Last Updated on July 24, 2022
If you just got a job or a raise, making $25 an hour, you probably want to know how much money you expect to make in a year, month, or week.
Knowing how much you’re making before and after taxes can give you a better understanding of how to budget and if you can live off $25 an hour.
25 Dollars an Hour is How Much a Year?
Twenty-five dollars an hour is $52,000 a year.
How did we arrive at this number, you ask? If you’re working full-time at 40 hours a week, eight hours a day, multiply 25 by 40. You’ll end up with 1,000.
There are 52 weeks in a year. Multiply 1,000 by 52, and you end up with $52,000. Sounds great, right? Keep in mind this is your annual income before taxes.
How Much is $25 an Hour at 40 Hours a Week?
The first part of our above calculations revolves around a 40-hour workweek. To get your weekly income, multiply $25 by 40. The product of this is $1,000, which is how much you’ll earn a week before taxes.
How Much is $25 an Hour a Year After Taxes?
The amount in taxes taken out of your $52,000 a year salary will depend on where you live. In some states, you’ll pay as low as 16.5% or as high as 24%.
If you live in one of the several states that don’t require income tax, you’ll pay between 16.5% and 16.9%. After taxes, your take-home pay, at 16.5%, will be $43,420 per year.
Connecticut has the highest tax rate at 24%. When you live in Connecticut and make $52,000 a year, you’ll bring home $39,520 after taxes.
Since only one state has 24% in taxes, your take-home pay is likely to be more than $39,520 a year. The average tax rate in the United States is 20.5%. At this rate, you’ll bring home $41,340 a year.
So, your take-home pay per year after working full-time and making $25 an hour will likely be anywhere between $39,520 and $43,420.
Is $25 an Hour Considered Good Pay?
Earning $25 an hour can be considered good pay, depending on where you live. According to a survey, earning $50,000 a year in most states can let you live a comfortable life. But in states that have a higher cost of living, you’ll need a higher salary to live with “good” pay.
What you consider good pay and what your neighbour considers good pay may be different depending on your expenses and your household size.
Can You Live Off of $25 an Hour?
You absolutely can live off of $25 an hour. People live off much less.
Again, this does depend on the state you live in. Someone living in Texas is likely to live a lot more comfortably off of $25 an hour than someone in New York or Hawaii.
The best way to live off of $25 an hour, regardless of where you live, is to make sure you can afford where you’re living and then make a budget you can stick with.
Read more about other per hour calculations:
How Much is $25 an Hour Per Week?
How much you’ll earn per week at $25 an hour depends on how many hours a week you work. Full-time in the United States is between 30 and 40 hours per week.
If you work 40 hours a week at $25 an hour, you’ll earn $1,000 a week.
When you work 35 hours a week at $25 an hour, your weekly pay will be $875.
Lastly, if you work the minimum amount of hours to be considered full-time, 30 hours, at $25 an hour, you’ll earn $750 a week.
If you want to know what your take-home pay will be after taxes, you’ll need to know how much you pay in taxes based on your state.
How Much is $25 an Hour Bi-Weekly?
As we’ve figured out, working 40 hours a week at $25 will earn you $1,000 per week before taxes. If you get paid bi-weekly at your job, you can expect to earn $2,000 on every paycheck.
How Much is $25 an Hour Per Month?
If you’re trying to create a monthly budget when you earn $25 an hour, here’s how much you’ll make per month.
When you work full-time at 40 hours a week for four weeks, you’ll earn $4,000 a month before taxes.
If you want to know what your monthly income could look like after taxes, let’s base it on our earlier example. The lowest federal tax percent in the country is 16.5%, and the highest is 24%.
Therefore, your monthly take-home pay while working 40 hours a week at $25 will be between $3,293 and $3,618 after taxes.
Tips to Live on $25 an Hour
Living off of $25 an hour is entirely possible, depending on your situation. Even in more challenging situations, you can make it work with a little effort. If you’re making $25 an hour, here are a few tips for living off that income.
1. Live Below Your Means
Just because you make $25 an hour doesn’t mean you need to spend all your money. Living below your means will allow you to live a comfortable life while not falling into debt, going without a savings account, or defaulting on any payments you may have.
2. Save Money When You Can
When you live below your means, you’ll have money left over. The best thing to do with this money is to pay off any debts you may have or put it in savings for emergencies or a larger purchase you plan to make in the future.
3. Create a Budget and Stick to it
Having a budget and sticking to it is key to living with what you make with any income. Write down your expenses and compare them to what you earn after taxes at $25 an hour. You can adjust your budget as necessary but be realistic with yourself.