Last Updated: October 6, 2022
According to the Bureau of Labor Statistics, the median weekly wage in the US in the first quarter of this year was $1,037 a week. This would amount to approximately $26 an hour.
But what if your hourly wage wasn’t anywhere close to that? What if, let’s say, you made $12 an hour?
If so, this would lead to the following question: 12 dollars an hour is how much a year, exactly? What would your income look like on a weekly or a monthly level?
To find out, you can either do the calculations yourself with an online calculator or keep reading this article as we do them for you.
12 Dollars an Hour is How Much a Year Before and After Taxes?
Before starting with the calculations, we must state that the US tax system differentiates between two types of taxes: federal and state income taxes. The rates of the latter are different in every state, while federal income tax rates are set by federal law and overseen by the Internal Revenue Service (IRS).
Aside from the applicable tax rates, there are also certain deductions that affect the total tax amount you pay.
A deduction allows reducing the amount of your taxable income and varies according to age and filing status. The most widely applicable one is the standard tax deduction.
So, how much can you make in a year with a $12 hourly wage before taxes?
To determine this, let’s assume that you work:
- 40 hours a week
- 52 weeks a year (260 days a year)
Using these parameters for calculation, we can conclude that $12 an hour gets you a gross income of $24,960.
12 dollars an hour is how much a year after taxes?
To calculate your annual salary after taxes, you have to consider the federal income rate for the current year. After that, you should divide the income tax expense by your earnings before taxes. Using these parameters, you’ll get your annual net salary.
For example, if you work for:
- $12 an hour
- 40 hours a week
Your gross annual income is $24,960. If you’re a single filer, your standard tax deduction for the year 2022 is $12,950.
To get your taxable income, just subtract the deduction from your gross income:
$24,690 – $12,950 = $12,010
Since your taxable income is $12,010, this puts you in the 12% tax bracket. However, this doesn’t mean you give 12% of your taxable income on taxes. You actually have to pay 10% on the first $10,275, and 12% on the rest:
$10,275 x 10% = $1,027.5
$1,735 (the amount over $10,275) x 12% = $208.2
This means that your total federal income tax is $1,235.70. Therefore, $12/hr would amount to an annual salary of $22,450.98 after taxes.
How much a year is $12 an hour if you work part-time?
Anyone working less than 30-35 hours a week is considered a part-time employee. If you fit this description, how much can you expect to earn per year?
If, for example, you work:
- 30 hours a week
- 52 weeks (260 days) per year
Your gross annual income would amount to $18,720. To your taxable income, just perform the standard deduction:
$18,720 – $12,950 = $5,770
In that case, your taxable income would be less than $10,275 per year and would thus put you in the 10% tax bracket. This means that you only have to give 10% of your income on taxes:
$5,770 x 10% = $577
$18,720 – $577 = $18,143
Therefore, your annual income after taxes would be $18,143.
12 Dollars an Hour is How Much a Week?
If you work in a company that pays $12 an hour for 40 hours a week, your weekly wage after taxes would be about $431.75. And if you’re a part-time employee working 30 hours a week, your weekly wage after taxes amounts to about $360.
And, how much is $12 an hour biweekly? If you have a full-time job, you will make $960 every two weeks. Meanwhile, a part-time employee working 30 hours a week could make $720 biweekly.
$12 an Hour is How Much a Month?
If you are a full-time worker, your gross monthly income would be $2,080, or $1,870.92 after taxes.
Those working 30 hours can expect to earn about $1,560 per month gross or $1,511 after taxes.
Companies that Pay $12 an Hour
If you are looking for a job that pays at least $12 an hour, here are some ideas:
- Walmart: if working in retail is something you can see yourself doing, Walmart might be a good choice. Those working as cashiers make approximately $12.88 per hour, while the average wage at Walmart is $13.19 per hour.
- Subway: working at a fast-food restaurant might not be such a bad idea either. For example, service workers at Subway make approximately $12.68 per hour.
- Grubhub: if setting your own work hours and workload sounds appealing, you can always work as a Grubhub driver. You could make $12 per hour or even double that amount, depending on how hard you’re willing to work.
- Planet Fitness: while wages for different jobs at Planet Fitness vary across the country, there are positions for which employees get paid $12 per hour or more.
- Chipotle: this chain of Mexican food restaurants is always hiring, and many entry-level positions there pay even at least $12 per hour, if not more.
Final Thoughts: Is $12 an Hour a Good Pay?
So, 12 dollars an hour is how much a year? Is it enough to live comfortably?
As already stated, $12 an hour will amount to about 22,490 per year after taxes. While a $12/hour wage is above the federal minimum of $7.25 per hour, whether or not it’s enough for you depends on your needs.
Realistically, if you rent a home with roommates, share the utility costs, and keep food costs at approximately 10% of your monthly income, $12 an hour should be enough to cover the basic costs of living.
However, if you’d like to be independent and live on your own, you should probably look for jobs that pay more than $12 an hour.