$15 is how much a year
There has been a lot of talk about increasing the federal minimum wage from $7.25 to $15.
Democrats want a $15 minimum wage policy included in President Joe Biden’s $1.9 trillion Covid relief plan.
If this change affects you or you have recently been offered a job that pays $15 an hour, you may wonder, $15 an hour is how much a year?
Questions like is $15 an hour a good wage, or can I live off $15 an hour may also cross your mind.
Read on as we answer all these questions and more in this post.
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$15 an hour is how much a year?
If you earn $15 an hour, you will make $31,200 per annum.
In the US, you are considered to be working full time if you work between 30 to 40 hours a week. We have calculated this amount based on the assumption that you work around 40 hours a week.
40 hours X 52 (number of weeks in a year) = 2080 hours per year
Now multiply the total number of hours you worked in a year with $15
2080 X 15 = $31,200
This is the total money you will earn in a year before taxes.
If you work 30 hours a week, you will earn slightly lesser than the amount mentioned above.
30 hours X 52 (number of weeks in a year) = 1560 hours per year
You can multiply the number of hours you worked in a year with $15
1560 X 15 = $23,400
If you are working part-time, a $15 wage will get you much lesser money in a year. Part-time employees generally work between 20 to 29 hours per week.
Assuming you work 20 hours a week, let us calculate your annual salary.
20 hour X 52 (number of weeks in a year) = 1040 hours per year
Now multiply the number of hours you worked in a year with $15
1040 X 15 = $15,600
So, you will make $ 15,600 per year before taxes.
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$15 an hour is how much after taxes
If you earn $31,200 a year, you pay 18.4% of your annual salary in federal taxes, social security, and Medicare.
If you work full time, this will bring down your take-home salary to $25,450 per year.
How much tax you pay on your annual salary also depends on where you live.
The state and local taxes can also make a difference to your take-home salary. If you live in New York, you may earn only $11.80 an hour after taxes.
If you earn $15 an hour in Texas, you will earn $12.44 after taxes.
This means your annual salary after taxes will be between $24,700 and $26,700, depending on which state you live in.
To make the most of your wages, you should live in a state that does not tax your wages.
States that don’t tax wages include Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee.
For taxes due in May 2021(October 2021 with an extension), here are your income tax brackets according to nerdwallet.com.
| Tax Rate | Taxable income bracket | Tax owed |
|---|---|---|
| 10% | 0 to $9,875 | 10% of taxable income |
| 12% | $9,876 to $40,125 | $987.50 plus 12% of the amount over $9,875 |
| 22% | $40,126 to $80,525 | $4,617.50 plus 22% of the amount over $40,125 |
| 24% | $80,526 to $163,300 | $14,605.50 plus 24% of the amount over $85,525 |
| 32% | $163,301 to $207,350 | $33,271.50 plus 32% of the amount over $163,300 |
| 35% | $207,351 to $518,400 | $47,367.50 plus 35% of the amount over $207,350 |
| 37% | $518,401 or more | $156,235 plus 37% of the amount over $518,400 |
How much is $15 an hour per month?
Having a monthly budget helps to keep your spending in check and plan for the future. To plan your budget, you first need to calculate your monthly income.
If you work 40 hours a week and earn $15 an hour, your monthly income will be around $2,600 per month before taxes.
Depending on the state you live in, you will earn between $2,058 and $2,225 after taxes.
If you work part-time (25 hours a week) and earn $15 an hour, you will earn around $ 1,600 per month.
You can calculate your monthly salary by taking your annual pay and dividing it by 12.
You can also take your daily pay and multiply it by 21.7, which is the average number of days a person works in a month.
How much is $15 an hour bi-weekly?
If you work 40 hours per week, at $15 an hour, you will make $ 1,200 biweekly before taxes.
Depending on which state you work in, your take-home pay will be between $950 and $1027 biweekly, after taxes.
If you work 25 hours a week (part-time, you will earn $750 a week before taxes.
How much is $15 an hour per week?
Many companies pay their employees every week. You need to budget your expenditure to make sure this amount lasts the whole week.
If you work 40 hours per week and earn $15 an hour, you will earn $600 per week before taxes.
Your take-home pay would be between $475.20 and $513.60 after taxes depending on the state you work in.
If you work part-time (25 hours a week) at $15 an hour, you will earn $375 per week before taxes.
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How much is $15 an hour per day?
If you earn $15 an hour and work on average eight hours a day, you will make $120 a day before taxes.
