20 Dollars an Hour is How Much a Year? Is it Enough to Live?

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In this post, you’ll learn how much 20 dollars an hour per year and whether can you live on that income.

The prices of goods and services are rising each year in the United States. 

But the income is still there with very little to no raise. 

Within some areas, the living expenses are too high like in New York and San Francisco. 

Facing these conditions if you’re earning $20 dollars an hour wage can help you live a comfortable life or not.

How about affording family expenses and buying a house? And what jobs pay $20 or more per hour?

All of this is going to be discussed in this post. So read it till the end. 

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$20 an hour is how much a year?

To calculate the yearly income at $20 per hour first you need to find out the total working days in a year. 

So take the example of the current year 2022. 

It started on Saturday 1st of January and ends on 31st December. Out of these 365 days, there are 105 weekends and at the end 260 working days. 

Now the second thing is how many hours on average you work in a day. So normal daily working hours are 9:00 AM to 5:00 PM which constitutes 8 hours per day. 

For calculating the total yearly income at 20 dollars an hour let’s calculate the total working hours per year for 2022. 

Here it is: 

Total working hours in a year = 260 working days X 8 hours per day = 2080 hours 

That means you work 2080 hours per year assuming that there is no unpaid leave, holidays, vacations, and other sick leaves. 

Now for calculating the total yearly income you need to multiply the total hours by $20 per hour. 

Here is the actual formula:

Total yearly income = total working hours per year X rate per hour = 2080 X $20 = $41,600/year

So your total yearly income at $20 per hour will be $41,600 before tax. Means it’s your gross income without paying taxes.

Now in case you get 2 weeks of the unpaid week every year. Then the working weeks fall from 52 to 50 per year. 

Here are your total earnings for 50 weeks per year:

Total yearly income for 250 days = 250X8 = 2000hours X $20= $40,000 per year

So your income falls from $41,600 to just $40,000 per year before tax. 

Now let’s calculate the yearly income for part-time work after that we calculate the after-tax income for both. 

How much is $20 an hour working part-time?

On average the part-time workers spend 5 hours per day. Assuming that you work for 5 working days while eliminating 2 weekends. 

Here is how much you earn per year:

Total yearly part-time hours = 260X5= 1300 hours

Total yearly income part-time = 1300 X 20= $26,000/year

Working five hours a day part-time your yearly income will be $26,000 per year. 

$20 an hour is how much a year after taxes?

Before calculating the tax on your income. First, you need to understand how many different types of taxes are applied to your income per year. 

So here is the list of taxes that your income may face: 

  1. Federal income tax: The US government has a progressive tax system. The rate increases as your income increases. Here are the federal tax rate and income brackets:
  2. State income tax: The state you’re living in also imposes a tax on your yearly income. But here you have the advantage of zero tax in some states. Others charge a flat rate and some have variable tax rates. Here is the list of all US states with their income tax rates:
  3. Social security: If you’re an employee then 6.2% of income is charged as social security while as a self-employed you need to pay 12.4% per year. But on income equal to or larger than $147,000 per year.
  4. Medicare health insurance: As an employee, you are charged a flat rate of 1.45% per year while 2.90% for self-employed people. 

Now let’s calculate yearly income after tax at 20 dollars an hour wage considering state tax zero. 

Here is how much you pay in yearly taxes and what remains in after-tax income: 

After-tax income= $41,600 – 4786.50 =  $36,814 per year

Taking into account the federal tax you get left with $36,814 in after-tax income at 20 dollars an hour.

For part-time income which is $26,000 before tax from the above calculation, here is the after-tax income:

After-tax part-time income= $26,000 – 2914.5 = $23,085.5 per year

You are left with $23,085.5 per year in after-tax income.

How much is $20 an hour semiannually?

If you divide the same yearly income by 2 here is the calculation for 6 months:

Before-tax income= $20,800 

After-tax income = $18,407

Before-tax part-time income = $13,000

After-tax part-time income= $11,042.75

If you multiply the hours and rate, divide the yearly hours by 2 and multiply with $20 to get the required answer. 

