Rate from Annual Salary?

$40,000 a Year is How Much an Hour After Taxes

Example 1: An individual who lives in New York receives a net salary of $32,500. Assuming that they work 40hrs a week for the whole 52 weeks in a year, then their total hours of work for the year would be 2080 hours (40*52).

If you divide $32,085 by 2080hrs, you will find out that the total amount earned an hour is approximately $15.60.

Now, for their salary to equal $40K/year, they need to increase their hourly rate by around 4 dollars.

$40,000/ 2080 = $19.23 hourly.

(Note how amazing a small increase in your hourly income ends up making such a huge difference in your gross annual income)

 Going forward, you use the following assumptions to calculate the hourly rate for other salaries:

  • That you work for 40hrs a week.
  • You work for 52 weeks a year.
  • You take a 2-week vacation for the year but are not paid, making your work time 52 weeks.

Note: In the vacation scenario, work hours reduce to 2000hrs, meaning you would need to rack in 80hrs in overtime (throughout the year) to hit the $40K/p.a target.

$40000 a Year is How Much an Hour?

If you’re still wondering, What is the hourly rate for 40000 a year?

As discussed above, if you work for 40 hours a week (2080 hrs a year) and make $40,000 in a year it means that you are making roughly $19.23 per hour – ignoring taxes and other deductibles. 

Here’s a quick list of other similar wages (before tax deductions)…

$50000 a Year is How Much an Hour?

  • If working for 52 weeks yearly, then the hourly rate would be; $50,000/ 2080 hrs = $24.04 hourly.
  • Working for 50 weeks annually: 50,000/ 2000 hrs= $25 hourly. 

$45000 a Year is How Much an Hour?

  • Without annual vacation: $45000/ 2,080 hrs = $21.63 per hour
  • With a vacation: $45,000/ 2,000 hrs = $22.50 per hour

How much is $44,000 a year per hour?

  • Without the standard 2-week annual vacation: $44000/ 2,080 hrs = ~$21 per hour 
  • With a vacation: $44,000/ 2,000 hrs = $22 per hour

How much is $42,000 a year per hour?

  • Without the standard 2-week annual vacation: $42000/ 2,080 hrs = ~$20 per hour 
  • With a vacation: $42,000/ 2,000 hrs = $21 per hour

$41000 a Year is How Much an Hour?

  • Without the standard 2-week annual vacation: $41000/ 2,080 hrs = $19.71 per hour
  • With a vacation: $41,000/ 2,000 hrs = $20.50 per hour

$37000 a Year is How Much an Hour?

  • Without vacation (52 weeks * 40hrs = 2080hrs) : $37000/ 2080 hrs = $17.79 hourly
  • With vacation (50 weeks *40 hrs = 2000hrs): $37000/ 2000 hrs= $18.50 hourly

$35000 a Year is How Much an Hour?

  • Without vacation (52 weeks * 40hrs = 2080hrs) : $35000/ 2080 hrs = $16.83 hourly
  • With vacation (50 weeks *40 hrs = 2000hrs): $35000/ 2000 hrs= $17.50 hourly

$40000 a Year is How Much an Hour After Taxes?

If you are a single filer, a $40,000 annual salary attracts around $6,000 to $9,000, which is slightly over 12% 0f $40,000 which is $4,800. Why is this?

You get to pay for different classes of tax including Federal Income, State-Tax, Social Security, Medicare, and State Disability Insurance. As such, your net income comes down to around $32,500 from a $19.23 per hour pay.

So, to take home $40,000 every year after taxes, you need to make around $50,000+. The extra 10,000+ will help cover all of your tax obligations. This also means that your hourly rate has to increase to around $24.75+

How Much is $40,000 a Year Monthly?

Calculating how much an annual pay of $40,000 translates into a monthly salary is quite simple. We all know that a year is made up of 12months.

Therefore, the monthly gross income would be $40,000/12 = $3333.33, before any deductions are made- keeping in mind that deductibles vary from one state to the other.

$40,000 a Year is How Much Biweekly?

Biweekly pay means getting your money at the end of every two weeks. You can calculate your biweekly salary by dividing your annual income by 26 (the number of two-week periods a year).

The result can also be arrived at by multiplying your hourly rate by 80 (assuming that you work 40 hours a week). Either way, the results should match.

Example 2: How much do I need to make biweekly to earn $40,000 in a year?

  • $40,000/26= $1,538.40 biweekly or $19.23*80= $1,538.40 biweekly

Also Read:

What Jobs pay $40k a Year?

For any change in career or job position, salary is a big factor. The same applies when you are about to make a college application.

To help your decision-making easier, here are the jobs that pay at least $40K a year. Additionally, I have included the experience level and academic qualifications required for each job. 

1. Athletic Trainer

Athletic trainers work with a variety of patients from children to soldiers and professional athletics. They evaluate athletes’ injuries, give first aid care to the injured, tape and/or brace athletes to prevent an injury before a game, and also record the injury, healing, and recovery of an athlete.

They have a vast working environment from educational institutions, fitness centers, hospitals, and professional sports teams.

In the USA, the trainer is required to have secured at least a Bachelor’s Degree before he/she is licensed to operate.

He/she earns an annual salary of $49,860 in May 2020, according to the U.S Bureau of Labor Statistics

2. Biological Technician

These technicians assist scientists in the laboratories in performing experiments. Some of their duties include:

  • Cleaning and maintaining the lab alongside apparatus.
  • Analyzing experimental data and using the interpreted results in writing reports.
  • Weighing of compounds and solutions that are to be used in experiments. 
  • Keeping a detailed log of all work-related activities carried out in the lab.
  • Monitoring lab works to ensure they are in compliance with the set standards.

For one to be recognized as a Biological Technician, you will have to attain a bachelor’s degree in biology or a closely related field. It’s also crucial that you gain laboratory experience, preferably from an internship in a recognized institution.

They mostly work full-time with a median annual wage of $46,340. This means that they earn around $22.28 per hour.

3. Environmental Science and Protection Technician

They perform the duty of monitoring the environment during fieldwork and investigating sources of pollution and contamination in laboratories. Environmental technicians ordinarily work under the supervision and direction of Environmental scientists.

Apart From collecting samples of water so as to assess pollution problems, they also prepare necessary reports, set up stations for collecting pollutants from the site, and also carry out computer data entry and basic calculations.

Environmental technicians usually need an associate degree in applied science or science-related to qualify to work in this field. It is, however, important to note that some positions in this field definitely require a bachelor’s degree.

Their median annual wage is $46,850, which is $22.53 per hour.

4. Recreational Therapist

Recreational therapists use different methodologies such as dance, music, art, and crafts in planning and executing recreational-based treatment programs for the physically challenged, injured, or ill people.

These therapists assist their patients to reduce stress, anxiety, depression and also help them build their confidence so that they are able to integrate with the community and socialize with fewer difficulties.

It’s worth putting into consideration that recreational therapists are way different from recreation workers who basically organize recreational activities- essentially for enjoyment

Recreational therapists work in a diversity of environments; recreational departments, hospitals, and nursing homes.

A Recreational therapist’s median annual income is $47,710 amounting to $22.94 per hour.

5. Correctional Officer (CO)

Correctional officers are tasked with the responsibility of supervising inmates and ensuring they are safe and secure. They enforce law and order in prisons as well as inspecting the facility to ensure they meet the set standards and also aid in rehabilitating and counseling the offenders.

This is a demanding job since you will be required to work for long hours given that there is a shortage of officers. Be ready to work past normal job hours. This job requires you to be swift and decisive. Unfortunately, you might even end up injured from a violent confrontation with inmates or be exposed to contagious diseases.

These are the kinds of jobs that you are likely to suffer from heightened anxiety and stress, depending on the population of the facility you are in charge of.   

Correctional officers firstly undergo academy training before being allotted to a facility. The basic requirement to qualify as a correctional officer is a high school diploma and also you should have met the age requirements from your state- these requirements vary depending on the state and correctional agency.

According to the Bureau of Labor Statistics, COs have a median annual wage of $47,410 making it $22.80 per hour. 

Proceed here for a list of jobs paying $20 an hour

40k a Year Jobs Without a Degree

You don’t have a degree? Don’t worry, there are high-paying jobs for you. That said, lack of that important piece of paper may, however, could mean having to work longer hours.

Luckily,  you can also turn to the gig economy for jobs such as virtual assistance that pay around $25 per hour, and over $60 per hour as an expert.

6. Water and Wastewater Treatment Plant System Operator

A water treatment plant system operator manages a system of machines that are used in the water purification process before the utility is distributed to consumers.

It’s no easy job purifying water collected from natural reservoirs, streams, or even underground, into a product fit for human consumption.

The operators perform the following duties:

  • Cleaning and maintaining the plan’s equipment.
  • Recording operational data, including the gauge readings.
  • Collecting and testing sewage and water samples.
  • Inspecting equipment periodically
  • Being well informed on the Environmental Laws and Regulations.
  • Adding chemicals like chlorine, Ammonia, and lime to disinfect water.

Used water flows in pipes into the plant where it is treated before being used for purposes such as irrigation. 

Many water treatment plant operators work for disposal and sewage services. This kind of work is physically demanding and, in most cases, the operator works in unhygienic places. This calls for paying close attention to safety procedures due to avoid hazardous materials.

A Water and Wastewater Treatment Plant Operator generally needs a high school diploma or equivalent accreditations to operate. Some employers might prefer applicants who have completed a Bachelor’s Degree in fields like Environmental Science or Wastewater Treatment Technology. 

The median annual salary for a Water and Wastewater Treatment Plant Operator is around $49,090 or $23.60 per hour.

7. Machinist and Tool and Die Makers

Machinists and tool and die makers are metal workers who analyze design specifications, craft metals into the desired shapes, assemble these parts, and test the finished product so that it can be used in the manufacturing firm.

Machinists use machine equipment to produce exact one-of-a-kind items which could be automobile pistons, hydraulic parts, or even anti-lock brakes. A machinist also does the work of remanufacturing a broken part when requested by the company’s mechanic.

Machinists usually have a high school diploma or an equivalent certificate. This is unlike the Tool and Die Makers who need to have done other courses past high school. Extra courses in Math, metalwork, blueprint reading, and drafting could give both artisans an upper hand.

The median annual income for a machinist is around $45,840.

8. Photographer

Can you imagine getting paid for taking pictures, that sounds like an incredible career to pursue. In order for you to stand out as a good photographer, you definitely have to invest in your career. That is to mean that you will have to be on the lookout for high-tech cameras and also software like Lightroom.

Mostly, photographers narrow in into one type of photography. You could choose to be an aerial photographer and take pictures of structures and landscapes, be a commercial photographer, and capture images that would be used in advertising.  Also, you can go for photojournalism where you take pictures that aid in the delivery of news in the media industry.

As a photographer, you must have a ‘good eye’ for using color and light into coming up with creative images that can be used in telling a story. You are also required to be flexible because this kind of job entails traveling a lot and working long hours too.

Good communication skills are paramount as you will be required to understand the needs of your client and also communicate to them in a manner that will make both of you reach an agreement.

When applying for this job, you are expected to provide a portfolio of your work since you gain expertise on the job. The median annual salary for a photographer is around $41,280 per year – 19.80 per hour.

9. Medical Records Technician

Medical Records Technicians obtain patients’ medical data from physicians and healthcare professions and convert them into permanent health records. This updated information is useful to both doctors and insurance firms. They are also in charge of maintaining Electronic Health Records.

It is important that you have knowledge in Electronic Health Record Management Systems for you to deliver efficient services to the facility you’re working for.

In order to qualify as a Medical Records Technician, a postsecondary certificate or a high school diploma is needed. You should also be capable of executing detailed tasks under pressure.

The median yearly wage is around $44,090.

10. Automotive Service Technician

An automotive technician inspects, fixes, and maintains vehicles. They use specialized equipment to detect problems in the vehicles, communicate the problem with the owner of the vehicle, and perform maintenance services to fix and prevent future breakdowns.

There are different types of service technicians who specialize in different vehicle systems:

  • Automotive air conditioning technicians mainly deal in repairing and installing air-conditioners in vehicles.
  • Brake technicians are tasked with the duty of pinpointing problems affecting the brake system and making relevant repairs.
  • Diagnostic technicians use electronic testing gadgets alongside their vast intelligence in engine performance to detect malfunctions in the engine and fix the problem.
  • Front-end technicians who use wheel-balancing equipment alongside other alignment tools to identify and anchor handling and tire wear issues.

The most common set of skills requirements for an automotive technician is a high school diploma or GED certification.

Achieving a postsecondary educational program in automotive service technology may distinguish you from the pack since you will require little on-the-job training. If not, you will likely start as a trainee and acquire more knowledge gradually.

The average annual income for an automotive service technician is about $44,050.

11. Fitness Trainer

Fitness trainers work with people of a variety of ages and skills and motivate them in ways of improving their overall health and fitness through physical activities.

These trainers are responsible for designing a workout routine that meets the demands of their clients. They also plan classes for sessions such as cardiovascular exercises, dancing, and strength training such as weight lifting.

Other duties include:

  • Rearranging misplaced gym equipment.
  • Demonstrating the correct techniques to clients.
  • Creating and updating reports on a client’s progress.
  • Giving first aid services when an emergency arises.

This job requires you to be flexible since you might find yourself traveling to different gyms or a client’s home.

A high school diploma is a minimum requirement to enter into this occupation. Employers mostly require group fitness instructors to be certified. Specialized fitness trainers accrue certificates according to their proposed type of training, be it Yoga or Pilates.

Organizations such as the Institute for Credentialing Excellence provide certification in such programs.

The median yearly income for a certified fitness trainer is around $40,510- $19.50 per hour.

Is 40k a Year Good for a Single Person?

The answer to the question of whether $40k a year is good for a single person varies on the location you are in. You could afford to live a decent lifestyle on a $22,000 annual salary in Kentucky, whereas you will probably find another person on the same salary struggling to make ends meet in Manhattan.

Is 40k a Year Good for a Single Person?

Source: Livin Wage MIT

A look at the above MIT’s living wage calculator shows that a $40k salary ($19.23 hourly) is enough in most cities for a single person with no children. However, the calculator only accounts for basic living expenses such as food, housing, and healthcare. It does not contemplate luxurious expenditures such as entertainment or vacations as stipulated in its procedures.

Your financial position also determines whether a $40k salary is enough. If you managed to graduate without any withstanding debts and by luck you live in your parents’ house, you will definitely be able to accumulate sizeable savings.

This is in contrast to a single person who lives in San Francisco, which is arguably the world’s most expensive city to live in. Add a student loan debt, credit card debts on top of the usual expenses, and living in this tech city will barely make it with a $40K salary.

Generally, $40k is good to go by for a single person living almost anywhere in the world. You could either live a comfortable lifestyle or find yourself struggling depending on the locality and your lifestyle.

Is $40k a Year Middle Class?

An annual income of $40,000 would place you in the middle class in the American economic class system. Nonetheless, depending on your spending habits, location, and how much debt you have accumulated, the amount could eventually put you in the lower-end of the middle class.

In the States, the Government has come up with Federal Poverty Income Guidelines that contain information on the income threshold based on the number of people in a household for all 48 contiguous States. 

Accordingly, for a family of five, the poverty level of income is $31,040 and below. On the other hand, a family of seven or fewer members living under an annual salary of $40,000 is considered to be middle class.

Pew Research Centre states that in 2018, 19% of the US adults lived in upper-income households, 52% in the middle-income, and 29% in lower-income households.

The research center has developed a calculator that you can use to estimate your income class. Provided that you feed in the correct details on your geographical, financial, and household information, the tool gives a good picture of what lifestyle to expect from your yearly salary.

Is $40,000 a Year Enough to Live on?

Can you live on $40,000k a year? There are a number of factors to consider before coming up with an answer to the question. First off, where you live matters. As we saw earlier, it is cheaper to live in Mississippi compared to New York.

Also, if your family is made up of you and your partner only, then $40,000 is way past double the Federal Poverty Income Guidelines, and you should live a lifestyle in the middle class.

The other factor that should be considered is your expenditure. How much goes to settling your debt obligations such as your mortgage? Do you drive or use public transport? All these expenses factor into your DTI which greatly determines how comfortable your life will be. 

How to Live Off $40k a Year?

The key to knowing how to live on any annual income is by planning and budgeting how to spend your money. For you to come up with an effective plan, you will have to take into account your monthly income vs. expected expenses.

The good news is financial stability is possible with $40,000 annually if you are disciplined enough to adopt rugal living. This is because the median household income in the US is around $63,000. So, if you have a family depending on you, $40k might not cut it.

The following are ways you could employ into making sure you have a stable financial base:

  • Cut your housing expenses

One of our big expenses is our monthly mortgage or rent payments. You should not spend more than 28% of your gross monthly salary on your mortgage. This might prove to be difficult in some areas compared to others.

If you are situated in areas of high-cost-of-living like California, then you will find out the medium range for a one-bedroom apartment lies between $1,500-$1,750. This is past the 28% housing expense we’ve mentioned above.

For this reason, you might consider relocating to states like Lowa and Montana or moving into a multi-bedroom apartment and splitting the rent with roommates. 

  • Reduce transport costs

Instead of going for a new car that would probably consume half of what was left after settling your rent/mortgage payments, it is advisable to go for a reliable used car. This will help you save for the other vehicle expenses such as repairs, car insurance, and gas.

Things could get even better for you if you are situated in a convenient location where you can rely on public transport, take a bicycle, or even walk to and fro work.

  • Come up with a budget

The main objective of coming up with a budget calendar is to minimize expenditure and maximize your savings. If you don’t have any idea, how to create a budget, get started with these best budgeting planners of 2021.

A firm budget is helpful in assisting you on how to divide your income among your expenses. The idea is to develop a financial plan that will help you save a large portion of the total money you get from your paycheck.  A budget also helps you avoid adding more debt to your list of expenses. 

One way of monitoring where you are at with your budgetary goals is by linking your bank accounts to reputable budgeting apps. These are tools that send you alerts when you are approaching your budgeted spending limits.

How Much Should I Save if I Make 40k a Year?

The basic rule behind saving is that if you start saving at an early age for your investments to have more time to grow. It is advisable to first settle any high rate interest loans you have before you start saving, the reason being that you don’t want to add paying out debts to your list of expenses.

If you have the discipline to start and continue saving at a given percentage, preferably 15% of your salary, you won’t have to increase the percentage as you get older. So for $40K a year, aim to save $6,000 every year.

That said, the figures on your paycheck should not discourage you so long as you have the desire and willingness to save money. So, what can you do to increase your savings? Below are some tips to follow:

  • Computerize your savings by having your employer or bank put a specific amount of money into your savings account.
  • Start a 30-day no spending challenge and see how incredibly you can save in such a small time by only spending on your basic needs.
  • Also, create a separate savings account to cater for any emergencies that may arise in the future. This will prevent you from swiping clean your savings when emergencies arise.

There are many formulas for setting up an emergency fund. The most common one being putting aside 3 to 6 months of your expense amount for a rainy day.

