Is surviving on 20 dollars an hour in 2022 attainable in the United States, where housing costs have skyrocketed, and grocery and fuel prices have risen?
Because of the current economy, making ends meet on a $20-an-hour salary is more challenging. Many Americans can survive on a $20-an-hour wage, but it’s not that simple.
Whether you’ve received a pay raise or are seeking a new job, you may have to compare salaried pay with hourly wages. You may wonder whether you can live on $20 per hour.
This post will provide a comprehensive outline of how much you would make if you earned 20 dollars an hour before and after taxes.
We will also examine the list of the most lucrative jobs that pay 20 dollars an hour and require no exceptional degree. Let’s get started.
20 dollars an hour is how much a year?
You would earn $41,600 before taxes if you worked 20 dollars an hour for 40 hours each week for 52 weeks.
We did the math in two steps: First, we multiplied 40 by 52 to find the number of hours worked per year, which is 2,080. Next, we multiplied 2,080 by $20 to discover that $41,600 would be the yearly salary if you make $20 per hour.
Working full-time
A full-time worker in the United States works 35 to 40 hours a week. The above salary ($41,600) is based on a 40-hour workweek over 52 weeks annually.
If you work for about 35 hours a week and earn $20 an hour, you will make $36,400 annually. Here’s how: You will get a working week of 1,820 hours if you work 35 hours a week for 52 weeks. $36,400 will result if you multiply 1,820 hours by 20 dollars an hour.
Working part-time
Part-time employment requires less than 35 hours a week. Typically, employees working between 20 and 29 hours a week work part-time. You would earn $26,000 before taxes if you worked at least 25 hours weekly at $20 an hour.
Here’s how: You will get a working week of 1,300 hours if you work 25 hours a week for 52 weeks. $26,000 will result if you multiply 1,300 hours by 20 dollars an hour.
How much is 20 dollars an hour after taxes?
You will pay 15.6% ($6,489) in taxes if you earn $41,600 annually. This amount includes Federal taxes, Social Security, and Medical payments.
Working 40 hours a week, you will earn about $35,131 after taxes. If you work 25 hours a week part-time, your income after tax will be about $22,596.
In addition to the Federal income tax, some states impose state income taxes also (of about 3.2%). The range of tax rates is 10% to 35%, with the federal tax system being based on a progressive tax code that taxes wages according to income.
How much is 20 dollars an hour every day?
Working eight hours a day, you earn $160 before taxes on an hourly basis (8×20=160). If you work five hours a day, you make $100 before taxes on a daily wage of 20 dollars an hour (5×20=100).
How much is 20 dollars an hour every week?
Making $20 an hour, you’ll gross $800 per week if you work full-time (40 (hours per week) X $20 (an hour) = $800).
Working 25 hours a week at $20 an hour, you’ll get $500 per week (25 (hours weekly) X $20 (an hour) = $500).
You can also calculate this by dividing your yearly income by the average working weeks (52) in a year. For example, if your annual salary is $41,600, then: $41,600 ÷ 52 = $800.
How much is 20 dollars an hour bi-weekly?
If you work 40 hours weekly for 20 dollars an hour, you will take home $1,600 every two weeks before taxes. After taxes, you will take home about $1,351 every two weeks.
Working 25 hours a week and earning 20 dollars an hour results in an after-tax income of about $1,000 a fortnight.
To determine your bi-weekly salary, divide $41600 by 26, the number of bi-weekly payments you would get in a year. For instance, if your yearly pay is $41600, then: $41600 divided by 26 = $1600.
How much is 20 dollars an hour every month?
Working 40 hours a week and making $20 an hour, you would earn $3,466 monthly (before taxes). After taxes, you would receive around $2,928 each month.
You may make $2,160 a month working part-time (25 hours weekly) and earning $20 an hour, and you would net around $1,883 a month (after taxes).
You can determine your monthly income by dividing your annual salary by 12. For example, if your yearly pay is $41,600, then: $41600 ÷ 12 = $3466.
Summary table of 20 dollars an hour (working part-time)
The table shows how much a day, week, month, and year you earn when making 20 dollars an hour.
| Time frame | No. of working hours | Income before taxes | Income after taxes |
| Daily | 5 | $100 | $87 |
| Weekly | 25 | $500 | $435 |
| Bi-weekly | 50 | $1,000 | $869 |
| Monthly | 108 | $2,160 | $1,883 |
| Yearly | 1,300 | $26,000 | $22,596 |
Summary table of 20 dollars an hour (working full-time)
The table shows how much a day, week, month, and year you earn when making 20 dollars an hour (working full-time).
| Time frame | No. of working hours | Income before taxes | Income after taxes |
| Daily | 8 | $160 | $135 |
| Weekly | 40 | $800 | $676 |
| Bi-weekly | 80 | $1,600 | $1,351 |
| Monthly | 174 | $3,466 | $2,928 |
| Yearly (with unpaid vacation) | 2,000 | $40,000 | $33,845 |
| Yearly (with paid vacation) | 2,080 | $41,600 | $35,131 |
Jobs that pay 20 dollars an hour
Some workers can make excellent money without having a four-year college degree if they have the skills and experience required. It’s important to remember that although some applicants may have degrees, the following occupations typically do not need one.
Here are 15 jobs that pay 20 dollars an hour without a degree:
1. Physical therapy assistant
National average salary: $22.35 per hour
Primary duties: Physical therapy subordinates work under the supervision of physical therapists and help them in helping patients recover from injuries and illnesses.
2. Route driver
National average salary: $22.70 per hour
Primary duties: Route drivers transport supplies and materials safely and in compliance with organizational policies. They may work for mail companies or other entities that make regular deliveries.
3. Truck driver
National average salary: $23.32 per hour
Primary duties: Truck drivers transport goods across state and country lines in large commercial vehicles. They are responsible for adequately navigating their routes and delivering loads as instructed.
4. Hotel manager
National average salary: $23.51 per hour
Primary duties: Hotel managers supervise all hotel or resort facility activities. They direct the hotel staff, communicate with customers, and address any issues with the hotel guests. Hotel managers generally work their way up from an entry-level position.
5. Maintenance mechanic
National average salary: $23.61 per hour
Primary duties: Maintenance mechanics are responsible for monitoring a business’ equipment and ensuring it operates effectively. They assemble, install and test equipment regularly.
6. Solar installer
Source
National average salary: $23.65 per hour
Primary duties: Solar installers create the infrastructure for photovoltaic solar panels and install them on houses, buildings, and other structures by connecting them to electrical grids.
7. Medical coder
Source
National average salary: $23.87 per hour
Primary duties: Medical coders translate patient treatments into alphanumeric codes to organize medical documentation and file insurance claims.
8. Carpenter
National average salary: $23.92 per hour
Primary duties: Carpenters construct, install and repair wooden frameworks and buildings, such as door frames, rafters, cabinets, stairways, and more.
9. Paralegal
National average salary: $24.17 per hour
Primary duties: Paralegals assist lawyers and other legal professionals with clerical and supportive duties, such as calling witnesses and performing research.
10. Full charge bookkeeper
National average salary: $24.24 per hour
Primary duties: Full-charge bookkeepers are financial professionals responsible for issuing invoices, calculating pay, issuing payments, filing taxes, and creating financial statements.
11. Multimedia designer
National average salary: $24.30 per hour
Primary duties: Multimedia designers create and plan advertising materials in television commercials or online, such as animation, photography, text, and audio.
12. Audio-visual technician
National average salary: $24.73 per hour
Primary duties: Audiovisual (AV) technicians install, maintain, and monitor sound and video equipment for filming or conducting live events, such as concerts, sports games, and conventions.
13. Police officer
National average salary: $24.89 per hour
Primary duties: Police officers patrol areas to keep them safe from crime. They intervene when a crime occurs and investigate crimes after they are committed.
14. Proofreader
National average salary: $24.95 per hour
Primary duties: Proofreaders review books, magazines, pamphlets, and other materials to ensure their text is error-free, grammatically sound, and compelling.
15. Writer
National average salary: $25.09 per hour
Primary duties: Writers draft copy for various materials, such as books, journals, websites, newspapers, textbooks, manuals, and more.
Budget sample for 20 dollars an hour
A person who makes $2,928 after taxes each month when working at 20 dollars an hour may use this budget example.
In a 70/20/10 budget, 70% of income is towards monthly expenses, including entertainment, 20% is towards retirement and other financial goals, and 10% is to pay down debt.
| Expense | Amount |
| Rent/Mortgage | $1,100 |
| Utilities | $180 |
| Transportation | $250 |
| Groceries | $300 |
| Debt Repayment/Charitable Contributions | $293 |
| Insurance (Health/Life) | $100 |
| Savings (Long/Short Term) | $585 |
| Entertainment | $120 |
| Total income after taxes | $2,928 |
Is 20 dollars an hour enough to live on?
It is hard to say whether 20 dollars an hour is enough to live on if you’re a young worker. Location, lifestyle, and living costs are all factors. It will be challenging to cover your living expenses in some areas, whereas, in others, you’ll have some money left over at the end of the month.
There has been a surge in the cost of rent, food, and utilities in recent years, while wages remain stagnant. You may earn the federal minimum wage of $7.25 an hour in the United States, which would require two full-time jobs in some areas to maintain your household.
What is the verdict, then? Is 20 dollars an hour livable in today’s economy?
The answer is yes in most (excluding the most expensive) American cities. You’ll need to get imaginative with your budget and trim your expenses to live on 20 dollars an hour.
Unfortunately, those who live in cities like New York City, Honolulu, or San Francisco cannot survive on a yearly salary of $41,600.
Can you buy a house when making 20 dollars an hour?
It isn’t straightforward to figure out whether you can purchase a house for 20 dollars an hour in your city. If you are ready to live in a smaller or cheaper location, you can afford a mortgage on a house that costs less than $200,000 if you earn 20 dollars an hour.
According to the real estate listing firm Zillow, the average price for a house in the United States was $374,900 in 2021. That said, if you want to reside in the expensive cities of America or buy a big house, you will need more than $20 an hour.
Tips to live on 20 dollars an hour
If you reside in a location with a low cost of living and are single, it may be simple or even enjoyable to live on $20 per hour. If you live in New York and have children, $20 per hour will be challenging. There are some situations where 20 dollars an hour will not do the job, and others when it is almost luxurious.
For everyone in between, these suggestions may help you live on 20 dollars an hour:
- A budget known as the 50/20/30 formula, created by Sen. Elizabeth Warren, divides your after-tax income into 50 percent for obligations, 20 percent for savings and debt reduction, and 30 percent for discretionary spending. This will help you to save more.
- Keep accommodation expenses low.
- Save on auto and homeowner’s insurance.
- Search for free or cheap ways to have fun, such as playing online games, reading old novels, etc.
- Earn additional income by picking a side hustle.
All these tips will assist you in saving money and living comfortably no matter how much you earn.
Wrapping Up
Is $20 an hour a decent wage in the United States? More importantly, can you live on it? The answer is yes and no. Your responses will vary based on your situation.
If you’re willing to make some settlements and live in a modest home or apartment, you can live on $20 an hour. However, if you want to reside in a major city, you won’t be able to live on $20 an hour. You may have to get creative and take chances with part-time jobs to make ends meet.
