$18 An Hour Is How Much A Year? Best Tips To Make Money

Are you earning an hourly rate of $18? Have you ever wondered: $18 is how much a year? You may be crunching numbers to assess if your salary is good enough, particularly if it is an hourly wage. We’ll help you determine how to maximize and save more of your income.

A company has hired you and offered you an $18 hourly salary, and now, you are wondering how much money you will be able to make with this rate. Is it enough for you to live comfortably? 

This article features a scenario where the pay rate is $18 an hour. We will determine how much you can earn in a year, month, week, or day according to the number of hours you work. 

We will also look at your after-tax pay to know how much income you will have for each pay period.

$18 an Hour Is How Much a Year?

You will make a gross annual salary of $37,440 if you work full-time. 

Here’s how you calculate it. Multiply the hourly salary by the total number of hours worked in a year. Working for 8 hours daily at 5 days a week makes 40 working hours. 

Then, you will multiply 40 hours per week by 52 weeks per year, giving the value of 2,080, the total number of hours worked in a year. 

  • 40 hours * 52 weeks = 2,080 hours
  • 2080 hours * $18 = $37,440

If you only work 4 hours a week, divide the above total yearly income by 2, and you will get $18,720 as your take-home pay as a part-time worker.

Bear in mind that these figures can go up or down, depending on whether you have worked extra hours and are entitled to overtime pay or have taken time off or unpaid sick leave. 

How Much Is $18 an Hour Annually After Taxes?

Our income is subject to taxes and other federal deductions, such as social security, Medicare, and insurance. Thus, a fixed amount is deducted from your paycheck regularly. The annual take-home income is the net income after the taxes and other deductions have been subtracted from the gross figure.

Please note that the money you get varies depending on your situation. You may get specific exemptions depending on your tax bracket, personal circumstances, and your home or residence state. 

And then, there are taxes. Different US states apply different tax rates; unless you live in a place that does not impose state taxes and only have to pay for the federal deductions. 

For these calculations, let’s determine the range of tax deductions from two extremes: a no-tax-state such as Texas and California with the highest tax percentage in the US. 

If you work full-time with $37,440 as an annual income at a wage rate of $18 an hour, your take-home pay will range from $30,437 to $31,788 in California and Texas, respectively.

Similarly, if you work part-time (20 hours a week) at $18 an hour, divide your gross annual income by 2 ($37,440), giving you a total salary of $18,720. $2,489 to $2,049 will be deducted in taxes, depending on where you live or reside. 

Thus, your net yearly wages as a part-timer would be $16,234 (California) to $16,671 (Texas). 

How Much Is $18 an Hour per Month?

How much can you make in a month if you work full-time at an $18 hourly rate? You must divide the earlier gross annual income by 12 months ($37,440/12 months). It will give us the amount of $3,120 as the gross monthly pay. 

As a full-time employee, suppose you work 8 hours daily for 5 days a week at an $18 hourly rate. You will, then, earn a net pay from $2,536 to $2,649, depending on where you reside or work.

If you only work 4 hours a day as a part-timer, you will get a $1,560 monthly income. Taxes range from $207 in California to $171 in Texas, which nets you a monthly income from $1,353 to $1,389.

Woman using calculator and writing in notebook
Image credit: IgorVetushko/Depositphotos.

How Much Is $18 Hourly Rate per Week?

$18 an hour salary will allow you to make around $720 per week before taxes as a full-timer. 

To calculate your gross weekly pay, multiply your total annual income ($37,440) by 52 weeks (number of weeks in a year), giving you $720 as your total weekly income.

If you are a part-timer working 20 instead of 40 hours a day, that amount will be halved, making your gross weekly income $360.

If you deduct taxes from such figures, the take-home pay will range from $585 in California to $611 in Texas for full-time workers. After deductions, part-timers will get paid from $312 to $321. 

How Much Is $18 per Hour Biweekly?

Your biweekly income, if you earn $18 every hour, will be $1,440 before taxes if you work full-time. Just as we calculated the weekly salary, your biweekly salary can be calculated by multiplying the weekly salary by 2 ($720/week * 2 weeks). 

To a full-time worker earning $1,440, taxes will decrease your biweekly income to $1,171-$1,223. 

As a part-timer working 4 hours a day instead of 8, just halve your gross weekly pay ($720/2 weeks) and multiply by 2 to get your total biweekly income of $720. If you live or work in California, your take-home pay will be $585 after taxes. Your salary will be $611 after taxes if you are Texas-based.

How Much Is $18 an Hour per Day?

Finally, we look at your daily earnings if you earn $18 an hour. If you work 8 hours a day, you can make $144 daily. If you are a part-timer with only 4 hours of work per day, you earn $72 daily. 

If you work full-time, your daily after-tax income would be $117 in California and $122 in Texas. If you are a part-timer, your net daily salary will be $62 in California and $64 in Texas.

Summary – $18 an Hour Is How Much a Year?

Here is a summary of how much your paycheck will be if you work full-time at an $18 an hour pay rate.

$19 per Hour (Full-Time)Total Income (Without Taxes)
Yearly salary (52 weeks)$37,440
Monthly salary $3,120
Weekly income (40 Hours)$720
Bi-Weekly income (80 Hours)$1,440
Daily income (8 Hours)$144
Net Estimated Monthly Income (After-Taxes)$2,536 to $2,649

Tips to live on $18 an hour

Considering the fact that you make 2160 dollars every month after taxes.

Set achievable financial goals. It could be a short-term goal like sticking to your budget and saving for a car, or a long-term one such as retiring early with a cushy nest egg.

Make a budget and track your expenses. No compensation will be good enough unless you have a realistic budget and good spending habits.

You can also earn more money by doing side hustles or taking part-time jobs.

  • Join online surveys to earn cash and gift cards. Here are some of the best sites:
    • InboxDollars. Read our InboxDollars review and sign up for free, and you’ll even get a $5 sign-up bonus when you use this link
    • Swagbucks. A $5 bonus awaits you when you sign-up with Swagbucks. Learn more through details about the platform in our full Swagbucks review.
    • Survey Junkie. By joining one of the most popular, reliable, and easy-to-use survey websites, you will receive a $5 bonus and earn points which you can exchange for gift cards or cash. Learn more about the platform in our Survey Junkie review and make more money in 2022.
  • Flip items for profit. If you are good at finding goods with a great value and reselling them at a profit, you can make money on online sites like Craigslist, Letgo, eBay, and Amazon. You can also buy secondhand items or sell your own preloved or unused goods in online flea markets.
  • Get a data entry job. You can earn cash while working at home. Basic requirements include typing skills, attention to detail, and computer and Internet connection.
  • Be an online transcriptionist. If you have good grammar, pay keen attention to details, and have a good headset and reliable internet, you can work as a transcriptionist. Here’s a transcription guide to getting you started.
  • Bring out your Inner Teacher. Elementary, middle- to high school, and even college students need tutoring help in English and other in-demand subjects like math and science. Translate your teaching skills into cash now!
  • Work as a virtual assistant. Working from home with flexible hours, you can do your tasks as virtual support for the company’s full-time staff. The work could range from routine office stuff like answering emails to managing the boss’s schedule. 
  • Sell your skills as a freelancer. Online job platforms like Fiverr, FlexJobs, and Upwork can bring employers and freelance workers together. So, list your profile at these job sites if you have marketable skills like software development, marketing, proofreading, graphic design, etc.

Start investing. Invest your money smartly, and it will give you your hard-earned money back if not profitable. 

Alternatively, you can make passive investments in stocks, bonds, or exchange-traded funds (ETFs) and keep track of the market movements to sell and buy at the right time to increase your income. Read our related articles to get you started investing in different stock market funds: 

What Jobs Pay $18 an Hour?

If you are looking for a job that pays an $18 an hour salary, we have listed some interesting occupations. Make sure to create an awesome resume to land one of these jobs.

  • Traveling Merchandiser for Grocery Retailers
  • Display Decorator
  • Crew Scheduler
  • Warehouse Worker
  • Traffic Control Flagger
  • Part-Time Mobile Sales Expert
  • Nursing Assistant
  • Pizza Delivery Crew
  • Appointment Setter
  • Residences Concierge
Counting Money MSN
Image Credit: TanyaFrolova/Depositphotos.

Is $18 an Hour Good?

$18 an hour is a good salary. Making $37,440 a year will allow you to live a comfortable life, depending on your area and the number of persons in your household. In some countries or US states, housing costs are way more expensive than in others, making an $18 hourly salary inadequate for covering all the expenses. 

Some states impose low-income taxes; some even have no state taxes. You can reconsider living or working in these places. For instance: 

  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Tennessee
  • Texas
  • Wyoming

The US Fair Labor Standards Act (FLSA) sets the prevailing federal minimum wage as 7.25 dollars per hour. If you are earning $19 hourly, it is almost triple the amount some citizens earn. 

Different states have their own mandated minimum wage rates ranging from the minimum (Alabama) to $15.90 in the District of Columbia. So, you may be better off if you reconsider the state where you live or work.

Can I Live on $18 an Hour?

Forbes reported that an annual pay of $29,120 barely makes it to the category of “middle income” or middle class; an individual must earn between $30,003 to $90,010 to qualify. However, according to the Bureau of Labor Statistics, eighteen dollars an hour or $720 a week is on the low end, considering that $1,037 is the latest weekly median income for a full-time US worker. 

So, yes, you can live on an $18 hourly pay rate or $37,440 annual income, especially if you live solo. 

However, this may not make ends meet if, for example, you are the sole income source in a family with four people, you have outstanding debts, or you live a high-maintenance lifestyle.

Suppose you want to earn extra money and save even more. You can consider working more hours or finding less expensive alternatives to your current lifestyle choices. For example, moving to cheaper accommodation or getting an apartment with a roommate may be options.

Conclusion – $18 an Hour Is How Much a Year?

Earning $18 an hour translates to a gross annual income of $37,440. Depending on where you live, your current obligations, and how you manage your money, that amount can enable you to live comfortably.

Having a grasp of your regular earning capacity and limitations would serve you well in setting financial goals to make a comfortable living. On top of the list are managing your finances through budgeting and finding ways to earn more money. 

If you are now wondering how much others with different paychecks every pay period, head on to our other posts on the subject: