Have you recently gotten a promotion and pay raise? Or are you thinking about whether your current job is worth the paycheck you are getting? As a salaried employee, maybe you are wondering: $55,000 a year is how much an hour?
You may be anxious about whether you can make a living off $55,000 a year. Your wages are an important factor in your finances, and if this amount cannot cover all your expenses, you may need to look for a better-paying job or a side hustle.
This article will help you compute your hourly rate and how to live with that annual income. We will also offer tips on tapping multiple income sources.
Let’s get started!
$55,000 a Year Is How Much an Hour?
$55,000 yearly salary will allow you to make $26 an hour. The value is obtained by dividing your yearly salary by the total number of hours worked in a year.
To convert your yearly salary into its hourly income equivalent, we have to first determine the number of hours you worked in a year. Some values are given: 52 weeks a year, 5 working days a week, and 8 hours of regular work per day. A standard week at work totals 40 hours (8 hours/day * 5 days/wk).
Let’s make it simple with this formula for calculating the total annual working hours:
- 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
As a full-time employee, you earn a $55,000 yearly salary by working for 2,080 hours; with that, you get paid an hourly rate of $26.44 or $26.
- Yearly salary/total working hours in a year = Total hourly salary
- $55,000 / 2,080 = $26.44 or $26 an hour
If working part-time, for example, half the daily work hours, your yearly pay will also be halved to $27,500. To get your gross hourly salary, divide this income by the number of hours a year (1,040). Your total hourly pay is $26.44 or $26 as a part-time worker.
- Yearly salary/total working hours in a year = Total hourly salary (part-time)
- $26,000 / 1,040 = $26.44 or $26 an hour
$55,000 a Year Is How Much After Taxes?
When you earn $55,000 a year, you’ll earn between $43,324-$45,925 after taxes, depending on your situation.
Your specific circumstances determine the exact amount of deductible tax from your income. Aside from where you work or reside, your net annual income after taxes may be affected by exemptions based on your civil status, tax bracket, and other considerations. Federal taxes and other government deductions, such as Medicare and Social Security, are also considered.
Suppose you are a full-time employee earning $55,000 annually, living or working in California, the state with the highest tax rates. Your tax deduction is $11,676, and your net annual pay is $43,324.
On the other hand, if you are from Texas with no state taxes, your annual take-home pay after taxes of $9,076 will be $45,925.
For instance, part-time work takes 4 instead of 8 hours a day. If you’re from California, your $27,500 gross annual pay will be deducted with a tax of $4,378, leaving you with a net yearly income pay of $23,123.
Meanwhile, your deductible tax in Texas is only $3,644; your annual take-home pay as a part-timer is $23,856.
It is important to note that computed amounts can be more if you are a fan of overtime work, or it could be less if you are often taking time off.
Knowing your income flow at any period will give you a better grasp of your finances. With the computation used above, you will also have a clearer idea of the total amount of money you have every year, post-taxes.
$55,000 a Year Is How Much per Month?
A $55,000 gross annual income translates to $4,583 monthly. Your income for the month is calculated by dividing your yearly pay by the total number of months in a year (12).
- $55,000/12 = $4,583.33 or $4,583
If you work in California, you will pay $973 in monthly taxes, leaving you with a net income of $3,610. A Texas resident’s taxes will amount to $756 with a $3,827 income as monthly take-home pay. These are for those engaged in full-time work.
If you are a part-timer, your $2,292 income will get you a monthly net pay of $1,927 in California after $365 in taxes. In Texas, $304 in taxes will allow you to bring home $1,988 for the month.
$55,000 a Year Is How Much per Week?
If you earn $55,000 a year, your weekly salary will be $1,058.
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:
- $55,000/52 = $1,057.69 or $1,058
Those working full-time will receive a net weekly pay of $833 if you are in California, where your tax deduction is $225. Employees from Texas will bag $883 in income every week after $175 in tax has been deducted.
If you work 4 hours a day part-time, your gross weekly income will be $529. You will receive $445 for the week In California and $459 in Texas after tax deductions of $84 and $70, respectively.
$55,000 a Year Is How Much Biweekly?
To calculate your paycheck biweekly, multiply your gross weekly compensation by 2 weeks ($1,058 * 2 weeks).
With an annual gross pay of $55,000, your total biweekly income is $2,116.
Full-time work gives you a net income of $1,667 every 2 weeks in California after biweekly taxes of $449. If you’re in Texas, your net biweekly pay is $1,767, and your tax deduction is $349.
Similarly, if you are a part-timer, your gross income for 2 weeks would be $1,058, while your net biweekly pay will be $890 in California and $918 in Texas. These amounts are after deducting your corresponding taxes of $168 and $140.
$55,000 a Year Is How Much per Day?
As computed at the beginning of this article, your $55,000 annual salary translates to a $26 daily gross pay.
If you work full-time following an 8-hour work schedule ($26 * 8 hours/day), your total wage for the day would be $208. In California, your after-tax daily income would be $164; in Texas, $174, after deductions of $44 and $34, respectively.
If you work as a part-timer, 4 hours daily (instead of 8), at a pay rate of $26 an hour, you will make a total of $104 for the day. You will get a net daily pay of $88 after $16 in taxes in California, while in Texas, that would be $90 in take-home pay daily post-deduction of $14.
Tips for Living on $55,000 a Year
Saving helps you in hard times. Save at least 10% to 15% of your overall monthly income to ensure a backup. You can use your savings for investment purposes, but make sure that you consider the risk involved before investing your hard-earned money.
Investing is your best option if you want to increase your overall wealth.
Study stocks, cryptos, and NFTs to get a good knowledge of their upward and downward trends. Invest in them only when you can predict the trends efficiently.
Some of the investment options that you may try are:
- Peer-to-peer lending – try Mintos and Crowdestor for your P2P lending investments. Check out our full Mintos review and our Crowdestor review for more details on the platform.
- Crowdfunding real estate – open an account for EstateGuru if you want to invest in real estate. Here is our full EstateGuru review for more information.
- DEGIRO – the same as M1 Finance but based in Europe. Check out our DEGIRO review and start investing.
Make a budget by creating a list of expenses. List the important ones on the top and the least important ones at the bottom. Start allotting a certain percentage of your income to each expense, and make sure that you give an adequate amount to every expense listed without overspending.
4. Online Money-Making and Side Hustle
Here is the list of online money-making techniques and side hustles.
- Complete surveys for cash online 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.
- Survey Junkie. You can earn extra cash through Survey Junkie 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.
- 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.
- InboxDollars. Sign up, start doing the online tasks, and earn extra cash with InboxDollars. Take the surveys, redeem coupons, play games online, watch videos, search the web, and more. Making money can’t get any easier than that! Read our full InboxDollars review here.
- 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 an impressive resume and listing your profile at these job sites.
- Be an online transcriptionist. If you are good at 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.
- Flip items for profit. If you are good at finding saleable goods and reselling them at a profit, there are many online sites like Craigslist, Letgo, eBay, and Amazon where you can earn cash by buying and selling. You can buy secondhand items or sell your own preloved or unused goods in online flea markets.
- 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 a sweat.
- Start a YouTube channel. Find your niche, create your content, and build your subscriber list, and you can earn a lucrative income from YouTube through sponsorships, vlogging, banner ads, vlogging, your own web series, and more.
- Become an online tutor. Online tutoring allows you to choose your preferred time, subjects, and students. If you are into group teaching, there’s Magic Ears, mainly catering to Chinese pupils who want to learn English. Aside from general job listings, the popular job platform FlexJobs also has many clients looking for tutors.
For more information, check out our list of the best online tutoring jobs to try now.
5. Cutting Expenses
Cutting expenses is an easy way to escape a financial crisis.
Unsubscribe to any unnecessary subscription, such as Netflix or Amazon Prime, to save your hard-earned money.
6. 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.
7. Avoiding Debts
Paying off your debts can decrease your overall income, and it may be too late by the time you realize it. We highly recommend saving money instead of taking heavy loans from banks and paying extra money as interest.
What Jobs Pay $55,000 a Year?
Here is the list of jobs that pay $55,000 a year or even more. Some pay less than $55,000 when you start the job, but you can make your way to a package even higher than $55,000 with more experience and time.
REIT (Real Estate Investment Trust) Acquisition Analyst
- Responsible for looking for promising investment opportunities for the REIT company.
- The salary ranges from $52,000 to $69,000 annually
Real Estate Association Managers
- Responsible for assisting property owners manage their assets.
- The average yearly salary is $58,670
- Responsible for transforming faces and bodies to resemble a character.
- The overall job growth rate is around 12%.
- The average yearly income is around $59,300.
Pile Driver Operators
- Responsible for managing large machines that lay building blocks for large buildings and structures.
- The growth rate is predicted to increase by 15% in the next 4 years.
- The average yearly salary is $57,650
- Responsible for reviewing construction plans and sites.
- The average yearly salary is $59,090
Power line Installers
- Responsible for repairing electrical power systems.
- The average yearly salary is $69,380.
Is $55,000 a Year a Good Salary?
Yes, $55,000 a year is an excellent salary if you follow a proper budget.
Spend most of your income on housing and utilities. Make a list of the rest and check if you can save some for your entertainment. Your salary is good enough to live a luxurious lifestyle.
Can You Live on $55,000 a Year?
Yes, you can have a really good lifestyle if you are living without family and children. However, your yearly salary will cover all the expenses quite well, even if you are the family’s breadwinner.
Your lifestyle is also dependent upon the state you live in. Some states have higher housing costs than others, so don’t forget to check the tax and housing rates before making a budget.
Frequently Asked Questions – $55,000 a Year Is How Much an Hour?
How Much Will I Take Home if I Earn $55,000?
It depends on several factors, such as your location, deductions, and exemptions. If you live in one of the no-tax US states like Texas, you can take home $45,925 annually after $9,076 in taxes.
But if, on the other extreme, you live or work in a state with the highest tax rate like California, you will only have a net annual income of $43,324 after $11,676 in tax has been deducted.
What Is the Tax on $55,000 a Year?
Here is the list of tax rates in different US states.
- New York: $11,959
- New Mexico: $11,182
- New Hampshire: $9,076
- Nevada: $9,076
- Nebraska: $11,769
- Montana: $11,954
- Massachusetts: $11,915
- Alabama: $11,367
Is $55,000 a Year Considered Middle Class?
Yes, $55,000 a year is considered middle-class. According to Pew Research Center, the following are the salaries that fall under the middle-class category.
- Single person: $30,003
- Married without kids: $42,431
- Married with a single child: $51,967
- Married with two children: $60,007
Conclusion – $55,000 a Year Is How Much an Hour?
Knowing and understanding the details of your earning capacity and limitations would help you set your financial goals and make a comfortable living. Key areas for your financial empowerment are about managing your finances through budgeting, saving, and finding ways to earn more.
May this article nudge you into thinking in a broader and more long-term perspective regarding your finances and work life!
If you liked reading about your estimated paycheck and tax deduction, check out our other annual income posts:
- $50,000 Per Year Is How Much an Hour?
- $40,000 a Year is How Much an Hour?
- $35,000 Per Year Is How Much an Hour?
Marjolein is a financial consultant who has built over €4,000 monthly passive income and saves over 70% of her income. Read Radicals’ inspiring story, from stuck in the 9-to-5 to loving life. Feel free to send Radical a message at the bottom of this page