How much could you make a year with a $13 hourly wage?
Well, not a fortune, but there is no place for worries. $13/hr is still better than the federal minimum wage of $7.25/hr. Hence, you can earn a living.
Now, assuming you work 40 hours per week throughout the whole year without taking any vacations, your gross annual salary will be calculated like this:
- 52 weeks x 40 hours per week x $13 per hour = $27,040 before taxes and deductions
There, you got your answer to the question $13 an hour is how much a year.
Yet, there’s more to know if you plan to live on a $13 hourly wage. Read on!
$13 an Hour Is How Much a Year After Taxes?
Probably, you’re familiar with the US tax system, and you know that the salary you get to take home is your net salary — after taxes and deductions.
To explain the difference between gross and net salaries, we need to continue with our little calculations.
Let’s keep up with the same assumptions:
- Working full-time — the standard 8-hour shift or, in other words, 40 hours per week
- Not taking vacations or breaks
Also, keep in mind that the normal calendar year comprises 52 weeks.
So, how much is the $13 per hour annual salary after taxes?
Federal, FICA, and state taxes
There are three types of taxes the citizens of the US need to pay — federal, FICA, and state tax. So, let’s see how these deductions affect your total annual salary.
Due to the US progressive tax system, the federal tax is the most complex. Meaning the more you earn, the higher your tax rate will be. For a better understanding, take a look at the federal tax calculations that follow.
First of all, we need to determine your taxable income using a standard deduction. As there is more than one, we’ll use the standard deduction for single taxpayers of $12,950:
- $27,040 – $12,950 = $14,090
A taxable income of $14,090 places you in the 12% tax bracket, the second lowest tax rate. This tax rate leads to the following tax calculation:
Lawfully, on the first $10,275, you pay 10% of your income on taxes: $10,275 x 10% = $1,027.5
And you pay 12% on the rest of the amount over $10,275: $3,815 x 12% = $457.8
The final result is $1,485.3 annual federal tax.
So, when the federal tax is deducted from your gross salary, you’re left with $25,554.7.
Next in line is the FICA tax. What do we know about it? It stands for Federal Insurance Contributions Act, and it’s deducted from each paycheck. The FICA tax you’re obliged to pay provides benefits for children, retirees, and the disabled.
So, how much FICA taxes do you pay for a $13-an-hour yearly salary? Take a look:
- 6.2% for Social Security tax or $1,676.48
- 1.45% for Medicare tax or $392.08
That would be a total of $2,068.56 for FICA taxes. And when this amount is also deducted from your salary, you’re left with $23,486.14
The last one is the state tax. Notably, nine states have no income taxes — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. So, consider yourself fortunate if you live in one of these states. In that case, you’re left with a $23,486.14 net annual salary after taxes.
As for the rest of the US states, they apply different rates for state income taxes. So if you happen to live in a state with an income tax, we recommend thoroughly researching how much you’ll pay in state taxes.
$13 an Hour Is How Much a Year Part-Time?
Asking yourself how much you’ll earn working part-time? Usually, part-time employees work 20 hours per week. And, if we take this assumption along with not taking any vacations or breaks, let’s see how much your total salary will be:
1,040 hours per year x $13 per hour = $13,520 gross annual salary.
Note: The total 1,040 hours are obtained by multiplying 20 hours per week by 52 weeks (the number of weeks in a calendar year).
How Much Is $13 an Hour Weekly?
Considering the same assumptions about the 40-hour work week, for $13 an hour, your gross weekly pay will be $520.
The calculation is as follows:
- $13 an hour x 40 hours a week = $520
Additionally, let’s take a look at your gross biweekly salary. This one will be easy to calculate. Just multiply your total weekly pay by two. And the result is a gross biweekly salary of $1,040.
13 Dollars an Hour Is How Much a Month?
The fact that one month has four weeks, along with the assumption that you work 40 hours weekly, we’ll calculate how much your gross monthly income will be for $13 an hour.
And the calculation goes like this:
- 40 hours per week x 4 weeks x $13 hourly wage = $2,080 monthly salary before taxes.
For more precise calculations, you can use some of the many online calculators out there.
Can You Live Off of 13 Dollars an Hour?
Actually, it’s not as bad as it sounds. With a $13 hourly wage, you’re way above workers who earn the federal minimum wage. Additionally, you earn more than the average Starbucks worker and Burger King employee.
Based on your situation, you should decide if this salary suits you. We’d say you get to pay rent, utilities, public transport, and groceries. As for saving, that may be a challenge.
But remember, there is always a place for a raise.