Your daily paycheck after taxes will depend on which state you live in, but on average, you will earn between $94 to $102 per day.
If you work part-time for 5 hours a day, you will earn around $ 75 per day.
Is $15 an hour good money?
Although $15 an hour is much better than the current US federal minimum wage, which is $7.25 per hour, it still isn’t an excellent salary.
A person, who works full-time and earns $15 an hour, gets $600 per week.
This amount is far below $989, which is the median weekly earnings of US full-time workers.
According to the United States Census Bureau, the median personal income for 2019 was $35,977.
So, if you make $31,200 per year ($15 an hour), you fall below the average wages in the US.
However, this amount puts you well above the poverty guidelines of $12,700 a year for a single individual.
Can you live on $15 an hour?
Now that you know $15 an hour is how much a year, you must be wondering if you can live on this amount.
Well, you can live off this amount as long as you carefully plan and follow a budget and do not have any dependents.
Living in a state that does not tax wages like Texas, Washington, and Florida will help.
It would help if you lived in a city that has a low cost of living index.
How to live on $15 an hour?
To be able to live on $15 an hour, you need discipline. Money problems often occur not because what you earn is less; they happen because you spend more than you can afford.
Here are some tips to help you live off $15 an hour –
1. Budget your money
Creating a budget and sticking to it is the best way to make the most of your pay.
The budget should be realistic and one which you can sustain for a long time.
2. Make saving a priority
Even if you earn a low salary, make it a habit to save what you can when you can.
If you get some unexpected money like income tax returns or other windfalls, resist the urge to splurge and set up a financial cushion for yourself.
3. Pay off your debt
Paying the minimum amount on your credit card bills can result in thousands of dollars in interest.
Pay off your debts as soon as possible and avoid taking any loans.
4. Lower your expenses
You probably spend a large portion of your income on housing and food. You can lower your housing expenses by moving to a smaller home or living a bit further from the city.
You can reduce your food bills by preparing a monthly shopping list and purchasing only what you need.
Jobs that pay $15 an hour
Wages for the same job can vary depending on which state you are working in.
Here are some of the jobs that pay $15 per hour without requiring extensive education.
You can also check out jobs that pay $20 per hour.
| Job | Average pay per hour | Primary duties |
|---|---|---|
| Mail handler | $15.30 | Selling postage, processing money orders, receiving and sorting letters, packages, and magazines. |
| Medical transcriber Grab free course. | $15.50 | Taking dictation from doctors and convert their instructions into written orders. |
| Medical Assistant | $15.60 | Helping doctors, nurses, and patients with medical forms, preparing exam rooms, and managing samples. |
| Administrative assistant Grab the free course here. | $15.70 | Duties include filing documents, arranging meetings, managing calendars, taking notes, preparing letters and reports, maintaining office supplies, and answering and transferring calls. |
| Laboratory Assistant | $15.72 | Responsibilities include ordering, stocking, and maintaining the materials and equipment necessary for experimentation and cleaning, disinfecting, and processing specimens. |
| Construction worker | $16.19 | Duties include demolishing, remodeling, and building structures according to a blueprint and client specifications |
| Painter | $17 | Ordering and maintaining records of all materials, sanding, scraping, and removing old paint, mixing and cleanly applying fresh paint |
| Delivery driver | $16.25 | Delivering goods, loading and unloading items, checking invoices, receiving payment, and completing necessary documentation. |
$15 an hour budget
While planning a budget, you should follow the 70/20/10 rule. Allocate 70% of your funds for expenses, 20% for savings, and 10% for debt repayment.
This budget has been prepared for a person who takes home $2100 after taxes.
| Expense | Amount |
| Rent | $800 |
| Utilities | $100 |
| transportation | $200 |
| Groceries | $200 |
| Entertainment | $100 |
| Personal and misc | $ 70 |
| Savings | $ 420 |
| Debt repayment | $ 210 |
| Total | $2100 |
It may not be easy to budget on this salary, but it can be done if you prioritize your needs and control your expenses.
Final thoughts – $15 is how much a year.
Now you know $15 is how much a year. It is $31,200 per year before taxes.
Your annual salary after taxes will be between $24,700 and $26,700, depending on which state you live in.
Although $15 an hour is much better than the current US federal minimum wage, which is $7.25 per hour, it still isn’t an excellent salary.
However, you can live off this amount as long as you carefully plan and follow a budget and do not have any dependents.
Read: 18 an hour is how much a year (yearly, monthly and weekly)