Have you ever wondered how much you earn per hour with your annual $45,000 salary?
You might earn it from several jobs that you take a year. This might be from your full-time and part-time jobs such as freelancing, assisting a family business, or caretaking a kid from your block.
But then, the itching question of how much you earn per hour with your $45k a year came up.
And all you want to do right now is to compute it. Well, if you want to answer that question, I can give it to you.
45,000 a year is 21.63 an hour. This is how much you’ll get an hour if you are working in a full time position. And of course, if I consider all your vacations and holidays are paid. So if you work in a full time position with 40 hours per week, 52 weeks in a year, your hourly salary is 21.63 dollars.
This is below the national average, but still enough to survive for a single person.
Let’s dive deep in the calculation, how much you earn after taxes in different states and the best practices to budget your living with 45,000 dollars.
45000 a Year is How Much an Hour?
$45,000 is a decent salary if you are a student or an essential average employee in the U.S..
But before you jump into that great idea, it is helpful to know how much is $45,000 when you break it in at an hourly rate.
It’s essential to see if you will jump on the given job opportunity. Especially if you are a striving student or a fresh graduate looking for your first job to land.
As per my calculations, I utilized the usual five working days of 40 hours a week. So if I divide the 45,000 salary by 2080 hours of full time worker, I got the 21.63 dollars an hour.
45,000 Annual Salary After Taxes
Taxes are the biggest culprit in terms of reducing your take-home salary.
If you earn $45,000 as salary, the Federal Income Tax is $3,041, State Income Tax with $1,817, Social Security of $2,480, and Medicare with $580, then more likely your take-home pay is $32,082, which is quite painful for your pocket.
You may refer to the table below to give you a straightforward computation. The table explains the yearly rate of a particular state after paying the average tax rate.
$45000 to Yearly After Taxes
Let’s take California as an example here.
If your gross income is $45,000, and you have an 18.8% average tax rate, you have to subtract your $45,000 with $12,507, which is the equivalent of 18.8%, then you’ll have $32,493 as yearly after-tax income.
For other states, refer to the table below.
| State | Average Tax Rate | Yearly After Taxes |
| California | 18.8% | $32,493 |
| Florida | 15.7% | $37,917 |
| Nevada | 15.7% | $37,917 |
| New Hampshire | 15.7% | $37,917 |
| South Dakota | 15.7% | $37,917 |
| Tennessee | 15.7% | $37,917 |
| Texas | 15.7% | $37,917 |
| Washington | 16.2% | $33,719 |
| New York | 20.7% | $35,669 |
$45000 to Monthly After Taxes
In order to make it easy for you, let’s have an example.
If you live in Florida and have an average tax of 15.7%, all you have to do is subtract it to your monthly income of $3,750 then you’ll have $3,160 to bring home with you. Isn’t that great?
For other states, refer to the table below.
| State | Average Tax Rate | Monthly After Taxes |
| California | 19.7% | $3,010 |
| Florida | 15.7% | $3,160 |
| Nevada | 15.7% | $3,160 |
| New Hampshire | 15.7% | $3,160 |
| South Dakota | 15.7% | $3,160 |
| Tennessee | 15.7% | $3,160 |
| Texas | 15.7% | $3,160 |
| Washington | 16,2% | $3,143 |
| New York | 20.7% | $2,972 |
$45000 to Weekly After Taxes
In weekly after-tax, you have to subtract your weekly income from your average tax rate, and the answer will be the weekly after-tax.
This change is based on the state where you belong.
As per example, your take-home money weekly is $865, and you live in New Hampshire.
So with the proper calculation, you have $695 take-home pay after paying your weekly after tax.
For other states, refer to the table below.
| State | Average Tax Rate | Weekly After Taxes |
| California | 19.7% | $695 |
| Florida | 15.7% | $729 |
| Nevada | 15.7% | $729 |
| New Hampshire | 15.7% | $729 |
| South Dakota | 15.7% | $729 |
| Tennessee | 15.7% | $729 |
| Texas | 15.7% | $729 |
| Washington | 16,2% | $725 |
| New York | 20.7% | $686 |
$45000 to Hourly After Taxes
Next is the hourly after taxes; let’s use New York as an example.
If you have an average tax rate of 20.5%, which is quite extensive, subtracted from your hourly pay of $22, then you earn $17.54 secured in your paycheck.
Hourly after taxes can be changed based on the state you live in.
