$23 an hour is how much a year? Do you want to know how much you earn with an hourly job? We will help you compute your income for each pay period in this article. Let’s go!
Working in a job that pays hourly, you can’t help but wonder if your income is enough to have a comfortable life by yourself or with your family.
To see your financial situation clearly, we will calculate how much you earn in a year, month, week, or day according to the number of hours. Plus, we’ll go and check your annual take-home pay after taxes.
We hope that having this knowledge can help you manage your finances better, have long-term money goals, and set you off on your journey to financial empowerment. Read on.
$23 an Hour Is How Much a Year?
Getting a job that offers $23 an hour is not easy, but you have achieved this goal and now want to know how much you will be making every year.
You can calculate the total number of hours in a year by multiplying 40 working hours per week (8 hours/day * 5 days/week) by 52 (total number of workweeks in a calendar year), which will give you a total of 2,080 hours worked in a year.
If we multiply the $23 hourly rate by the total number of hours worked in a year, you will make $47,840 as your gross annual pay, assuming that you work full-time.
As a part-time worker doing only 4 hours a day instead of 8, you will get paid $23,920.
Keep in mind that these annual figures may increase or decrease depending on your days off, unpaid sick leave, or overtime work.
How Much Is $23 an Hour Annually After Taxes?
The yearly income stated above does not include taxes, which can be higher or lower.
You may be entitled to exemptions or be charged less depending on your status and tax bracket and subject to regular deductions for federal and state taxes (except for some states like Texas) and items such as Medicare, social security, and disability insurance.
The applicable income tax percentage varies in different states. Some places do not impose state taxes, like Texas. So, we will use two states as an example for these computations: Texas, a no-tax-state, and California, which has the highest tax percentage in the US.
With a total yearly income of $47,840 at a $23 hourly rate, as a full-time employee, your net take-home pay for a year will be $38,016 in California after deductions of $9,824, and $40,144 in Texas with $7,696 in taxes.
However, if you only work part-time for 4 hours a day and 5 days weekly at $23 hourly ($23,920 gross annual pay), you will make around $23,920 a year. After deducting taxes ($3,620 in California and $3,006 in Texas), your yearly net take-home income will be $20,300 and $20,914.
How Much Is $23 an Hour per Month?
$23 an hour will allow you to earn a gross monthly income of $3,987. This amount is derived from dividing your gross annual pay of $47,840 by 12 (months in a year).
In California, your take-home pay would be from $3,168 after-tax deductions of $819, while you would be bringing home $3,346 after $641 in taxes if you live or work in Texas.
But, if you work for fewer hours or overtime, your monthly income will vary accordingly.
Let’s say you work 20 hours a week at a $23 hourly rate. Your monthly income will be divided in half, netting you $1,994. Therefore, that will get you a monthly take-home pay of $1,692 in California after $302 in deductions; in Texas, you will receive $1,743 after taxes of $251.
If you are entitled to overtime pay, it can help you earn a little more; days off, on the other hand, will lessen your earnings.
How Much Is the $23 Hourly Rate per Week?
Your gross annual income ($47,840) divided by 52 workweeks a year will give $920 as your total weekly income if you work full-time. You can increase this weekly pay by doing overtime to be entitled to many companies’ bonuses and benefits.
After taxes ($189 in California and $148 in Texas), you will get a net weekly salary of $731 and $772, respectively.
If you are a part-timer putting in 20 hours a week, you will receive a gross pay of $460 each week. Your net weekly income will be $390 in California and $402 in Texas after $70 and $58 in tax deductions.
How Much Is $23 per Hour Biweekly?
You can easily calculate your biweekly income by multiplying your gross weekly salary ($920) by 2, giving you $1,840 as your total biweekly salary.
Depending on your home state, your net biweekly take-home pay could range from $1,462 to $1,544 in California and Texas after taxes of $378 to $296.
Similarly, if you work part-time (20 hours/week * $23/hour * 2 weeks), your biweekly gross income would be halved at $920. Your after-tax income would be $731 to $772 after taxes of $189 (California) to $148 (Texas) have been deducted.
How Much Is $23 an Hour per Day?
If you work full-time for 8 hours daily, multiplied by 23 dollars, it will give you $184 daily as the total value of your gross daily income. Your daily after-tax income would be $146 in California after a $38 tax deduction and $154 in Texas after $30 in taxes.
If you are one of the part-time workers with 4 hours of work per day, you can earn $92 each workday. Your net daily salary will be $78 in California and $80 in Texas after taxes of $14 and $12, respectively.
Remember that these amounts, whether full-time or part-time, have yet to consider your days off or overtime hours. So, your actual annual income may be more or less than the stated numbers. You also have to think of taxation after.
Summary – $23 an Hour Is How Much a Year?
Here’s a table to show you how much money you will earn if you work full-time with a $23 an hour pay rate.
|$23 per hour – Full Time||Total Income (before taxes)|
|Yearly salary (52 weeks)||$47,840|
|Weekly income (40 Hours)||$920|
|Bi-Weekly income (80 Hours)||$1,840|
|Daily income (8 Hours)||$184|
|Net Estimated Monthly Income (after taxes)||$3,168 to $3,346|
If you work full-time consistently, an hourly rate of $23 an hour brings you an annual gross income of $47,840. However, the values may be less if you work part-time. It means that your gross annual income is still lower than the average personal income of US full-time wage workers, which is $63,214.
Tips to Live on $23 an Hour
A job paying you a $23 an hour salary can be difficult to find, but if you look around and pay attention, there’s a lot of available work with that hourly income.
In the end, whether you earn 23 dollars an hour or less, what matters is you making sure you spend your money wisely. If you don’t keep your finances sorted, you can be a millionaire and still fail to cover your expenses.
Now, we will share some tips to help you manage your finances with an hourly income of $23:
Plan, Budget, and Monitor Your Money
You may be making $14 or $40 an hour, but what’s important is to make a budget and track how you allocate your financial resources.
Once you have a clear idea of how much income you earn in a pay period, you can easily determine how much income will be spent on the essential expenditures like your rent, utilities, grocery, rent, etc.
Spend Less Than You Earn
If you want to set some cash aside for the rainy day or avoid being stuck in a debt cycle, you need to be cautious about spending your money. The rule of thumb should be to keep your cash outflow less than the inflow. This will help you keep your expenses in check and encourage you to save more.
Work on Increasing Your Income
If you need to make more money to support your lifestyle or achieve your goals, you can find ways to make more money.
Do you have a hobby or skill? Turn it into a profitable business! You can also find a side hustle or online gigs suitable for you to make extra bucks.
Consider these helpful tips on how to earn extra cash:
- Take part in online surveys. Read through this post to find out the best online survey sites to earn cash and gift cards. It’s a good way to earn extra income from the comfort of your own home. Just answer questions and share your opinions while helping companies improve their products and services.
- Survey Junkie. One of the famous, reliable, and easy-to-use survey sites, you will receive a $5 bonus and earn points which you can exchange for gift cards or cash if you sign-up. Learn more about Survey Junkie and make more money this year.
- InboxDollars. Sign up with this link and get a $5 bonus after you have completed your first job. Learn more about the platform through our InboxDollars review.
- Swagbucks. Check out what we think about the popular survey platform through this review. You have a $5 sign-up bonus waiting for you.
- Sell your skills as a freelancer. Online job platforms like Fiverr, FlexJobs, and Upwork connect employers and freelance workers, making it easier for you to find jobs. If you have marketable skills like software development, marketing, proofreading, graphic design, etc., you should try to apply. Make a great resume and list your profile at these job sites.
- Be an online tutor. 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!
- Flip items for profit. If you are good at finding goods and reselling them at a profit, there are many online sites like Craigslist, Letgo, eBay, and Amazon where you can earn cash through this method.
- Launch your acting career as a phone actress. Depending on the company’s business, this could entail answering questions, being online technical support, or simply talking to clients to ease their loneliness.
- Buy and sell goods at online flea markets. You can either sell your own preloved or unused goods in these online flea markets or flip cash by buying inexpensive items and selling them for higher prices.
- Play online games. If you are a gamer, this is your chance to earn money while enjoying your hobby. You can try Mistplay, where you can earn points, which you can exchange for gift cards or cash.
Invest Your Money
Investing your money will increase your net worth.
If you are up for more risk-taking than putting your money in a bank, investing could provide you with passive income. You could invest in stocks, bonds, or exchange-traded funds (ETFs) as you get the hang of it.
Check out these related articles to get you started:
What Jobs Pay $23 an Hour?
A job giving $23 an hour pay can be challenging to find because, according to the Fair Labor Standards Act (FLSA), the prevailing minimum wage for employees is $7.25 per hour.
However, there are a few exceptions, as some US states also have specific minimum wage laws.
We have listed some interesting jobs that pay a $23 an hour salary. Read everything carefully before applying and find the most suitable job that matches your skillset to increase your chances of success during hiring.
- Gate Checker at PepsiCo
- Room Attendant
- Asset Protection Agent
- Jail Booking Specialist
- Library Assistant
- House Cleaner
- Warehouse Order Picker
- Paid Socials Specialist
- Laboratory Technician
- Call Center Representative
Is $23 an Hour Good?
$23 an hour is a very good salary. You can make around 3,987 dollars per month before taxes, which is in the good salary zone because, according to the Bureau of Labor Statistics (BLS), the median weekly personal income for full-time US workers is $1,037.
Just make sure that you spend your money well to grow with time. Most people these days fail to secure a job with a $23 an hour salary, so if you have one, ensure that you get the best out of it by saving or investing smartly.
Can You Live on $23 an Hour?
Yes. You can live a great life with a $23 an hour salary, assuming that you don’t have a luxurious lifestyle.
$23 an hour can cover all your basic expenses, especially if you reside in a place where living costs are less expensive or where state taxes are lower or nonexistent, such as one of these locations in the US without state taxes:
- South Dakota
Conclusion – $23 an Hour Is How Much a Year?
If you earn $23 an hour, your gross yearly pay as a full-time employee is $47,840. Depending on your home state, you will take home an annual income ranging from $3,168 to $3,346.
Remember that an hourly rate of $23 is 3 times higher than the prevailing minimum wage rate of $7.25 an hour. Unless you have major debts or a lavish lifestyle, you can live a comfortable life. Do let the tips shared in this article set you off on your path toward financial independence.
Check out the related articles if you want to learn more about how much you will make in a year at different pay rates:
- $12 an Hour is How Much a Year?
- $24 an Hour is How Much a Year?
- $30 an Hour is How Much a Year?
- $35 an Hour is How Much a Year?
- $45 an Hour is How Much a Year?