Can I Afford a House on 40k a Year?

The cost of housing is a big factor in where you choose to work. And while renting is an option, ultimately, it’s best if you can live in a house that you own. So, if you ask, can I buy a house earning 40k a year? Let’s see:

House buying is a multifaceted endeavor. For example, what category of mortgage does your dream house fall under? The answer to such a question depends on your creditworthiness.

Here, factors such as your credit history, your income, your existing debts, and how you settle debts come into play. The answers to these questions will help you come up with a holistic home-purchasing decision.

Basically, mortgage banks, also known as mortgage lenders, determine your qualifications for a loan by considering your monthly gross income and how much down payment you can afford.

One of the key deciders of these requirements is your debt-income ratio (DTI) that is calculated from front and back-end ratios.

Let me explain with examples:

  • Front-end ratio

This is also referred to as the housing expense. It shows how much of your total monthly income is spent on your mortgage payments. In order to stay on track, you should not spend more than 28% of your earnings on mortgage payments. The 28% deduction should also cover your real-estate taxes, loan principal, interest, and homeowner insurance.

How do you go about calculating your front-end ratio?


Multiply your yearly income by 0.28 then divide your answer by the number of months i.e 12. The result you get after the calculations is your maximum housing expense.

Example 3: A CO who makes $40k a year wants to purchase a house. What would be their monthly housing expenses?

28% of annual salary/12= ($40,000 * 0.28)/ 12= $933.30 per month

  • Back-end ratio

Also called the total debt-to-income ratio. It shows how much of your gross income would be exhausted into meeting all of your debts obligations.

This figure should not be more than 36% of your gross income taking into account overall debts, including student and car loans, mortgage, child support, credit card bills, and so on.

Just like the front-end calculations, you determine your maximum allowable debt-to-income ratio by multiplying your gross salary by 0.36 then dividing the result by 12 months.

Using the same example as above, the maximum allowable expenses would be:

36% of annual income/12= ($40,000 * 0.36)/12= $1,200 per month

If your salary can cover all of your expected expenses per both calculations, then you should be able to own a house with a $40K yearly salary.

Another factor to consider is the location of your house. For this, you note that some states have a cheap cost of living. The reason being that it becomes hard to purchase a house in a city like New York City living on a $40k gross annual salary as compared to Mississippi.

With that in mind, below is a list of cities where you could live quite comfortably on an annual salary of $40,000 or less.

10 Premium cities to consider living in with a yearly salary of $40,000

  • Coralville, Iowa
  • San Marcos, Texas
  • Alton, Illinois
  • Coeur d’Alene, Idaho
  • Gulfport, Florida
  • McMinnville, Oregon
  • Munhall, Pennsylvania
  • Guthrie, Oklahoma
  • Duluth, Georgia
  • Canandaigua, New York

Likewise, if you earn an annual wage of $40,000 then here is a list of cities to avoid living in. 

  • New York City, New York
  • Los Angeles, California
  • Miami, Florida
  • San Francisco, California
  • Honolulu, Hawaii
  • Washington, D.C.
  • Oakland, California
  • San Jose, California
  • Boston, Massachusetts
  • San Diego, California

Is $40,000 a Year Good?

Although $40,000 annually is below the median individual income in the US, factors such as where you live, how good you are at managing your cash, and current financial situations determine if $40k a year is good.

This amount of money is categorized in the middle class, and therefore, it’s considered a livable salary. With proper budgeting, $40k is enough to afford you a house and, most importantly, a comfortable lifestyle.

The Bottomline: How to Live on $40,000 a Year?

To make 40,000 dollars a year pay work, my advice to you is that you need to evade debts at all costs.

Further, keep your expenses and expenditure low, be resourceful and, find other ways you could use to increase your income and you’d be surprised at how much you could really save and invest for the future.

Let them earn their allowances and marvel at how easier this will help you save more by spending less on toys and school trips.

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