According to the Bureau of Labor Statistics, the median wage in the United States is $22 across all professions. If you earn slightly more than that, you belong to the higher-paid half of U.S. citizens. $22.50 an hour is how much a year, though?
Compared to the federal minimum wage of $7.25 per hour, $22.50 is more than three times as much. Even the highest minimum in the U.S. – $15.20 in District of Columbia – is noticeably lower than that. $22.50 an hour is how much a year, then, and how much of that is left in your pocket? Let’s break it down.
$22.50 an Hour Is How Much a Year? Gross and Take-Home Salary
There are 2,080 working hours in a year for full-time workers, so you can simply multiply that by your hourly rate. If you’re working 52 weeks per year, 40 hours per week and making $22.50 per hour, your yearly salary will be $46,800. This is before taxes, though.
The federal government will take out 11.06% ($5,176) if you’re a single filer with no dependents. State and local taxes may vary, but let’s assume they’re 4.39% ($2,054) and 3.08% ($1,441) respectively. You’ll also have to pay FICA and state insurance taxes of 7.84% ($3,669). This leaves you with a take-home pay of about $34,460 per year.
Of course, the amount you pay in taxes will change if you’re married or have children. $22.50 an hour is how much a year in your case? If you want to see how your own tax situation affects your take-home pay, you can use an online paycheck calculator.
How Much Is $22.50 an Hour After Taxes?
You may wonder how much of your hourly wage you’ll actually take home if you make $22.50 per hour. Based on the above calculations – which are just a rough estimate – it will be $34,460 divided by 2080. So, for every hour you work – including the hours in your paid time off – you can expect to take home about $16.57.
This is still a significant amount of money, especially compared to the federal minimum wage. However, it’s becoming more and more difficult to live on a salary like this in many parts of the U.S. The cost of living is increasing, while wages remain relatively stagnant.
$22.50 an Hour Is How Much a Week and a Month?
We’ve answered the question “$22.50 an hour is how much a year?”, but what about other periods of time? If your contract only includes the hourly rate, you may want to know how much you’ll make in a week or month.
Assuming you work 40 hours per week, your weekly salary will be $900. This is before taxes, and out of that, you’ll take home about $662.69. If you’re paid biweekly, you’ll receive $1800 every two weeks, which is $1,325.38 after taxes.
As for monthly salary, it will be $3900 – again, before taxes. Your take-home paycheck will be $2871.67. This is assuming you work 160 hours per month, which is the equivalent of full-time employment.
What Jobs Pay $22.50 Per Hour?
There are a number of different jobs that might pay $22.50 an hour, including some entry-level jobs in highly skilled professions. In addition, there are occupations with a median wage of $22.50 per hour. Here are a few examples from the Bureau of Labor Statistics:
- surveying and mapping technicians;
- health technologists and technicians;
- massage therapists;
- first-line supervisors of sales workers;
- financial clerks;
- desktop publishers;
- automotive technicians and repairers.
Of course, there are many other jobs that pay this hourly wage. The easiest way to find out is to search online job boards.
Is $22.50 an Hour a Livable Wage?
$22.50 an hour is how much a year – enough to live comfortably or not? The answer depends on a number of factors, including the cost of living in your area. In some parts of the country, $22.50 hourly is more than enough to cover the basics. In others, it’s not even close.
For example, according to the MIT Living Wage Calculator, a single adult in Atlanta, Georgia needs to earn $17.11 to cover the basics. This includes food, housing, transportation, and other essential expenses. This means you can live there quite comfortably on $22.50 per hour.
In New York City, on the other hand, that same single adult would need to earn $21.42 an hour to cover the basics. So, while $22.50 an hour may be livable in some parts of the country, you’d be left with nothing to save or splurge in others.
The Bottom Line: $22.50 an Hour is Close to the Median Salary
So, $22.50 an hour is how much a year? It’s $46,800 before taxes. That’s close to the median wage in the United States, which was $22 per hour and $45,760 annually in 2021, according to the Bureau of Labor Statistics. You can live on it in most states, but it won’t be enough to live comfortably in big cities.