Let’s say you got hired at a new job, you then ask yourself, “$20 an hour is how much a year?” If you’re trying to calculate how much income you’ll make in a year, this post is for you.
Whether this job will be your primary income or not, it is essential to determine your actual income against your day-to-day expenses.
In this article, we’ll discuss how a wage of $20 per hour would convert to your annual, monthly, weekly, or daily income. We’ll also calculate the deductible tax and your take-home pay and provide some tips to survive on a $20 hourly wage.
$20 an Hour Is How Much a Year?
When calculating how much $20 an hour a year is, you must first calculate the number of hours you’ll be working for the year. Here’s how:
- Total work hours weekly: Let’s assume you’d be working 8 hours a day, 5 days a week. If you completed all shifts without tardiness or absences, you worked full-time or 40 hours a week.
- Number of weeks in a year: The average number of weeks in a year is 52.
- Total hours worked annually: Using the above factors, we multiply 40 hours by 52 weeks to calculate your total hours worked in a year. 40 hours x 52 weeks = 2,080 hours.
If you work 40 hours a week and get paid $20 per hour, your yearly income will be $41,600. Of course, tips, overtime pay, and bonuses aren’t included in this amount.
Similarly, if you work part-time (or just 4 hours per day, 5 days a week), your weekly work hours would accumulate to 20 hours per week and 1,040 hours per year. In this scenario, your $20/hour job makes an annual income of $20,800.
Unfortunately, this amount is before taxes and won’t be your actual take-home pay.
How Much Is $20 an Hour Annually After Taxes?
Your take-home pay, or net pay, is the amount you actually take home after taxes and other deductions such as Social Security and Medicare.
Deductions would vary depending on your tax bracket, marital status, and eligibility for certain exemptions. Your state of residence also plays a significant role in the taxes you pay, as the applicable tax percentage varies from one state to the next.
If you’re unsure of your state’s taxation, use this online tax calculator and Federal income tax calculator to get a better idea.
For example, let’s assume you work full-time (8 hours a day, 5 days a week), earning an hourly rate of $20. Your gross income per year is $41,600.
- If you live or work in New York, you’ll be deducted an average of 20.3% total tax, resulting in take-home pay for the year of $33,154 (net pay).
- If you’re following Texas taxation (with no state income tax), you’ll have a net pay of $35,185 after 15.4% deductions.
If you prefer not to include your state when computing annual income, set your taxes and other deductions to 25% of your gross annual income. In this scenario, $41,600 – $10,400 (25%) = $31,200 (net annual income).
How Much Is $20 an Hour per Day?
$20/hour equals $160 for an 8-hour workday or $80 for a part-time 4-hour workday.
Your daily income after taxes in New York is $128 for full-time work or $64 for part-time work. In Texas, a full-timer’s daily income after taxes would be $135; for a part-timer, it would be $67.5.
How Much Is the $20 Hourly Rate per Week?
How much does a $20 per-hour income make in a workweek?
Divide your gross annual pay of $41,600 by 52 weeks (the number of workweeks per year). The answer is $800 per week for full-time employees working 8 hours a day, 5 days a week, at an hourly rate of $20.
As a full-timer, your after-tax weekly income would be $638 in New York after $162 in deductions and $677 in Texas after $123 in taxes.
How Much Is $20 per Hour Biweekly?
Here is how much you make biweekly if you earn $20 an hour. As a full-time employee, your gross biweekly income before taxes is $1,600, which we got by multiplying your gross weekly income ($800) by 2.
The after-tax income would be $1,275 in New York and $1,353 in Texas, with corresponding deductions of $325 and $247.
How Much Is $20 an Hour per Month?
If you make $20 an hour, your monthly income will look like $41,600 (annual gross income) divided by 12 (months of the year), giving you $3,467 gross monthly pay.
In the computation above, your net monthly salary will be $2,763 in New York and $2,932 in Texas, with tax deductions of $704 and $535, respectively.
Similarly, if you were working as a part-timer with only 4 work hours per day, your total income for the month would be $1,734. After $352 in deductions, your monthly take-home pay in New York would be $1,382, or $1,466 in Texas after taxes of $268.
Monthly income would also vary if you took a leave from work, worked overtime multiple times recently, and other similar instances.
Summary – $20 an Hour Is How Much a Year
Here is a summary of the calculations for an income of $20 an hour:
| $20 per Hour (Full-Time) | Total Income (Before Taxes) |
| Yearly Salary (52 weeks) | $41,600 |
| Monthly Salary | $3,467 |
| Bi-weekly Income (80 hours) | $1,600 |
| Weekly Income (40 hours) | $800 |
| Daily Income (8 hours) | $160 |
| Net Estimated Monthly Income (after taxes) | $2,763 to $2,932 |
Tips To Live on $20 an Hour
Stick to a Realistic Budget
Many people start a budget and do not consider expenses and savings. If you decide to follow a budget, make it a realistic plan so the chances of sticking to your budget are high.
Live Within Your Means
You can stick to your budget when you spend less than your income and limit your expenses. In the long run, this habit can help improve your finances.
Look For Ways To Save Cash
Think of ways to shrink your expenses to save cash. This could be anything from canceling one of your streaming services to cutting back on your cafe-bought caffeine fix from 3/day to just one.
Get a Second Job or Side Hustle
For people whose circumstances make a living on $20 an hour impossible. The next best solution is to find other ways to make money.
Traditionally, people find a second job, preferably a part-time one. If your schedule doesn’t permit this set-up, find a side hustle that would complement your lifestyle. Here are some side hustles to try:
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.
Relocate to a Place With Lower Taxes
If you can’t budget your income, consider moving to a region with lower taxes regardless of crunching the numbers and taking on other side hustles.
Frequently Asked Questions – $20 an Hour is How Much a Year?
What Jobs Pay 20 Dollars an Hour?
Many jobs pay $20 an hour. Here are a few occupations that are compensated $20 an hour:
- Legal assistants or paralegals
- Machinists and electricians
- Insurance sales agents
- Data entry specialists
- Customer service representatives
- School counselors
- Carpet installers
- Landscapers
- Truck mechanics
- Massage therapists
Note that differences in location could also affect the minimum wage rates of these jobs. Want more ideas? Here are 30+ jobs that pay $20 an hour.
Is $20 an Hour Good?
If you land a $ 20-an-hour job that you can do full-time, you’ll be making around $42k before taxes. While the wage rate of $20 is just a dollar over the $19 median wage, it is still much higher than the national minimum wage rate of $7.25 per hour.
Can You Live on $20 an Hour?
$20 may not be high enough to live comfortably, but if you live in a lower-taxed region and can stick to a budget, living on $20 an hour is possible. Living off a $ 20-an-hour wage is easier if your job has other benefits such as medical coverage, discounts on essentials like food and medicine, paid time off, and so on.
Conclusion – $20 an Hour is How Much a Year?
Understanding your paycheck and take-home pay is crucial before accepting a job, especially when transitioning careers to enhance your quality of life. An annual salary of $41,600 may seem enticing for salaried employees, but it’s equally important to consider all the hours worked. Similarly, for those paid on an hourly basis at a rate of $20 per hour, calculating the total hours worked is essential.
Whether you are on a fixed annual salary or receiving hourly pay, managing your expenses and optimizing savings is vital for maintaining a debt-free life.
If you want to know more about how much you’ll make in a year at different hourly rates, check out my other posts:
Founder of Spark Nomad, Radical FIRE, Journalist
Expertise: Personal finance and travel content
Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Radical FIRE, a personal finance platform, and Spark Nomad, a travel platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.
