When looking for a new job, it’s typical to try to figure out if it will be a good salary or wage. So you see one that will pay \$40,000 per year? But how much is that an hour? And is that even a livable wage?

Well, keep reading to find out! You’ll get the whole breakdown and a monthly budget example.

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## How much is \$40000 an hour?

\$40,000 a year is \$19.23 an hour. This is based on working 40 hours every single week for the 52 weeks in a year (2080 hours). After taxes, your salary would be a few thousand dollars less. If you make \$40,000 per year, you would pay about \$6k to \$9k in taxes. To make \$40,000 per year after taxes are taken out, you would need a salary of about \$50,000 per year (or \$24.04 per hour).

\$40,000 per year breaks down to:

\$19.23 per hour (Annual ÷ 2080 hours)\$153.84 per day (Hourly x 8 hours)\$769.23 per week (Annual ÷ 52 weeks)\$1,538.46 biweekly (Weekly x 2)\$3,333.33 per month (Annual ÷ 12 months)

However, after taxes, \$40000 would be reduced to \$31,100 – \$33,800 per year depending on the state you live in. Your total take-home paycheck would be:

Weekly paycheck= \$598.08 to \$650Biweekly paycheck= \$1,196.15 to \$1,300Monthly paycheck= \$2,591.67 to \$2,816.67

Whoa! That’s a \$225/month difference between the highest and lowest taxed state. Meaning, one person could be paying \$2,700 extra per year in taxes. To make the most of your salary, you might want to live in a state that does not tax your income.

States that don’t tax wages: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee (per Investopedia)

### Similar Wages

20 an hour is how much a year? If you make \$20 per hour, your yearly salary would be \$41,600 before taxes. After taxes, that amount would be reduced to about \$31,900 to \$35,100 per year.

\$38,000 a year is how much an hour? An hourly salary of \$18.26 would give you \$38,000 per year before taxes.

\$41,000 a year is how much an hour? If you make \$41k per year, your hourly wage would be about \$19.71.

How much is \$42,000 a year per hour? An hourly salary of \$20.19 would give you \$42,000 per year before taxes.

How much is \$44,000 a year per hour? If you make \$44k per year, your hourly wage would be about \$21.15.

How much is \$45,000 a year per hour? If you make \$45k per year, your hourly wage would be about \$21.63.

## Is \$40,000 a good salary?

For my family, \$40,000 per year is a great salary. In fact, here’s how we lived on \$2,500 per month in San Diego. However, everyone’s situation and finances are different.

What counts as a good income depends on where you live, the cost of living in that area, your family size, etc. If you need to survive on \$40,000 a year, it may be accomplished through budgeting and reducing your expenses.

## Monthly Budget for \$40,000 Salary

You’re probably still not sure if you can manage a 40k salary. Well, I’ve got it figured out for you!

Here is an example of how much you should budget for your total monthly expenses. This budget breakdown assumes that you make \$2591.67 per month and you’re single. If the amounts don’t work for your life, play around with them a bit; but I urge you to always save first and foremost!

Savings of 10% = \$259Rent/ Mortgage= \$860 (⅓ of income)Utilities= \$200Car Payment= \$200Car Insurance= \$100Health Insurance= \$200Cellphone= \$50Internet= \$50Gas= \$60Groceries= \$150Personal & Misc= \$200Entertainment= \$100Total = \$2429 with \$162.67 leftover

So what do you think? This sample is not even a bare-bones budget. You could save \$200/month by not having a car payment and buying a cheap car. It is also possible to have cheaper car insurance, spend less on the personal, misc, and entertainment categories, etc.

40k a year is a good salary for a single person, but you can support a family on that amount as well. Where there is a will, there is a way! I, along with my siblings, were raised on that amount for a while and always lived a comfortable life. I’ve always had a roof over my head, shoes on my feet, and food in my stomach.

## How to Live on \$40,000 a Year

On any salary, the most important thing is to live below your means. Regardless of income, the main reason why people end up in debt is because they are spending more than they earn. If you want to live a life of financial freedom, that is not good.

The 4 main steps to being financially secure with your income are to:

Save money: Remember, save first then spend.

Learn more tips with my guide: How To Live On A Budget.

40k is a decent salary. But, if you just can’t make this salary work for your lifestyle, then it might be best to look for a better paying job, or pick up a side hustle.

## FAQ

What can I afford making 40k a year?

Keeping your budget at around ⅓ for housing costs (\$860), you could buy a home for around \$200,000 with a 30-year loan, and 3% interest rate.

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\$19.23 an hour is how much a year?

An hourly wage of \$19.23 comes out to \$40,000 per year. After taxes, that would come down to \$31,100 – \$33,800 depending on your state tax rate.