Are you applying for a job that pays $16 an hour?
Or is that the amount of money you’re currently being paid?
Either way, it’s natural to wonder what you’d take home in a year.
You might also want to know what a $16 per hour annual salary looks like after tax and/or if you work full versus part time.
Whatever the case, this post should help!
In it, I’ll try to answer your questions, as well as offering some thoughts on whether $16 per hour per year is enough to live off.
So, $16 an hour is how much a year? Let’s find out.
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$16.00 An Hour Is How Much a Year?
A $16 per hour annual salary is $33,280.
That’s the quickest and shortest answer I can give you!
…But it isn’t the most accurate. Why?
Because it doesn’t take into account anything like taxes or time off work. It’s simply the most you’d make if you worked full-time, week in and week out.
Here’s how I worked it out:
$16 per Hour Annual Salary – Full Time
The average full-time employee in America works between 35 and 40 hours a week.
For simplicity, let’s say you work 40.
To calculate $16 an hour as an annual salary, you’d do:
40 (hours) x 16 (wage) = 640.
That means you’re earning $640 each week. To figure out the annual amount, you’d then do:
640 (weekly wage) x 52 (weeks in a year) = $33280 per year.
And if you do 35 hours a week? Same process, except the calculation would be:
35 x 16 x 52 = $29120 per year.
Of course, working extra hours or taking time off for sickness/holidays would increase or decrease what you took home, respectively.
16 Dollars an Hour Salary – Part Time
Now let’s turn our attention to people who earn $16 an hour and work part-time.
How much do they make each year?
Part-time can mean different things to different people, of course. Some might work up to 35 hours every week, while other do just 5!
To keep things simple, let’s look at a part-time position that’s about average:
25 hours a week.
In this case, we’d do 25 x 16 x 52 = $20,800.
So, $16 an hour is how much a year if you work part-time?
But again, that’s if you’re working all year round! If you’re a normal human and take time off each year, then these numbers will drop.
$16 an Hour Yearly Salary After Tax
So far we’ve worked out your pre-tax income on $16 an hour.
Unfortunately, what you’ll actually take home will look considerably different when you take tax into account.
It’s hard to be super specific here though.
The amount of tax you pay depends on a bunch of factors, such as where you live and how old you are.
Taking into account federal tax, state tax, and social security, let’s say you pay an average of 20% though.
That’d mean your full-time income of $33,280 would shrink to $26,624.
Your part time income of $20,800 would now be $16,640.
That’s roughly $2,200 per month or $1,390 per month, respectively.
Can You Survive Off $16 an Hour?
Yes, technically speaking, you could live off $16 an hour.
Indeed, the poverty line for a 1-person household in America is $12,880, so you’d be well above that if you worked either full or part-time.
The poverty line for a 3-person household is $21,960 though.
That means you’d struggle to get by if you have 3 people trying to live off your $16 an hour income (especially after tax)…
For the sake of argument, let’s say it’s just you in the house.
It might not be much fun. And you’d probably have limited disposable income to indulge in life’s luxuries.
But you should manage – especially if you live in cheaper parts of the country.
Ultimately, it comes down to how much you work and spend.
If you keep your income stable and on the upper end of the $16 an hour annual salary, while also cutting out unnecessary expenditure, you should have plenty of money to both cover your outgoings and still be able to save.
$16 an Hour Is How Much a Year? Now You Know!
So, $16 an hour is how much a year?
In reality, it depends!
But the maximum you can expect to take home from a typical full-time role is $26,624. Throw in some overtime and that number will go up a bit further.
Want to see how much you’d earn on an 18-dollar hourly salary?