$21 an Hour Is How Much a Year?

Are you considering getting a job paying $21 an hour? Whether an upgrade or downgrade from your current wage, you’d likely want to know what you’d be earning per year.

So, how much is $21 an hour annually for a 40-hour week?

Assuming you work full-time and take no time off during the year, the formula is:

• $21 an hour x 40 hours a week x 52 weeks = $43,680 a year

But how much would that be after taxes? Also, what monthly salary can you expect? Our guide will cover all of that to make your financial plans a bit easier.

$21 an Hour Is How Much a Year After Taxes?

The $21 an hour annual gross salary can be a good income, but it’s essential to consider the taxes that will be deducted from it.

Federal income tax

The first thing to remember is that the federal government imposes a progressive tax rate, which means that the more money you earn, the higher the percentage of taxes you will have to pay.

We’ve already established that the $21 per hour annual salary amounts to $43,680. This is your gross pay, though. Now, let’s see how much you will actually take home.

Let’s assume you’re a single filer using the 2022 standard deduction of $12,950. Subtracting it from your total annual income results in $30,730. This is your taxable income, which puts you in the 12% bracket, according to the 2022 federal tax table. But you won’t actually pay 12% on the whole amount. You’ll pay:

• $10,275 taxed at 10% = $1,027.50
• The remaining $20,455 taxed at 12% = $2,454.60

So, the income tax you need to pay is $3,482.10 for the total salary of $43,680, and you are left with $40,197.90. But there are more taxes to consider…

FICA and state income tax

Your $21 an hour, your annual salary is subject to other taxes such as FICA (Federal Insurance Contributions Act) and the state income tax.

FICA sets aside 6.2% of your gross wages towards your social security tax and 1.45% from the gross wages to Medicare tax. This will set you aside another $3,341.50.

Finally, after deducting the average state and local tax rates, your take-home annual salary would be around $32,500.

When it comes to state income taxes, the rates vary greatly. Nine states don’t apply any. These are Washington, Nevada, Wyoming, Sought Dakota, Texas, Alaska, Florida, and Tennessee. Ten have a fixed rate, while 32 use a progressive system. The highest state tax rates are in New York (14.71%), Oregon (14.69%), California (13.30%), New Jersey (11.75%), and Hawaii (11%).

How Much is $21 an Hour Weekly?

Now that we know the difference between your net and gross income, it’s a good idea to see what funds are at your disposal weekly. For a 40-hour work week, your gross income will be $840. After taxes, you’re looking at a net weekly salary of $708.

Sometimes planning your budget bi-weekly is more convenient. With $21 per hour and an annual salary of $43,680 before taxes, you can expect a gross bi-weekly wage of $1,680, or $1,256 net.

And your monthly gross income will be $3,360. After taxes, your funds per month will be around $2,512.

Remember, if you’re paid an hourly rate rather than a fixed salary, you are subject to overtime laws. Any hours worked on top of the standard 40 per week receive an overtime payment of an additional 50%. Therefore a gross hourly rate for overtime work would be $31.5.

Final Thoughts

So, 21 dollars an hour is how much a year?

The answer is $43,680 gross and around $32,500 net. This is assuming you work full time, take no unpaid vacations, and don’t do overtime. But for more precise figures, you can use an online calculator to factor in the variables.