How much is $20 an hour quarterly?

Calculating quarterly income is also simple. Divide the semiannual income by 2 or divide the yearly income by 4 to get the required answer. Do this with both before-tax and after-tax income of your full-time and part-time work. 

How much is $20 an hour per month?

The working days in a month vary between 19 to 22 days if you work 5 days a week. While they may go up to 26 or 27 in countries like Pakistan where most institutions work 6 days of the week.

Considering working days 21 per month here is the calculation:

Before-tax income = 21 days X 8 hours/day X $20 per hour = $3360 per month

Before-tax part-time = 21 days X 5 hours/day X $20 per hour = $2100 per month

How much are 20 dollars an hour biweekly?

There are 10 working days in two weeks. That means 10 X 8 = 80  working hours biweekly. 

So here is how much you earn $20 per hour biweekly: 

Biweekly income = 80 X $20 = $1600 full time

Biweekly income = 50 X $20 = $1000 part-time

Now let’s go to the next section.

How much are 20 dollars an hour weekly?

In a single week, only 5 working days are present starting from Monday to Friday. Working 8 hours a day full-time and 5 hours a day part-time here is the before-tax income for a week:

Weekly income = 5 days X 8 hours X $20 = $800 full time

For calculating the part-time income per week with 5 hours of work per day here is the calculator: 

Weekly income = 5 X 5 X $20 = $500 part-time

So you earn $800 working full time while $500 working part-time per week. 

$20 an hour is how much per day?

There are 8 hours of work full time in a day. If your hourly rate is $20 then here is how much you earn per day:

Daily income = 8 (working hours) X $20 (hourly rate) = $160 

For part-time work for 5 hours per day here is how much you earn:

Daily income = 5 (part-time hours) X $20 (hourly rate) = $100

You earn $160 per day for full-time work while $100 per day for part-time work. 

Comparison table of 20 dollars an hour wage as full-time

Here is a comparison table of 20 per hour wage full-time for different time frames including before tax and after tax:

Time FrameHours workedBefore-tax income
Year2080$41,600
Semmiannum1040$20,800
Quarter520$10,400
Month173$3460
Biweekly80$1600
Weekly40$800
Daily8$160
Tight Finance

Comparison table of 20 dollars an hour wage as part-time

Here is a comparison table of 20 per hour part-time wage for different time frames including before tax and after tax:

Time FrameHours workedBefore-tax Income
Year1300$26,000
Semmiannum650$13,000
Quarter325$6,500
Month108$2,160
Biweekly50$1,000
Weekly25$500
Daily5$100
Tight Finance

What are the jobs that pay $20 an hour wage?

There are three different types of jobs available that pay $20 an hour. They don’t require a degree and experience. You can also get them part-time as well.  

realtor, programming, bookkeeping, photographer, Handyman, walk dogs, virtual assistant, proofreading, content writing, copywriting, small business marketer, online tutor, website testing, transcriptionist, customer service representative, house cleaner, landscaper, warehouse associate, independent delivery driver., social media manager, real estate agent, affiliate marketer, online survey taker, graphic designer, test preparation teacher, translator, blogger, YouTuber, Amazon FBA, retail arbitrage, drop shipping,

All these jobs need no degree, with little to no experience, and you can do them part-time. The $20 is not a benchmark and instead, some of these jobs pay more than $20 per hour like $22 or $24. So you can make really good money.

What types of taxes do you pay on 20 dollars an hour salary?

There are four main types of taxes you need to pay on your income. 

They include: 

  • Federal tax: this is a progressive tax system and as your income increase the tax also increases.
  • State tax: the individual states in which you live also charge tax. Some of them charge a flat tax rate, while others have varying rates including high and low. There are states that are tax-free and you don’t have to pay like Alaska.
  • Social security tax: they deduct 6.2% tax from you and 6.2% from your employer if you do a job. But if you’re self-employed then you pay 12.4%. 
  • Medicare tax: it’s a flat rate of 1.45% for employees where the other half is paid by your employer. While as a self-employed person you pay the full 2.9%. 

