This post may contain affiliate links which means that sproutinue.com may make a small commission at no extra cost to you. We only promote products that we love and feel will benefit our readers. Please read our Disclosure Policy for more information.
So, you got a new job or pay raise, and you’ll be earning $15 an hour, but you’re wondering, 15 dollars an hour is how much a year? In this post, you’ll learn how much 15 dollars an hour is daily, weekly, monthly, annually, before and after taxes.
So,15 Dollars an Hour is How Much a Year?
If you earn 15 dollars per hour, your annual income will be $31,200 before taxes. Let’s assume you work full-time, 40 hours a week, multiply 40 hours by 15 and 52 weeks. As a full-time employee working 40 hours per week, earning 15 dollars an hour, you’ll make $31,200 yearly.
$15 an Hour is How Much a Month?
If you’re working full-time and make 15 dollars an hour, you’ll earn $2,400 a month. A full-time employee works 40 hours per week. If you work fewer or more hours, your monthly income will vary.
In addition, if you work more than 40 hours per week, you may qualify for overtime pay of 1.5 times your income, which means you’ll earn considerably more than what’s listed above.
$15 an Hour is How Much Biweekly?
15 dollars an hour is $1,200 biweekly before taxes. To know $15 an hour is how much biweekly before deductions are taken out, multiple 40 hours by $15 and two weeks. However, working full time at 40 hours per week and paying a 25% tax rate, you’ll make $900 after taxes.
$15 an Hour is How Much a Week?
If you earn 15 dollars an hour, it means you’ll make $600 per week. This figure is computed by assuming you are a full-time worker. Multiplying 40 hours by 15 dollars per hour will give you $600 as your weekly take-home pay.
$15 an Hour is How Much a Day?
15 dollars an hour is $120 per day. The normal workday is 8 hours. So, you multiply $15 by 8 hours to get $120 as your daily income.
$15 an Hour is How Much a Year After Taxes
If you earn 15 dollars per hour, you’ll make $23,400 annually after taxes. Your income before tax is $31,200. However, after paying 25% marginal tax, which typically varies depending on where you live, the after-tax income would be $23,400 annually.
The tax you pay depends on various factors. Assuming a 25% to 30% tax rate is favorable, a third or quarter of your salary will go to tax at 15 dollars an hour. There are different ways to reduce the amount of tax to pay. Nevertheless, this amount as a reasonable tax rate can be expected for an average individual.
Can You Live Off $15 an Hour?
15 dollars an hour is way better than the current minimum wage of $7.25 an hour. While you can live off $15 an hour, you must budget and spend the cash carefully if you want to get by.
So, $15 an hour is a sustainable wage for a small household, but it can be difficult for bigger families unless there is another source of income. Additionally, it’ll largely depend on where you reside and how you budget your income.
Tips for Living on $15 an Hour
Irrespective of how much you earn, living below your means is critical. One of the reasons most U.S. citizens end up in huge debts is because their spending exceeds their income. That’s not wise, especially if you aim to achieve financial freedom.
Here’s what to do if you want to live on $15 an hour comfortably:
- Live below your means: Since you want to be happy, living on less will probably make you happier. When you find contentment with life, you’ll easily live off what you earn.
- Make saving money enjoyable: Find exciting ways to save money, such as the 100-day envelope challenge.
- Make more cash: If you don’t want to downgrade your lifestyle, look for ways to generate more income. Get a second job, a side hustle, ask for a pay raise, or work overtime.
- No state taxes: There are states where you can live without paying income tax. Moving to any of these states will help you save the money that would have been income tax.
- South Dakota
- New Hampshire
- Craft a budget and stick to it: When creating a budget, remember to make it simple and realistic.
- Pay off your debts faster: Less debt means more money in your bank account, and you can comfortably live off 15 dollars an hour.
Tips to Increase Your Income if $15 an Hour is Not Enough
If you realize that $15 an hour isn’t enough to finance your lifestyle, find ways to increase your income. Here’s what you can do:
- Request a pay raise: Walk in and request a raise politely since you don’t know what response you’ll get until you ask.
- Get a new job: Looking for a new job is an excellent way to increase your hourly income. Since changing a job will increase your income, you’ll improve your quality of life.
- Find alternative ways to make money: There’re numerous side hustles you can do to make an extra income. Do the things you love, and transform your hobby or talent into money.
- Earn passive income: Find ways to earn passive income. It can be anything from selling feet pics online, and flipping retail products to affiliate marketing.
Jobs that Pay $15 an Hour
Many jobs pay $15 an hour. Revamp your resume and cover letter and improve your interview skills. First, you’ll need to check out states requiring minimum wage in their cities.
That’s the best place to look for job opportunities that pay higher than the federal minimum wage rate. Most states are adopting this model. Therefore, target and search for jobs in those regions.
Some of the jobs that pay $15 an hour include:
- Overnight stockers
- Delivery drivers
- Retail workers
- Warehouse workers
- Paraeducators at schools
- Customer service agents
Monthly Budget for a $15 an Hour Salary
Wondering how to budget and live off 15 dollars an hour? This sample will help!
It’s based on the after-tax monthly income, around $1,800 per month. You can play around with the figures to determine what works for you. The goal is to save money and live a comfortable life.
- Savings (10% of income) = $180
- Mortgage or rent and utilities 1/3 of income = $600
- Car insurance = $120
- Health insurance = $80
- Cellphone = $40
- Internet = $45
- Gas = $80
- Groceries = $120
- Entertainment = $40
- Miscellaneous = $110
The total is $1,415, so you’ll remain with $385. While budgeting on this income isn’t easy, it’s doable. All you need to do is prioritize your needs and minimize unnecessary spending.
Conclusion: Is $15 an Hour a Good Wage?
Now that you know, 15 dollars an hour is how much a year, is it a good salary? Generally, it’s a good wage for most individuals as it offers enough to live off comfortably. However, it can vary based on where you work and the number of hours you put in every week.
Making 15 dollars an hour offers a lot of potential to grow when you budget, spend your money wisely and save irrespective of your income. If you need to earn more, consider taking on side hustles.