# \$30,000 a Year is How Much an Hour? (Before and After Taxes)

## You got a job offer that you’re excited about, but 30k a year is how much an hour?

Author: Kari Lorz – Certified Financial Education Instructor

Your dream job only pays \$30,000 a year; is it still worth it? You may think that a 30k salary isn’t enough to live on, but it can actually go a long way with careful budgeting.

Let’s break down what \$30,000 a year is how much an hour, a day, a week, and a month so you can make a well-informed decision about a potential job offer.

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## \$30,000 a year is how much an hour (short answer)

• Let’s say you work the traditional 40 hr workweek:
• \$30,000 / 52 weeks a year = \$576.92 a week / 40 hours = \$14.42 an hour
• If you work 50 hrs a week (which would be more typical for a salaried worker)
• \$30,000 / 52 weeks a year = \$576.92 a week / 50 hrs = \$11.54 an hour

### How much is \$30,000 a year for a monthly salary?

\$30,000 / 12 months = \$2,500 gross pay

Note: There are on average 20-23 workdays in a month, so we’ll average and say there are 21.5 working days a month and use it for all calculations in this post.

### How much is \$30,000 a year in bi-weekly pay?

\$30,000 / 26 pay periods = \$1,153.84 gross pay

### How much is \$30,000 a year as a weekly salary?

With 52 pay periods with a job that pays a weekly income, it’s \$576.92 gross.

### \$30,000 is how much a day?

If you have a 40 hour work week, then that’s usually 5 days a week = \$116 a day when you’re working.

### \$30k a year is how much an hour?

Remember, you are salaried! That means you get paid the same even when you work longer. So at five days a week…

• 8 hour workday: \$14.50 an hour
• 10 hour workday: \$11.60 an hour

Now just because you make a \$30,000 annual salary, you don’t take that amount home! You still have to pay taxes. Let’s look at how taxes, insurance & retirement contributions impact your take-home (after-tax) pay.

## If you make \$30,000 a year how much is that after taxes?

Figuring out your tax burden is such a vital part of understanding your pay. If you do the math and base your bills on before-tax income, you’re in for a nasty shock! So always consider how much you’ll pay in taxes.

For example, let’s assume you’re a single filer with one exemption and filing for 2021 tax year:

• If you live in CA, which has a high state income tax rate…
• You’ll pay \$2,295 in FICA taxes (roughly)
• Federal taxes: \$1,895
• State taxes: \$467
• You’ll take home \$25,343 (where 15.52% of your paycheck goes to taxes)
• If you live in FL, which doesn’t have a state income tax, then…
• You’ll pay \$2,295 in FICA
• Federal taxes: \$1,895
• State taxes: \$0
• You’ll take home \$25,810 (where 13.97% of your paycheck goes to taxes)

You can go here to give you a rough idea of how much you’ll pay. Remember, this is just a reasonable rough estimate, not a guarantee!

Or, if you want a super quick calculation, taking 30% off your gross is a good and safe general estimate, this would also include your insurance and retirement contributions. But let’s detail those out below so we can understand the process.

## What about retirement contributions?

I am so glad you asked! Putting money into your employer-sponsored retirement plan is one of the smartest things that you do for long-term financial planning! So yes, you absolutely want to do this!

Companies usually match a specific amount (as a percentage) of the pay that you put in. So if you put in 5% of your gross income into a traditional 401k, they will also match that 5%. Usually, companies have a max amount that they will contribute; 5% is a good general figure.

So, if you make \$30,000 a year and get paid monthly, that means your gross pay is \$2,500 a paycheck; you then contribute 5% of that to a traditional 401k, which is \$125. You then get taxed on the remainder, which is \$2,375.

Essentially, you’re losing \$1,500 from your annual pay, but it’s well worth it as now you have contributed approximately \$3,000 into your tax-advantaged retirement account with the employer match!

If you’re changing jobs, then you need to make sure that you take all your money with you! According to Capitalize, “As of May 2021, we estimate that there are 24.3 million forgotten 401(k)s holding approximately \$1.35 trillion in assets, with another 2.8 million left behind.

That’s a lot of money for employees to just “forget about.” Don’t be a worker who left money on the table when they switched jobs! Beagle can help you find your old 401k accounts and help you roll them over into an account that you can easily manage.

While the full process takes a few days (they need 2-3 days to research everything), the initial sign-up process takes less than 15 minutes. You tell them your info, give them an idea of what companies you worked for, and they go find your old accounts.

We went through the process, and it was super easy; you can read our full review on Beagle retirement savings finder here! Or you can check out Beagle by clicking the green button below.

## How much does insurance take from my \$30,000 annual salary?

Sorry to say that we’re not done with your paycheck deductions. According to the US Bureau of Labor, “Health care is typically one of the most expensive benefits for employers to provide, constituting 8.2 percent of total compensation for civilian workers in March 2020.”

It’s important to note the precedence of what get’s taken out of your paycheck and when. Here’s the order according to the US Office of Human Resources

• Retirement contributions come out first, followed by
• Social Security tax
• Medicare tax
• Federal income tax
• Health insurance
• Life insurance
• State income tax
• Local income tax
• Collections to the US government (if applicable)
• Collections to Court ordered rulings (if applicable)
• *Everything below here is optional*
• Health Care/Limited-Expense Health Care Flexible Spending Accounts
• Dental
• Vision
• Health Savings Account
• Optional Life Insurance Premiums
• Long-Term Care Insurance Programs
• Dependent-Care Flexible Spending Accounts
• Thrift Savings Plan (TSP)

Did your jaw just drop? Mine too; that’s a lot of deductions. Let’s focus on the medical deductions (the 2nd half of the above list) and what that does to your paycheck.

Same scenario as above, a single filer with one deduction, living in California…

• \$30,000 –>
• Minus 5% in retirement contributions of \$1500
• Minus FICA, federal & state taxes: \$4,417
• Totals \$24,083 a year leftover
• Minus 8.2% average medical insurance costs
• That takes out \$1,975, leaving you with \$22,108
• Minus misc small deduction averaging \$50 a month (a total guess)
• Net income \$22,058 annually
• Monthly net income of \$1,838 (26.48% less than your gross pay)

## How to live on \$30k a year annual income

When you get a big income jump, people often warn about lifestyle creep. This can mean that you start spending more money, sometimes without realizing it.

To stick to a monthly budget of \$1,838 a month, you need to be careful about your spending habits and ensure that all your expenses are accounted for. Here’s how to do it…

1. Make a realistic monthly budget; here are the popular budgeting methods
2. Live within your means (you have to say no to yourself sometimes).
3. Save up for big expenses (use sinking funds)
4. Dump your debt ASAP (paying interest is eating away at your bank account, do it this way)
5. Evaluate, Tweak & Adjust, and reanalyzed (everyone needs to adjust, no one is perfect at budgeting)

## How should I budget a 30k salary?

Okay, let’s take the figures from above and figure out your monthly budget. So we’re using a take-home pay of \$1,838 and giving figures for two popular budgeting methods.

### The 50/30/20 budgeting method

This budgeting method is good for people who like flexibility and have leeway for spontaneity. They want general guidelines, but they want options & choices too. So your monthly household budget would look like this…

• 50% Needs: \$919 for housing and utilities
• 30% Wants: \$551 for wants
• 20% Savings: \$368 for saving

### Dave Ramsey recommended budget percentages

I am a fan of Dave’s budget percentages, but I realize that it can be too detailed and constraining for some. But for others, that’s the best part, they want to know what to do with each and every dollar to make the most of their \$30k yearly wage.

But let’s just see what your money situation comes to using his recommended budget percentages.

• Housing 25%: \$460
• Insurance 10 – 25%: \$184 – \$460
• Food 10-15%: \$184 – \$276
• Giving 10%: \$184
• Saving 10%: \$184
• Transportation 10%: \$184
• Utilities 5-10%: \$92 – \$184
• Health 5-10%: \$92 – \$184
• Recreation 5-10%: \$92 – \$184
• Personal Spending 5-10%: \$92 – \$184
• Misc 5-10%: \$92 – \$184

## Can you live off of \$30k a year?

Depending on where you live, these figures may not be a suitable living wage. Such as in a high cost of living area. Your housing and food could cost considerably more than the allotted budget category wants, or the opposite in a low cost of living area.

To add in another layer of difficulty, if you made \$30K in a metro area, that same skill may only pay only \$20K, which can be frustrating if you’re moving.

According to the Bureau of Labor Statistics for May 2020, the average annual wage for a US worker across all occupations is \$56,310. So a \$30K a year job is less than the average. HOWEVER, where you live plays a significant impact in if it’s considered a livable wage.

For example, the Burea of Labor & Statistics states that in NYC, the average yearly salary is \$71,050. While in Idaho, the average salary is \$46,800. But remember, for these BLS averages, there are a few people that totally skew the numbers.

A better number is the median wage, that’s the halfway point of the number of people. The BLS site shares info on the national median hourly wage being \$20.07. Remember, with a 40 hr work week that makes your \$30,000 salary at being \$14.40 an hour, so well under the median wage.

Another factor is your household income (as a whole) not just your income. So The US Census says that in 2019 (the most recent data), the median household income is \$62,843. So if you make \$30,000 and your spouse makes \$30,000 then one of you might need to get a part-time job to help pay the bills, to bridge that \$2,843 gap.

### Is \$30,000 a year salary good if you’re single?

If you’re single, then your \$30K salary is considered below average. You are well above the federal poverty level, but you may have a hard time paying a mortgage on your own. You’ll probably have to rent an apartment with a friend or share a house payment with a few friends to have enough money to cover it.

### Is \$30k a good salary for a family?

A \$30,000 salary may not be enough for a family, depending on the size of the family and where they live. In a low-cost living area, this salary could cover your essential expenses, but not room for much more.

But in a high cost of living area, this salary won’t be enough to cover everything.

Let’s go ahead and take a look at a few other typical salaries, and see how they’d support your family’s needs.

## Jobs that make \$30,000 a year

There are many jobs that make \$30,000 a year; let’s look at Indeed’s list…

• Caregiver – \$30,326
• Prep cook – \$30,978
• Tire technician – \$32,024
• Shuttle driver – \$34,370
• Office administrator – \$35,184
• Nursing assistant – \$35,605
• Housekeeper – \$35,774
• Armed security officer – \$36,387
• Patient access manager – \$38,432
• Utility line locator – \$39,816

## What is a salaried job?

A salaried employee is generally referred to as an “exempt” employee. Being paid a fixed amount every month is known as being salaried. Unless you take unpaid time off, your pay will always be the same, whether you work many hours or not. “I make \$30K per year” is a popular saying among individuals.

### Pros of being salaried

• You can better budget because you know exactly how much you’ll get each paycheck
• You don’t have to punch in/out of a timeclock
• You can work fewer hours and still get paid the same.
• These positions usually come with a better benefits package (i.e., higher retirement contributions, etc.)
• Higher perceived status/position in the company
• Get paid time off (paid vacation, sick leave, etc.)

### Cons of being salaried

• No overtime pay, so if you work more hours, it’s not reflected in the pay
• Higher responsibility and more duties to perform
• Might be expected to take work home with you.

Note: According to the US Dept of Labor, “Effective January 1, 2020, employees must earn at least \$684 per week (\$35,568/year), receive a salary, and perform particular duties (as defined by the FLSA) to be considered exempt from overtime requirements under federal guidelines.”

## \$30,000 a year salary FAQs

### \$30,000 a year is how much a month after taxes?

It’s about \$1,838 after taxes. Again this all depends on your state and your deductions.

### 30k a year is how much an hour?

It depends on how many hours in a day you work…

– 8 hour workday: \$14.50 an hour gross (\$10.63 after taxes)
– 10 hour workday: \$11.60 an hour gross (\$8.50 after taxes)

### How much is \$30,000 a year per week?

\$30k a year is \$576.92 a week gross; and about \$425 a week after taxes.

### Is 30000 a year good?

It all depends on what you’re trying to do with that money.

If you’re trying to support a 4-person family on a \$30k a year salary, it might be tough. Especially if you live in a high-cost-of-living area.

Yet, if you’re single, and live in the suburbs, then \$30k a year is decent. If you like to splurge on things, then consider sharing your housing expense with a roommate to make your income stretch further.

## \$35,000 a year is how much an hour?

• \$2,917 a month
• \$1,346 bi-weekly
• \$673 a week
• \$136 a day
• \$17 an hour (for 8 hr workday)

all figures are gross (before taxes).

## At the end of the day

Getting salaried work may significantly boost your yearly earnings, but be sure you investigate all of the details to ensure that it’s really worthwhile and if you can afford it.

There are a number of deductions from your pay that may not make it so appealing, or the amount of time you put in might be more than your willing to do.

Whatever the case may be, determining your annual salary (i.e., \$30,000 a year is how much per hour) can be a useful way to assess the job’s attractiveness. If it’s your perfect fit, that’s fantastic! You’re going to do great!

### Q: \$30,000 a year is how much an hour

A: \$14.42 an hour