In addition to that, there is a sales tax on goods and services you purchase. The states have an average sales tax of 5.09% with 18 states below this average and some with zero tax at all. 

How much are 20 dollars an hour after taxes by US states?

As I early mentioned that you’re required to pay state tax depending on how much is charged. But here states fall into three categories that are states with varying tax rates, flat tax rates, and zero tax rates. 

Here is a list of all the US states by the tax rate and what your income will be after deducting it: 

How to live on 20 dollars an hour’s salary?

Living on a 20-dollar-an-hour salary depends on your area. There are states where prices are low and affordable, while some states like San Francisco are expensive. 

But using below tips and tricks you can use to live on that income:

  • Make a budget and follow it
  • Create a shopping list to avoid impulse buying
  • Cancel online subscription to avoid money wastage
  • Lower vacations and private parties
  • Avoid drinking alcohol and eating at expensive restaurants
  • Cook food at home and don’t order it

Your life becomes a lot easier by following these tips. And if you’re a single person then living on that income isn’t difficult. 

How to earn more than 20 dollars an hour?

Yes, you can earn more than $20 per hour. Here is how:

  • Ask your boss for a raise in salary
  • Do a part-time job 
  • Start a business offline or online
  • Change your job and join a new with higher pay

Doing a part-time job and starting a personal business are great tips. If you’re a student and can’t do a part-time job or business then quit your existing job and start a new high-paying one.

How to make a budget for 20 dollars an hour salary?

The 20$ an hour salary becomes $3068 per month after taxes taking state tax zero. Now you can make a budget in two different ways. The first is to use the 50/30/30 rule and the second is the 70/20/10 rule. 

In the 50/30/20 rule you spend 50% of disposable income on needs, 30% on wants, and 20% on saving and paying off debt. But if you are living in a little expensive state it may not work so use the 70/20/10 rule which advocates that spend 70% on needs, 20% on savings, and 10% on charity or paying off debt. 

Remember that savings are the most important part of your budget. Don’t ignore savings to build emergency savings and achieve future goals. Without saving you may not have money in an unexpected event or need to use a credit card which builds more debt. 

Here is what your budget will look like: 

Monthly ExpensesAmount
Food $412
Fuel and transportation$204
Credit card$111
Mortgage$1100
Emergency savings and long-term savings$443
Insurance$438
Entertainment$243
Internet and cable$116
Tight Finance

Related Post: How to Create a Personal Budget [6 Easy Steps] PLUS Template

What tools do you need to live on $20 an hour?

For living on this income you should have budgeting tools like YNAB, Mint, or Personal Capital. If you don’t want to use software then have a simple Google Spreadsheet budgeting template. You can also use Trim for cutting unnecessary subscriptions and the Prism app to avoid missing any future bill payments.

Related Post: 30 Dollars An Hour Is How Much A Year? Is It A Good Salary?

Frequently asked questions

Let’s briefly discuss some queries:

Is $20 an hour suitable for teenagers?

The average teenager’s wage in the US is $18.52 per hour but there are jobs that pay way less than that. So if a teenager is living with parents and studying in a school or college then earning a $20 per hour wage is a good option. It can easily cover many of his expenses and lowers college fees as well. 

But teenagers don’t stuck on this salary for a long time instead switch to other jobs that pay $23, $25, and even $30 or more per hour. This helps them accumulate emergency funds, pay student loans, and lower the financial burden on parents. 

Can you purchase a house with 20 dollars an hour wage?

Purchasing a house with a $20 per hour salary may or may not be possible. It depends on the area or states you live in and the prices of houses in that area. If you pay a big down payment and your monthly mortgage payments don’t exceed the $1000 limit then it’s possible. Otherwise, if you barely meet monthly expenses then it’s impossible. 

Here are the housing prices by state:  

Name of StateHouse Price in July 2022
Alabama$204,965
Alaska$337,373
Arizona$458,907
Arkansas$177,710
California$816,804
Colorado$604,911
Connecticut$383,222
Delaware$355,181
District of Columbia$826,124
Florida$415,762
Georgia$318,273
Hawaii$1,038,544
Idaho$476,198
Illinois$269,575
Indiana$221,437
Iowa$192,568
Kansas$206,176
Kentucky$197,644
Louisiana$214,522
Maine$360,836
Maryland$415,797
Massachusetts$611,819
Michigan$234,386
Minnesota$340,122
Mississippi$164,132
Missouri$231,062
Montana$449,723
Nebraska$239,814
Nevada$484,530
New Hampshire$450,827
New Jersey$480,275
New Mexico$296,395
New York$375,719
North Carolina$322,055
North Dakota$282,461
Ohio$213,360
Oklahoma$181,574
Oregon$534,956
Pennsylvania$267,549
Rhode Island$443,482
South Carolina$293,445
South Dakota$292,488
Tennessee$297,943
Texas$314,718
Utah$588,862
Vermont$358,862
Virginia$379,206
Washington$640,494
West Virginia$137,286
Wisconsin$266,750
Wyoming$320,939
Source: Fool.com

Can you live off of 20 dollars an hour wage?

This depends on two factors. First the area you live in and second whether you’re single or have a family of 2 to 5 people. 

If you’re living in expensive areas like New York and San Francisco then living on a $20 per hour wage as a single will be an effort. While having a family makes it impossible to live on that low wage.

On the other hand, if you live in less expensive states like Mississippi and Alabama then you can easily afford expenses. But still, for bearing family expenses you need to increase your income. 

Related Posts: 40 Personal Finance Tips To Effectively Manage Your Money

Is $20 dollars an hour a good wage?

Yes for a teenager it’s a good salary. While as an adult with a family you must have to earn more than that to survive in ever increasing price environment. 

How does your yearly salary compare with others?

The median household income in the United States is $67,521. In comparison to this amount, your income of $41,600 at $20 an hour is 61.61% of the US median. That is a great difference and your income is much lower than the national average. 

Here is the state-wise comparison of your yearly income at $20 an hour: 

Here you’re very close to Mississippi, Arkansas, and West Virginia in ratio. But as you go from the bottom up then your ratio decreases and the difference increases. Overall your income at 20 dollars rate is lower than all of the state’s median income per year. 

What’s the total number of working days in 2022?

The year 2022 started on Saturday, January 1, and ends on Saturday, December 31. During this period there are 105 days as weekends. So 260 working days are left if you neglect the other holidays like easter, Christmas, and any other international day leave. 

So in short 260 working days are in the year 2022. If you take 2 weeks of vacation leave or random leaves in a year then these working days decrease to just 250 days. 

What is the salary of a US worker per hour on average?

The US workers get an average of $31.95 per hour which is an increase of 0.3% in May 2022 from $31.85 per hour. While the minimum average is $7.25 per hour set by the US government. 

How much is $20 an hour after taxes?

Your yearly income after tax at $20 per hour will be $36,813.5 considering that state tax is zero. If you deduct state tax then it will be lower. 

What if you get 2 weeks of paid vacation or take no break?

If you take 2 weeks of paid vacation or no break at all then your working weeks per year will be 52 or 2080 working hours. Now multiplying it by $20 per hour the year before tax income becomes $41,600 and after tax will be $36,813.5 per year. 

Final thoughts on 20 dollars an hour 

While starting your job career earning that much income is a better choice.

But it’s as good to help you live in an expensive area or with family.

To achieve your financial goals like buying a house, or car, paying student loans, and living a comfortable life you need to earn more.

So try to always switch to better opportunities where you can earn $25, $30, or $50 per hour.

For living on $20 an hour you must make a budget and stick to it. Along with that don’t ignore emergency funds to meet unexpected needs.

I hope you find this blog helpful. If yes then share it with your social media followers.

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Ahmad Ali