$45,000 a year is how much an hour? 6 Best Tips to Manage Your Finances

Do you know exactly how much you earn in a year, a month, a week, or an hour? Say your new job or recent promotion will earn you a $45,000 a year paycheck, and you want to know your hourly rate for budgeting purposes. Keep reading if you are wondering: $45,000 a year is how much an hour? 

In this article, we’ll give you a few tips on tapping multiple income sources to live more comfortably. 

Get ready to do some calculations! 

$45,000 a Year Is How Much an Hour? 

$45,000 a year is $21.63 or $22 an hour. 

It is easy to calculate how much you make in an hour when you know your annual salary if you have the givens at your fingertips. Like these assumptions: there are 8 hours in a working day, 5 work days in a week, and 52 weeks in one calendar year. 

Let’s just keep the calculations short and simple with the following formula:

  • 40 total working hours in a week * 52 total working weeks in a year = Total working hours in a year
  • 40 * 52 = 2,080 hours

If you are a full-time employee earning a $45,000 yearly salary by working 2,080 hours, you get paid an hourly rate of $21.63 or $22.

  • Yearly salary/total working hours in a year = Total hourly salary 
  • $45,000 / 2,080 = $21.63 or $22 an hour 

Part-time work that takes about 4 hours a day or half the daily work hours gets that $45,000 annual gross pay will be halved to $22,500. Your total hourly wage can be calculated by dividing this part-time income by the number of hours in a year (2,080). This will give us your total hourly pay of $10.82 or $11 as a part-time worker. 

  • Yearly salary/total working hours in a year = Total hourly salary (part-time) 
  • $28,000 / 2,080 = $10.82 or $11 an hour 

$45,000 a Year Is How Much After Taxes?

$52,000 a year will allow you to make $36,126 to $37,917 after taxes. 

If you are working full-time or living in California, the state with the highest tax rate, a yearly gross income of $45,000 will become $36,126 after deducting $8,874 in taxes, including federal and state taxes and other government deductible items. The total tax of someone from Texas will amount to $7,083, and the net annual pay is $37,917. 

Now, suppose you engage in part-time work that only takes 4 instead 8 hours daily. Your $22,500 gross yearly pay in California be deducted with a tax of $3,228, leaving you a net annual income of $19,272. On the other hand, the government would have deducted a $2,694 tax from your $19,806 annual take-home pay had you worked in Texas as a part-timer.

Note that the figures stated here can increase if you work long hours or do overtime or decrease if you file your leaves and take personal time off.

Hopefully, this explanation gave you a clearer understanding of your yearly income post-taxes. 

$45,000 a Year Is How Much per Month?

Every month, a $45,000 yearly salary will allow you to make around $3,750 before taxes. 

To calculate the value, divide your yearly income by the total number of months in a year. The calculation is shown below:

  • $45,000/12 = $3,750

As a full-time worker, your net monthly income will be $3,010 if you are in California, where your tax deduction is $740, while in Texas, you will take home around $3,160 per month after $590 in tax has been deducted. 

Man calculating his tax MSN calculator glasses papers
Image Credit: DepositPhotos/AndreyPopov.

If you work part-time, your gross monthly income will be $1,875. You will get $1,606 as your net pay for the week if you are from California and $1,651 if you are from Texas after tax deductions of $269 and $225, respectively. 

$45,000 a Year Is How Much per Week?

If you earn $45,000 a year, your gross weekly salary will be $865.38 or $865 before taxes. 

You can calculate the value by dividing the yearly salary by the total working weeks in a year. The number of working weeks is 52. The calculation of your weekly income is shown below.

  • $45,000/52 = $865.38 or $865 

If you’re a full-timer, working or living in California will cost you $171 in weekly taxes, leaving you with a net income of $694 for the week. A Texas resident’s taxes will amount to $136 with a $729 weekly income as take-home pay. 

As for those engaged in part-time work, you will get a $432.50 or $432 gross weekly income. After $61.93 in taxes, you will be left with a weekly net pay of $370 if you are in California or a $51.68 deduction in Texas, allowing you to bring home $380 for the week. 

$45,000 a Year Is How Much Biweekly?

To calculate your paycheck biweekly, multiply your gross weekly compensation by 2 weeks ($865 * 2 weeks). 

With an annual gross pay of $45,000, your total biweekly income is $1,730. 

Full-time work provides a net income of $1,389 every 2 weeks in California after biweekly taxes of $341. If you’re in Texas, your net biweekly pay is $1,458, and your tax deduction is $272. 

If you are a part-timer, your gross weekly pay is halved at $865. A net biweekly income of $694 and tax deduction of $171 are in store for those from California. On the other hand, Texas residents have to pay $136 in taxes, with a $729 net biweekly pay. 

$45,000 a Year Is How Much per Day?

At the start of this article, we calculated that a $45,000 annual salary translates to $21.63 or $22 an hour. 

If you work full-time, chalking in 8 hours a day, 5 days a week for 52 weeks, and earn $45,000 a year, you will receive a gross daily wage of $176. This amount is calculated after dividing the total yearly income by the number of hours worked in a year, as noted at the start of this article. 

  • $45,000 / 2,080 hours per year = $21.63 or $22 an hour
  • $22 an hour * 8 hours per work day = $176

If you are a full-timer, you will get a daily paycheck of $141 in California after $34.93 in taxes. In Texas, $27.82 in taxes will let you bring home $148 for the month. 

If you are a part-timer with 4 hours daily (instead of 8) at a pay rate of $22 an hour, you will earn a total of $88 for the day. In California, you will get a net daily pay of $75.27 after $12.73 in taxes, while in Texas, that would be $77.37 in take-home pay daily after a tax deduction of $$10.63.

These amounts calculated above may vary, more or less, depending on the actual hours that you worked, whether you took time off or rendered for overtime. 

Tips to Live on $45,000 a Year

Around 52% of American citizens earn a $45,000 a year salary. It is not enough to cover all your expenses, so make sure that you follow our 6 best tips to make the most out of your income.

1. Budgeting

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

Budgeting makes life easy. We recommend you make a list of your expenses and allot a certain percentage of your income to each expense. Make sure you do not spend all your cash and put some of it aside as savings. 

2. Saving

Saving is the next important step to success. Aim to save around 10 to 15 percent of your income at the end of the month and put it in an emergency fund. 

That gives you the luxury of not going into debt when your car breaks down, or your laptop crashes. 

3. Cutting Expenses 

$45,000 yearly is not enough to cover all your expenses if you are the only one earning in the family. Make sure you spend money on essentials like housing, transportation, and food. 

Reducing these costs as much as possible gives you room to spend more money on what you enjoy.

4. Negotiate Your Bills

You can lessen your expenses by negotiating your bills. Platforms like Trim can find places that will help you save on your utilities, smartphone, and internet bills.

To start, you have to sign-up with Trim and then link your accounts and credit card accounts. Trim will skim through your accounts to search for places where you can save more.

 Check out our full Trim review for more details on the platform.

FREE - Start Saving Money 

5. Investing

Most people aren’t aware that investing does not require you to be a millionaire. We highly recommend you invest in stocks to boost your overall income. Make sure that you study well before investing in stocks.

If you’re looking for low-cost and easy-to-maintain investments, see if any of these funds fit your preferences:

  • FNILX Vs. FZROX – which are two different Fidelity funds that charge zero fees.
  • FXAIX Vs. SPY – where we compare two S&P 500 funds that contain the 500 biggest companies in the US.
  • FZROX Vs. FSKAX – where we compare two funds that cover the entire stock market.

6. Online Money-Making and Side Hustles

There are many ways to earn extra cash apart from your conventional job. We have listed some best online money-making techniques and side hustles for you to increase your overall salary.

  • Complete surveys on these apps:
    • 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.
    • Rakuten. Want to get a cashback while you shop at over 3,500 stores? Check out this rewards site to save some shopping money. Read our full Rakuten review here.
    • InboxDollars. Sign up, start doing the online tasks, and earn extra cash with Inbox Dollars. Read our full InboxDollars review here.
    • 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.
  • Freelance gigs on online marketplace such as FlexJobs, Upwork, and Fiverr.
  • Start blogging. Here is a guide on how to start a blog. And educate yourself on the techie stuff, too. Check this reliable web host, BlueHost, which provides features-packed web hosting options.
  • Play online games. If you play games, this is the perfect side hustle. With platforms like Mistplay, InboxDollars, or Gamehag, you can play to your heart’s content as you earn exchangeable points for cash or gift cards.
  • Become an online tutor. Online tutoring allows you to choose your preferred time, subjects, and students. Magic Ears is mainly catering to Chinese pupils. FlexJobs has many clients looking for tutors. Check the list of the best online tutoring jobs to try now

What Jobs Pay $45,000 a Year?

Many occupations in the US pay $45,000 a year. 

Business woman talking on the phone and using laptop
Image credit: Syda_Productions/Depositphotos.

Here is the list of jobs that can pay you a $45,000 salary:

  • IT Developer
  • Customer Support Specialist
  • Consultant
  • Sales Support Representative
  • Housing Coordinator
  • Field Service Technician 

Is $45,000 a Year a Good Salary?

The answer to this question depends on the state you live in. $45,000 salary in Houston may not be enough to cover all your expenses, but the same salary will work well in New Orleans. The cost of living varies from state to state. 

$42,000 to $126,000 salary is the middle-class salary range in the US. Your salary lies in the lower-middle-class category. 

Can You Live on $45,000 a Year?

Yes, you can live on a $45,000 salary, but your lifestyle will not be able to afford any luxuries. You will have to cut expenses and follow your budget strictly to make it work. $45,000 can cover all the expenses of an individual. 

If you live with a family with children, your limited yearly salary will make life difficult. To make the most of your income, please follow the tips provided in this article.

Frequently Asked Questions – $45,000 a Year Is How Much an Hour?

How Much Will I Take Home if I Earn $45,000?

If you earn $45,000 a year, you will take home $33,750, assuming that your government charges a 25% tax on your income. The tax rates vary, so your yearly income has a high probability of increasing and decreasing depending on the state where you live.

What’s the Tax on $45,000 a Year?

If you’re a single filer who earns $45,000 a year, here is the tax on your income in different states of the US:

  • New York: $9,408
  • New Mexico: $8,764
  • New Hampshire: $7,138
  • Nevada: $7,138
  • Nebraska: $9,222
  • Montana: $9,416
  • Massachusetts: $9,458

If your state is not mentioned above, You can calculate the tax using the free income tax calculator.

Is $45,000 a Year Considered Middle Class?

Yes, a $45,000 salary is considered middle class. According to the Pew Research Center, half of America’s population lives in the middle-class range, with yearly salaries between $42,000 to $126,000.

Conclusion – $45,000 a Year Is How Much an Hour?

A yearly income of $45,000 means you make $23.43 an hour. This amount may change depending on various factors, such as deductible income tax, vacation or sick leaves, overtime pay, etc. Where you live or work can also affect your net income, as US states have different taxation schemes and costs of living.

While $45,000 may be considered middle-class, it is still below US workers’ $58,260 mean annual wage, as documented by the Bureau of Labor Statistics (BLS). You can improve your financial situation by getting a new full-time or part-time job or a side gig that could give you more income. 

Knowing your salary figures at every pay period would help you chart your financial course through planning, budgeting, saving, and making more money. You might find these related reads helpful: