$80,000 a Year is How Much an Hour? + Saving & Budgeting Guidelines

If you’re wondering, “How much is $80,000 per year an hour?” We’ve got you covered with all the details

Author: Kari Lorz, Certified Financial Education Instructor

Author: Kari Lorz – Certified Financial Education Instructor

You deserve to know how much money you need to make each year to live a comfortable life. No more wondering, $80k a year is how much an hour? And trying to figure out all your deductions.

We’re here to break down the numbers for you and help you understand what $80,000 looks like for take-home pay. With our help, you’ll be able to budget your expenses and finally achieve financial stability. 

80000 a year is how much an hour

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$80,000 a year is how much an hour (short answer)

  • Let’s say you work the traditional 40 hr workweek:
    • $80,000 / 52 weeks a year = $1,538 a week / 40 hours = $38.46 an hour 
  • If you work 50 hrs a week (which would be more typical for a salaried worker):
    • $80,000 / 52 weeks a year = $1,538 a week / 50 hrs = $30.77 an hour

How much is $80k a year in monthly pay?

  • $80,000 / 12 months = $6,667 gross pay.

How much is 80,000 dollars a year in bi-weekly pay?

  • $80,000 / 26 pay periods = $3,077 gross pay.

$80k is how much a week?

  • $80,000 / 52 weeks = $1,538 gross pay.

$80,000 is how much a day?

If you work 40 hours a week, 8 hours a day = $308 a day when working.

$80k a year is how much an hour?

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

  • 8-hour workday: $38.46 hourly pay
  • 10-hour workday: $30.77 hourly pay (this is your pay per hour worked in time, but your paycheck remains the same because you’re salaried).

You don’t just walk away with $80,000 if that’s your compensation. You must still pay taxes. Let’s examine how your take-home (after-tax) pay is affected by this.

Some places give a different answer – what gives?

Yes, hourly wages have been calculated based on the number of average working hours in a year on some sites, which is okay IF each year is the same. Yes, it’s 365 days (unless it’s a leap year). But how many of those days are working days (vs. weekend days) fluctuates based on what year it is.

There are 250 – 262 working days in a year, so hourly that means there are… (250 days x 8 hours) to (262 days x 8 hours) = 2,000 hours to 2,096 working hours in a year.

If you are paid monthly (more probable at this wage) or bi-weekly, your precise hourly rate will vary. There is no specific figure; rather, we establish the tightest possible range and provide that as a reasonable estimate.

If you make an $80k salary, how much is that after federal and state taxes?

You need to calculate your tax burden to properly understand your take-home income. If you do the math and use pre-tax income to determine how much you have to spend on monthly bills, you’ll be in trouble! You should always keep an eye on how much you’ll pay in taxes.

For example, let’s assume you’re a single filer:

  • If you live in California, which has a very high state income tax rate…
  • You’ll pay $20,691 annually in FICA, federal and state taxes (roughly)
  • You’ll take home $59,309 (before insurance and misc deductions)
80K anual salary annual tax burden

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!

You lost almost 26% of your pay to state & federal taxes.

The current tax rate for $80k a year

If you make $80k a year and are single with no children, your current tax rate is 22% for federal taxes…

  • $40,526 to $86,375 income = 22% tax rate
  • $86,376 to $164,925 income = 24% tax rate

So you’ll fall into the 22% bracket, but if you get any bonuses or a pay raise, you’ll shift into the next higher tax bracket.

What do retirement contributions do to my take-home pay?

I’m so glad you asked this! One of the most crucial long-term financial planning decisions is contributing to your employer’s workplace retirement plan.

Companies usually match a specific amount (as a percentage) of the pay that you put in. So if you put 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 realistic figure to use.

So, if you make $80,000 a year and contribute 5%, that means $4,000 annually in workplace retirement plan contributions and another $4,000 with your employer match!

You now have a taxable income of $76,000. Using the same calculator shown above, you’ll take home $56,561 (before insurance deductions).

  • $59,309 take home with no retirement contributions
  • $56,561 with a 5% contribution
  • = a difference of $2,748 in take-home pay (before medical and other misc deductions).

The graph below shows what a 5% retirement contribution looks like ($333 a month) plus a 5% company match over the span of 30 years. Don’t forget that you’ll probably get raises along the way too, which will bump up your future total balance.

At the end of 30 years, at a 7% return (this is a good average), you’ll have…

  • Contributed $119,980 (total principal)
  • Earned $289,515 in interest
  • Total of $409,495

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 $80,000 annual salary?

I hate to say this, but we haven’t completed the list of payroll deductions from your paycheck. According to the U.S. 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 U.S. 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 U.S. 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 drop when you saw the list? Because that’s a big chunk of money. Let’s concentrate on medical deductions and how they impact your income.

The situation is the same as in the above example, with a single filer making one deduction and living in California…

  • $80,000 / 12 months = $6,667
  • Minus 5% in retirement contributions $333 monthly
  • Minus FICA, federal and state taxes = $1,620 a month
  • Totals $4,714
  • Minus 8.2% average medical insurance costs (off gross pay)
  • That takes out $547 leaving you with $4,167
  • Minus misc small deduction averaging $100 (a total guess)
  • = $4,067 net monthly income

This means roughly 39% of your paycheck is money you never see in your bank account.

$60,000 a…Before TaxesAfter all Deductions
using standard 39% total deduction for taxes, insurance & retirement contributions

How to live on $80k a year

When you get a large raise, many people warn of lifestyle creep. This implies that you begin to spend more money without even knowing it. A little upgrade here, a new XYZ there, Sunday dinner out every week

To stick to a monthly take-home budget of $4,067, 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. Save up for significant purchases such as a new car (use sinking funds)
  3. Dump your debt ASAP (paying interest is eating away at your bank account, do it this way)
  4. Evaluate, tweak & adjust (everyone needs to adjust, no one is perfect at budgeting)
  5. Live within your means (you have to say no to yourself). Let’s dive into this aspect more with The Joneses.

Is $80,000 an income considered middle class?


According to Fortune, “The Pew Research Center has put a financial definition to the term “middle income.” To be considered part of that group in 2021—which is synonymous with middle-class, according to Pew—a single American must have earned $30,003 to $90,010, according to a new set of reports released Wednesday. 

But that range does vary by the size of the household. A three-person household must have earned $51,962 to $155,902 to be considered middle-class while a family of four must earn about $60,000 to $180,000.”

Pew Research Center has a fun calculator where you can input your city/state, household number, and income to find out your area’s income spectrum. This will give you a good idea of how your income matches your location, and you can further filter with nationwide demographics.

While you probably already know where you’re at, it’s still interesting to compare yourself to statistics & national averages. However, don’t get too caught up in being below/average/above average. There are so many things that influence this.

How should I budget an 80k salary?

Okay, let’s take the figures from above and figure out your monthly budget. So we’re using a take-home pay of $4,067  and giving figures for two popular budgeting methods.

The 50/30/20 budgeting method

This budgeting method is best 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: $2,033 for housing and utilities
  • 30% Wants: $1,220 for wants
  • 20% Savings: $813 for saving

Dave Ramsey recommended budget percentages

I am a fan of Dave’s budget percentages, but I realize that this method can be too detailed and constraining for some. However, others like to be told exact amounts to help them feel secure.

For budgeting, norms are a good place to begin but keep in mind that individuals modify and update their figures depending on what works best for their home and their current season in life.

Let’s see what everything comes to…

  • Housing 25%
  • Insurance 10 – 25%
  • Food 10-15%
  • Giving 10%
  • Saving 10%
  • Transportation 10%
  • Utilities 5-10%
  • Health 5-10%
  • Recreation 5-10%
  • Personal Spending 5-10%
  • Misc 5-10%
Budget CategoryPercentageAmount
Insurance10 – 25%$407 – $1,017
Food10 – 15%$407 – $610
Utilities5 – 10%$203 -$407
Health5 – 10%$203 -$407
Recreation5 – 10%$203 -$407
Personal5 – 10%$203 -$407
Misc5 – 10%$203 -$407
Dave Ramsey recommended budget percentages for $80,000 salary

Jean Chatzy’s budgeting recommendations

If the 50/30/20 feels too broad, and Ramsey’s budgeting percentages seem way too tight & controlled, then you’ll be happy to know that finance expert Jean Chatzy covered the middle ground with her recommendations (my personal budget uses her percentages). Here’s how it looks…

  • 35% Housing — rent or mortgage, plus the cost of insurance, taxes, utilities, and maintenance.
  • 15% Transportation — your car payment falls here (if you have one), but taxis, parking, and insurance also go here.
  • 15% Other Debt Repayment — credit card payments, student loan payments, and any other debts you owe.
  • 10% Long-term saving — putting money away as an emergency cushion, as well as the retirement account you should be contributing to (whether it’s at work or on your own).
  • 25% Everything else — this is your life. Food, entertainment, clothes, cosmetics, travel, and anything that doesn’t fit into the other categories.

These recommendations feel doable to me; they feel like you’re being responsible but not too straight-laced. That’s why I follow them for my own budget category percentages.

If you discover that you have no debt (congratulations!), consider moving 5% of your income to living costs or long-term savings. Then use the rest of your money to prepare for significant expenditures like a holiday, a new car, a new house, and so on.

CategoryBudget PercentageAmount
Debt Payments15%$610

Can you live off of $80k a year?

This salary isn’t always a decent living wage if you live in a high cost of living area. Your housing and food expenses may be considerably higher than the budget category allowance allows, or vice versa in a low-cost of living region.

Additionally, if you make $80K in a metro area, the same skill set may only pay $70K in a more rural location, which is frustrating.

According to the Bureau of Labor Statistics for May 2020, the average annual wage for a U.S. worker across all occupations is $56,310. So an $80K a year job is well above average. HOWEVER, where you live significantly impacts if it’s considered a good wage.

For example, the BLS states that in NYC, the average yearly salary is $71,050. While in Idaho, the average salary is $46,800. But remember, a few people skew the numbers for these BLS averages.

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, your $80k salary is $38.46 an hour, so well above the median, almost double.

Another factor is your annual household income (as a whole), not just your income. So The U.S. Census says that in 2019 (the most recent data), the median household income is $62,843. So if you make $80,000 and your spouse makes $80,000, you are doing great at $160,000 total!

Is $80k a good salary for a family?

An $80,000 salary may be enough for a family, depending on the size of the family and where they live. This salary could certainly cover your expenses in a low-cost living area.

But in a high cost of living area, this salary might be just enough to cover the basics. Again, it all depends on your lifestyle. How careful you are with your money and how well you plan for the future.

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

Is $80,000 a year salary good if you’re single?

Your $80K salary is considered above average if you’re single. You’re doing great. But remember, how much you make is only half of the equation; the other half is how much you keep (aka save – more on this later).

Let’s talk about the “cost of living”

An area’s cost of living means how expensive or inexpensive it is to live there. This encompasses the housing market, cost of goods & services, etc. People usually call these high cost of living areas (HCOL) or low cost of living areas (LCOL).

This matters because even if you are paid a lot in an HCOL area, a lot of money is flowing out of your wallet too, as things cost more.

According to Indeed’s Hiring Lab, For most jobs, salaries are higher in smaller metros after accounting for the cost of living.”

“Before adjusting for cost of living, America’s highest salaries are in San Jose, San Francisco, and several other California metros. But these high-salary places like the Bay Area tend to have the country’s highest costs of living — especially for housing, but for other goods and services too. In these high-salary places, it’s money in, money out.”

“When we adjust for cost of living, the highest-salary metros look totally different. Among the 185 US metropolitan areas with at least 250,000 people, adjusted salaries are the highest in…

  • Brownsville-Harlingen, TX
  • Fort Smith, AR-OK
  • Huntington-Ashland, WV-KY-OH

How much of my $80,000 salary should I be saving?

This is a loaded question, as everyone knows you should save. But we don’t actually do it, or we don’t save as much as we should.

Again, knowing norms is helpful; this is a good place to start your planning.

According to The Balance, “The short answer is that you should save a minimum of 20 percent of your income. At least 10 percent to 15 percent of that should go toward your retirement accounts. The other 5 to 10 percent of that should go toward a combination of building an emergency fund, creating other long-term savings.”

However, your financial goals may dictate that you do something else. Think of both short and long-term goals. (I.e., saving for an exterior garage build and saving for a new home. One will take considerably longer to achieve).

However, you should always start your savings with your workplace retirement plan, especially if they have a match (and no, you shouldn’t count their match amount as part of your 20% savings goal).

Once you’ve started your 401k plan, then save to fully fund your emergency fund (6-9 months of living expenses).

Then once you have that taken care of, shift your focus to saving for your life goals (i.e., vacation, new bobby XYZ, etc.).

Note: if you carry consumer debt, you need to shift your saving focus. Start with contributing just enough to get the company match, then build a $1,000 starter emergency fund. Then pay off your consumer debt, and then fully fund your emergency savings. Finally, go with your life goal savings by using sinking funds.

How much should I save? – according to your age

Again, this is just a good suggestion, based on one factor, your age. These recommended numbers do not account for your personal situation. So take these with a grain of salt, and use them as a place to start your savings plan, but know that you’ll adjust the numbers.

According to the Federal Reserve’s Board Survey of Consumer Finances (2019), here are the actual average savings by age group…

  • under 35 yrs – $11,200
  • 35-44 yrs old – $27,900
  • 45-54 yrs old – $48,200
  • 55-64 yrs old – $57,800
  • 65-74 yrs old – $60,400
  • over 75 yrs – $55,600

While Ally recommends that you should save…

  • 30’s – 1x your income
  • 40’s – 3x your income
  • 50’s – 5x your income
  • 60’s – 7x your income
  • 70’s – 9x your income
  • 80’s – 11x your income

In addition to these numbers, you should consider your personal situation, which may include…

  • Your retirement age
  • Your living situation (mortgage paid off?)
  • The kind of lifestyle you want (your monthly expenses, travel plans, etc.)
  • Your healthcare needs
  • Your investment withdrawal strategy

Jobs that make $80,000 a year

Many jobs make $70,000 a year; let’s look at Indeed’s list…

  • Occupational therapist – $81,479
  • Real estate agent – $82,223
  • Biomedical engineer – $83,186
  • Physical therapist – $83,919
  • Construction manager – $85,752
  • Management analyst – $88,269
  • IT manager – $89,635

What is a salaried job?

“Exempt” employees are those who are paid a salary. Being salaried implies that you will be paid a fixed amount every month, generally once a month. Unless you take unpaid time off, the payment is the same whether you work a few hours or many hours each week. “I make $80,000 per year,” people say.

Pros of being a salaried employee

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

Cons of being a salaried employee

  • No overtime pay, so if you work more hours, it’s not reflected in the pay
  • Higher responsibility and more duties to perform
  • You might be expected to take work home with you.
  • When emergencies arise, you’re part of the team (or person) that needs to handle them, sometimes at very short notice.

Quarterly/Yearly Bonuses

Other perks that salaried workers frequently receive include bonuses and profit-sharing arrangements.

Depending on the business, you may be eligible for a yearly or quarterly bonus. This is in addition to your regular income and is frequently given as a percentage of your pay. For example, if you earn $80,000 per year and get a…

  • $80,000 x 5% bonus = $4,000 (gross)
  • $80,000 x 10% bonus = $8,000 (gross)
  • $80,000 x 15% bonus = $12,000 (gross)

Bonuses are frequently given when a company/department meets or exceeds a sales objective or achieves some sort of quota. 

It’s also worth noting that your bonus money may be taxed in a manner different than that of your usual pay. The employer determines it according to their policy.

Bankrate states, “A bonus is always a welcome bump in pay, but it’s taxed differently from regular income. Instead of adding it to your ordinary income and taxing it at your top marginal tax rate, the IRS considers bonuses to be “supplemental wages” and levies a flat 22 percent federal withholding rate.”

$85,000 a year is how much an hour?

  • $7,083 monthly salary
  • $3,269 bi-weekly
  • $1,635 a weekly income
  • $327 a day
  • $40.86 an hour (for 8 hr workday)

All figures are gross (before taxes).

At the end of the day

It’s important to remember that your salary requirements are unique to you. What may be enough for one person may not be enough for another. It’s important to remember that your salary is just a number. It doesn’t represent all of the amazing things you bring to the table.

But, if you’re looking for a ballpark figure, $80,000 a year is around $40 an hour. And with all of the payroll deductions we’ve talked about, that should leave you with a comfortable take-home pay.

Q: $80000 a year is how much an hour?

A: $38.46

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