For other states, refer to the table below.
| State | Average Tax Rate | Hourly After Taxes |
| California | 19.7% | $17.67 |
| Florida | 15.6% | $18.63 |
| Nevada | 15.6% | $18.63 |
| New Hampshire | 15.6% | $18.63 |
| South Dakota | 15.6% | $18.63 |
| Tennessee | 15.6% | $18.63 |
| Texas | 15.6% | $18.63 |
| Washington | 16.0% | $18.53 |
| New York | 20.5% | $17.54 |
45,000 a Year is How Much Biweekly?
Employees are more likely to receive 26 paychecks per year due to the bi-weekly periods, which usually occur every two weeks; there are months that you will be paid three pay periods.
Wonder how to compute your bi-weekly pay? That’s totally easy, here’s how.
Annual Pay / 26 bi-weekly pay periods = Total amount per bi-weekly paycheck
So in this case if you earn 45k per year your biweekly salary is 1730.76 dollars.
The following table show you how much is $45,000 biweekly after taxes in different states:
| State | Before Taxes | After Taxes |
| California | $1,730.76 | $1,389 |
| Florida | $1,730.76 | $1,458 |
| Nevada | $1,730.76 | $1,458 |
| New Hampshire | $1,730.76 | $1,458 |
| South Dakota | $1,730.76 | $1,458 |
| Tennessee | $1,730.76 | $1,458 |
| Texas | $1,730.76 | $1,458 |
| Washington | $1,730.76 | $1,451 |
| New York | $1,730.76 | $1,372 |
Is 45k a Year a Good Salary?
The quick answer to that is yes. $45,000 yearly is a decent salary for a working student or a basic average worker.
However, you need to consider the fact that you’re not paying any debt or loan. Otherwise, 45k a year might not be enough to sustain your lifestyle.
This also depends on the state you are living in; the higher the taxes, the lower your annual income.
Even if you live alone and have no loans or credit card debts, you can still live with your $45,000 yearly salary.
If you are the type of person who can stretch and manage your salary based on your expenses, then having a 45k salary is good enough for you.
Paying monthly bills, unexpected expenditures (such as car breakdown and speeding fines), having a light weekend, and still having $500 is remarkable.
For someone who earns $45,000 annually and can budget it, it feels like living an extremely comfortable life.
Principles and opinions about a $45,000 yearly salary might differ based on your social status.
If you have a family, then more likely, a monthly paycheck is not enough because you have people to provide. The cost of raising children is high and will more likely cut the income.
On the other hand, if you are single, you are more likely to spend the money on yourself and save for your future.
How To Budget for Living on 45k a Year
If you have a take-home pay of $3,000 a month and are wondering how to budget your money for housing, food and so on…
This might overwhelm you a bit; moreover, it is a zero-sum game for you.
Worry less because I will help you how to make a budget for living with 45k a year!
Check my table on how to ideally budget your yearly salary (before taxes).
| Expenses | $45,000 Salary Percentage | Amount in dollars |
| Housing | 20 to 30% | 9,000 – 13,500 |
| Food and grocery | 5 to 12% | 2,250 – 5,400 |
| Clothing | 1 to 4% | 450 – 1,800 |
| Healthcare | 5 to 12% | 2,250 – 5,400 |
| Transportation | 4 to 10% | 1,800 – 4,500 |
| Miscellaneous | 4 to 7% | 1,800 – 3,150 |
Housing
Nothing is more important than being able to afford the comfort of the house.
A decent and affordable home is more likely to lower stress, toxin, and infectious disease, which can improve a person’s physical and mental health.
Other than that, shelter is a basic human need that contributes to human well-being.
In the U.S., the median price of a house is $440,300. Hawaii is leading the list, while West Virginia and Mississippi having the cheapest prices per square foot.
Meanwhile, rent costs are starting by $450 with a national average of $2,495 and utilities might be included depending on the lease.
As a general rule, you shouldn’t spend more than 30% of your gross monthly income on housing.
Depends on where you live in the U.S. it might surpass the suggested amount.
Food and grocery
When grocery shopping, it is hard to resist buying stuff that is either out of your list or, much worse, out of your budget.
Before you even know it, your grocery bill is piling up. In terms of groceries, you must remind yourself to spend within the budget.
Other than that, spending on your groceries depends on your dietary restrictions and preferences.
Like people’s opinion about pineapple on pizza, the monthly grocery varies from person to person.
Based on my budget recommendation, you should allocate between 5 and 12% of your 45k salary to the groceries.
Typically, you can spend $187.5 to $450 on foods per month, which might change based on your diet.
Clothing
This part is quite tricky, especially for people who love spending on clothes.
Most financial experts stated that individuals must not spend more than 5% on clothes from their take-home pay. No matter how much your salary, overspending will affect your budget.
If you calculate your monthly clothing budget by multiplying the amount of your monthly pay by 0.05.
If you take home 3’750 a month, you should not spend more than $187 on your clothes. There are plenty of options to make the $187 work, like thrifting and trade.
To be honest, thrifted clothes are sometimes of the same high quality, since these are also branded clothes. The only difference is it’s much cheaper than brand new.
Healthcare
Whether you like it or not, healthcare is one of the most important things that you need.
Catching a disease or experiencing an accident is something that you cannot avoid. So, investing in healthcare is a must to lessen the burden of paying bigger than what you expected. Apart from that, it also allows you to minimize financial stress.
Before overspending on your healthcare insurance, you must consider your age, health status, eligibility restrictions, and most especially your income.
After doing that, practice keeping at least 10% of your annual pay for your health insurance. This kind of investment will save not only your life but also your pockets in terms of health problems.
Transportation
In terms of transportation, walking is one of the options, and it will be beneficial to your health as well.
On the other hand, riding a bike was also a good alternative for reducing gas emissions and allowing you to exercise. These two are the perfect option to lessen your transportation expenses and let you live a healthy life.
But in case you really need to have a transportation allowance, you should only spend 4% to 10% of your monthly income on your vehicle. That will be around $150 to $375 monthly.
It is highly recommended to have some emergency fund for your car.
Miscellaneous
You almost certainly have a clue about how much you will spend on your food, clothes, and housing, but what about miscellaneous expenses?
These can be uniforms, gifts, ATM, parking, or gym membership fees. You must always bear in mind that you have hidden money in your pocket in case you face this kind of problem.
In terms of miscellaneous fees, you must have at least 4% to 7%, which is about $150 to $260.
This might be a pain in your pocket, but still, something that you need to keep. You can also reduce miscellaneous fees by avoiding unnecessary spending and choosing cheaper things online.
Frequently Asked Question
If you have a $45,000 annual income, there are chances that you are aware that your yearly taxes are around $10,000. If some of your questions remain unanswered, allow us to answer them.
Is 45 000 a good salary for a single person?
Even though $45,000 is a reasonable annual amount, it still depends on what kind of lifestyle you have and how many people you support with your take-home pay.
But one question remains unanswered: Is $45,000 a good salary for a single person? The answer is yes.
If you don’t have a spouse or child to care for, you will more likely live a comfortable life.
But, if you are living alone and paying rent as well as school debts and don’t have any other side jobs or person to split the rent-fee. These situations are worth considering if you are single.
Well, if you are a lucky newly graduated living in the comfort of your parents’ house with a salary of $45,000, then you must save at least half of it for your future.
What kinds of jobs pay 45k a year?
If you are looking for a decent job that pays at least $45,000 a year, fret not, as I have listed it for you.
These occupations offer a median pay from $40,000 up to $60,000. This might be a low start, but at least you have something to keep you going.
Moreover, you can use this job to make way for higher pay as you earn experience.
First is a crane and tower operator, which requires only a high school diploma or equivalent – you can earn $40,000 to $59,000 annually.
If you want to pursue a job while studying and have a burning passion for research, then you can be a survey researcher and make $40,000 to $59,000.
Lastly, a sales representative, which only requires a school diploma or any equivalent certificate, also permits you to earn $40,000 to $59,000.
A win-win situation for all, right?
Is there a tax refund on a $45,000 salary?
Yes. You are still qualified for a tax refund.
However, this might all vary according to various factors such as tax liability, schedule tax payments, and other relevant information to properly compute the overpayment of taxes. Tax returns are filled and requested in an annual manner.
Conclusion
Now I’m certain that you’re done wondering how much you earn per hour with your annual pay of $45,000. To be honest, $22 per hour is not bad if you are single and have no family to worry about. Furthermore, $45,000 is decent take-home pay, especially if you live a debt-free life and only have yourself to think about.
There are several ways to earn $45,000 yearly, including freelancing, assisting a family business, and being a research surveyor or sales representative. After receiving your weekly pay, remember that you still have taxes to pay and a budget for a living to do. This might sound a handful of thoughts, but rest assured that if you carefully handle your finances, 45k a year is more than enough for your lifestyle.
