$40 An Hour Is How Much A Year: 2024 Improved Calculation

Whether you’re an employee aiming for a promotion or considering a job change that pays $40 per hour, you may ask yourself, “$40 an hour is how much a year?” Take out your pen and paper, as we’ll address your financial questions individually.

It’s common to calculate how much they make hourly, daily, weekly, biweekly, monthly, and yearly with their salary. Listing it down and seeing how much you earn helps you to know how much they can save and spend on their needs and wants.

If you are or will soon be making $40 an hour, we will help you calculate your gross earnings and estimate your deductible tax and actual take-home pay. We have also added some useful tips to ensure you still live comfortably, along with information on jobs that offer this hourly wage if you plan to leave your job soon.

$40 an Hour Is How Much a Year? 

To get a yearly estimate for your earnings at $40 per hour, let’s assume an 8-hour workday, 5 days a week, for 52 weeks. That totals to around $83,200 annually.

This represents your gross annual salary at $40 per hour, assuming you did not take any weekdays off and did not work overtime or under time. Please note that this calculation does not include bonuses and other monetary benefits.

In another example, let’s say you work a part-time job with a $40 hourly rate. Assuming you work only 4 hours a day for 5 days, that means 20 hours a week. Multiply it by 52 weeks, leaving you $41,600 a year. 

How Much Is $40 an Hour Annually After Taxes?

While making $83,200 a year sounds good, this isn’t what you take home due to taxes. As an employee, you are entitled to tax exemptions depending on your status, tax bracket, and where you or your company resides. You must also consider other deductions, such as Social Security and Medicare.

In the United States, your applicable tax percentage varies depending on the state you work or live in. You may refer to this online tax calculator to learn more about your state’s tax percentage.

We will try to compute your net or total pay after taxes in different tax percentages. Let’s take the top three states: California, Texas, and Florida.

If you work full-time (8 hours a day, 5 days a week) in California, you’ll be deducted an average of 27.7% total tax, which means you take home $60,125 a year.

Meanwhile, those who reside in Texas and Florida have bigger take-home pay since they do not have a state income tax. For a full-time job earning $40 an hour, you’ll take home $65,763 a year after deductions. 

How Much Is $40 an Hour per Month?

If you make $40 an hour, you earn $83,200 annually (or in 12 months). We’ll divide these annual earnings by 12. $83,200 divided by 12 is $6,934 — your monthly gross pay for a full-time job. Your monthly net salary will be $5,011 if you reside in California, while it’s about $5,481 in Texas and Florida, with total tax deductions of $1,923 and $1,453, respectively.

The figures above are still subject to change depending on your working hours or if you took a day off for the month. 

Meanwhile, you must divide your monthly salary in half if you work part-time. Your monthly net pay will be $2,805 in California after $662 in deductions and $2,932 in Texas and Florida after $535 in deductions.

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Image Credit: TanyaFrolova/Depositphotos.

How Much Is the $40 Hourly Rate per Week?

Now, calculate how much you earn weekly with a $40 hourly rate. The easiest way is to divide your annual gross pay of $83,200 by 52 weeks, representing the total work weeks in a year. This calculation will give you your total earnings. So, $83,200 divided by 52 equals $1,600. This is how much you earn weekly.

So, if you work a full-time job, your weekly pay after taxes would be $1,156 in California and $1,265 in Texas and Florida. If you only work part-time, your net pay would be $647 in California and $677 in Texas and Florida.

How Much Is $40 per Hour Biweekly?

Here is the computation of how much you make biweekly if you earn $40 an hour. If you’re a full-time employee, you have to multiply your weekly income of $1,600 by two, which gives you $3,200. The after-tax income would be $2,313 in California and $2,529 in Florida and Texas.

As for part-timers, your biweekly gross income would be $1600, with a net pay of $1,294 for those who work in California and $1,353 for those in Florida and Texas.

How Much Is $40 an Hour per Day?

Determining your daily income if you earn $40 an hour is simply multiplying your hourly rate by your work hours in a day. So, let’s say you work 8 hours daily as a full-time employee. That would be $40 time 8, which is $320 — this is how much you make daily. This is still subject to change when overtime pay is added to what you earn in your regular work hours.

Meanwhile, your after-tax net income for the day would be $231 in California and $253 in Texas, after deductions of $89 and $67, respectively.

Summary – $40 an Hour Is How Much a Year?

Here’s a summary of the calculations to see how much you make with $40 an hour:

$40 per Hour – Full-TimeTotal Income (Before Taxes)
Yearly Salary (52 weeks)$83,200
Monthly Salary$6,934 
Bi-weekly Income (80 hours)$3,200
Weekly Income (40 hours)$1,600
Daily Income (8 hours)$320
Net Estimated Monthly Income (after taxes)$5,011 to $5,481 

Tips To Live on $40 an Hour

$40 an hour is significantly higher than the national average hourly earnings in the United States. While it can be a high hourly rate, it still boils down to your lifestyle on how much you spend and save with your earnings.

Here are some tips for living on a $40 hourly wage:

Live a Reasonable Lifestyle

It’s easy to live a lavish lifestyle when earning more, but the key to survival—whether your salary is high or low—is to live a frugal lifestyle. Following this takes a lot of discipline, but approaching it correctly can lead you to financial freedom.

Stick To Your Set Budget

Sticking to your budget is one way to ensure you’re living within your means. Yes, it’s easier said than done, but budgeting your money realistically can help you achieve your financial goals more easily.

There are several free budget templates you can use now to keep track of your expenses so you don’t get too stressed about where your money goes.

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Image Credit: mne_len/Depositphotos.

Look For Ways To Make More Money

If you feel like $40 is not livable enough, you can always look for other means to make more money. You can start by creating a small business if entrepreneurship interests you, or you can look for a side hustle to earn extra income.

Here are some examples of ways to make extra money:

  • Complete online surveys for cash or gift cards on the following platforms:
    • Swagbucks. This rewards program lets you earn points by browsing the web, shopping online, and taking surveys. Signing up with Swagbucks is completely free. Your points are then converted into free gift cards or cash-backs. Read our full Swagbucks review here or sign up directly using our link for your free $5 signup bonus.
    • Rakuten. Want to get a cashback while you shop at over 3,500 stores? Check out Rakuten to save some shopping money. Read our full Rakuten review here or use our link for your free $10 welcome bonus.
    • InboxDollars. Sign up, do the online tasks, and earn extra cash with InboxDollars. Take the surveys, redeem coupons, play games online, watch videos, and search the web. Making money can’t get any easier than that! Read our full InboxDollars review here or use our link for your free $5 bonus.
    • Survey Junkie. You can earn extra cash through this website by completing online surveys or sharing your data. You will be paid with gift cards or cash through Paypal. Read our full Survey Junkie review and Survey Junkie hacks to get paid up to $60 per survey.
  • Start blogging. Check this guide on how to start a blog and head on to this reliable web host, BlueHost, that provides various feature-packed web hosting options to help you build your website without sweat.
  • Sell your skills as a freelancer. Online job platforms like Fiverr, FlexJobs, and Upwork bring employers and freelance workers together. So, if you have marketable skills like software development, marketing, proofreading, graphic design, etc., you should try creating a smashing resume and listing your profile on these job sites. You can work at home as a virtual assistant part-time or even full-time.
  • Get a data entry job. You can earn cash in the comfort of your home. Basic requirements include typing skills, attention to detail, and computer and Internet connection. Here are some legitimate data entry jobs to try.
  • Be an online tutor. You can teach English on platforms such as Flexjobs and Magic Ears. There are many online teaching opportunities where you can share your knowledge while you earn cash. For more information, check out our list of the best online tutoring jobs to try now. 
  • Sell stuff online. If you have unused or preloved items and want to declutter your home and earn cash, check out these best sites to sell your stuff.

Frequently Asked Questions (FAQs) – $40 an Hour Is How Much a Year?

What Jobs Pay 40 Dollars an Hour?

Several jobs offer $40 an hour in various industries, such as legal, aeronautics, human resources, advertising, and more. These high-paying jobs may or may not require college degrees, depending on the field and job you’re applying for.

Here are some occupations that compensate for this hourly rate:

  • Lawyer
  • Aeronautical Engineer
  • Senior Web Developer
  • Software Developer
  • Veterinarian
  • Human Resources Director
  • Real Estate Analyst
  • Creative Director
  • Advertising Agent
  • Business Development Director

Is $40 an Hour Good?

Yes, $40 an hour is pretty good compared to other hourly rates. According to the US Department of Labor, the federal minimum wage for covered nonexempt employees is $7.25 per hour, so $40 an hour is above average.

Can You Live on $40 an Hour?

Yes, you can live on $40 an hour, even more comfortably than most, whether single or already married with a family.

But as we mentioned, it will still depend on your lifestyle, how much you spend, and how much you save. No matter how high your hourly rate is, if you don’t handle your finances well, your money will go down the drain.

Conclusion – $40 an Hour Is How Much a Year?

We hope this detailed breakdown of how much you make in a year with $40 an hour helped you assess your finances.

Seeing how much you make daily, weekly, biweekly, monthly, and yearly will help you assess how much you can save from your earnings. Not everyone is fortunate enough to make $83,200 a year, so it’s essential to budget your money wisely!

If you want to know more about how much you will make in a year at different pay rates, check out our related posts: