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How much is $25 an hour in a year?

$25 per hour is $52000 per year. Find out how it’s calculated and pick up budgeting tips and side hustle ideas.

Have you ever wondered how much your annual salary would be if you earned $25 an hour? The truth is that many people who earn by the hour have no idea how much they earn in a year.

This information is important if you want to budget and manage your money properly. In this article, I’ll show you how to calculate your annual income by converting a $25-per-hour wage to an annual salary. I’ll also share some budgeting and side hustle tips so you can make the most of your earnings.

How much is $25 per hour in one year?

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When converting an hourly rate, such as $25 an hour, to an annual salary amount, you’ll need to start with the number of hours in your work week. In the example below, we’ll use a standard 40-hour work week.

sample count

1. The average full-time work week is 40 hours, and there are 52 weeks in a year.

2. Multiply 40 hours by 52 weeks to get the number of hours worked in a year: 40 x 52 = 2,080 hours

3. Multiplying the hourly rate of $25 by 2,080 hours, we arrive at the gross annual salary: $25 x 2,080 hours = $52,000/yr.

Comment$52,000 gross annual salary before any deductions for taxes, insurance, 401K, etc. Net income is what you will receive in your bank account.

part time work

If you work part-time for $25 an hour, the calculation is the same, you just need to adjust the weekly hours. For example:

20 hours x 52 weeks = 1,040 work hours in a year.

$25 x 1,040 hours = $26,000/yr

How does $25 per hour compare?

As mentioned, $25 per hour for a full time worker equates to $52000 per year. But how does this compare to the median income in the US?

$52,000 per worker exceeds the national median income of $48,672 (2019) but less than the median annual income of $68,703.

Is $25 a Good Hourly Rate?

The answer to this question depends on a variety of factors, such as the cost of living in your area and your desired lifestyle. However, we can compare this hourly rate to the national poverty level.

For a single person, the 2023 federal poverty level for a person without dependents was $14,580. If you have dependents on your family, the poverty level increases. For example, the poverty level for a family of four is $27,750. Based on these numbers, we can conclude that earning $25 an hour puts you well above the poverty line, especially if you’re single.

It is important to note that while $25 is not a high hourly rate, it is still possible to survive on this salary with careful budgeting and financial planning. By paying attention to your expenses, you can ensure that your income is sufficient to cover your needs and allow for a modest lifestyle.

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Whether or not your employer offers paid vacation can have a significant impact on your annual income. Assuming a 40-hour workweek over the course of a year, let’s explore two scenarios: with paid time off and without paid time off.

Scenario #1: With Paid Vacation

Many hourly workers starting a new job get two weeks of paid vacation each year. In this scenario, your annual income would still be $52,000, no change from the annual salary example above.

Scenario #2: Without Paid Leave

Sadly, not all employees are offered paid leave by their employers, which is why it’s important to plan ahead for your temporary loss of income.

If your annual salary is $52,000, but you take two weeks of unpaid leave, you will only work 50 weeks instead of 52. This is equivalent to 2,000 working hours (40 hours x 50 weeks). Your annual income would be reduced to $50,000 (2,000 hours x $25 per hour).

How much is $25 an hour after tax?

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It is important to understand the impact of income taxes on your hourly wage. Everyone’s situation is unique, but for the sake of this article, we’ll use the following basic assumptions:

  • federal tax rate, 12%
  • Social Security and Medicare (FICA) rates: 7.65%
  • state tax rate, 4%

gross annual salary: $52,000

Based on these estimates, your tax deductions would look like this:

  • federal tax: $6,240
  • Social Security and Medicare (FICA): $3,978
  • state tax: $2,080

Net Annual Salary: $39,702

After taxes and deductions are taken into account, your take-home pay would be approximately $39,702, which is less than $40,000 per year.

Remember that these calculations are only estimates, and your actual tax rate and deductions may differ.

Comment: Some US states do not impose state taxes on salaried income. In that case, you only owe federal taxes and FICA.

The following eight US states do not charge a state tax:

  1. Alaska
  2. Florida
  3. Tennessee
  4. Nevada
  5. South Dakota
  6. Texas
  7. washington
  8. Wyoming

Comment: New Hampshire Tax Interest and Dividend Income Purpose not taxed on salaried income,

Tips for Budgeting on a $25 Hourly Salary

By creating a budget and sticking to it, you can make your $25 an hour income go a long way. In your budget, you should plan to set aside money to cover future expenses, such as vacation, home downpayment, retirement, etc. You should also create an emergency fund to cover unexpected costs that are bound to arise.

Taking the time to properly manage your finances will set you up for success in the long term. Here are some practical steps you can take:

track your expenses

Take a look at your bank statement to find out where you’re spending your money each month. Fixed expenses include rent, mortgage, car payments and loan installments. On the other hand, variable expenses like groceries, gas and credit card bills can change from month to month.

reduce debt

If you have any debt, a portion of your budget should be allocated to pay it off. I recommend paying off high-interest debt like credit card balances first. You can also try to negotiate a lower interest rate on your loans with your lender.

managing discretionary spending

Discretionary spending refers to spending on non-essential items, such as entertainment or hobbies. It is recommended to keep discretionary spending to 5-10% of your net income. Prioritize paying your bills and moving money into savings, then assess how much you have left over to spend on discretionary items.

maximize your retirement savings

Consider enrolling in an employer-sponsored retirement plan like a 401k, where you can automatically have pre-tax income deducted each pay period. This will help you stay on top of your retirement planning and ensure you’re taking full advantage of any employer match options.

prioritize spending

Prioritize your spending and pay the most important bills first. Rent or mortgage, utilities and food should top the list, followed by other necessities such as transportation, insurance and medical expenses.

Review your budget regularly

Your expenses and income will change over time, so you should review your budget regularly. Make any necessary changes to ensure that your budget remains in line with your current financial situation.

Here’s a sample budget based on a salary of $25 an hour:

Expense total budget percentage of income
Accommodation $825 25%
transportation $265 8%
Eat $529 16%
utilities $165 5%
Insurance $131 4%
Health care $99 3%
Entertainment $131 4%
Savings $663 20%
miscellaneous $265 8%
Total $3073 93%

Types of Jobs That Pay $25 an Hour

Job search websites can be a good resource for someone looking for a job that pays $25 an hour. Here are some jobs that fall in and around this salary range:

  • data entry clerk
  • Bank tellers
  • Customer Service Manager
  • Administrative Assistant
  • Entry-Level Marketing Jobs
  • freelance writer
  • Food Service Jobs
  • virtual assistant
  • maintenance worker
  • security guard
  • event planners
  • medical device technician
  • surgical technologist
  • athletic trainer
  • freight broker
  • managers
  • movers
  • class a truck driver
  • warehouse worker

These occupations offer potential wages of $25 an hour or more. With hard work and dedication one can reach this point.

Side Hustle to Supplement Your $25 Income

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If you’re making $25 an hour but want to supplement your income, a side hustle may be just what you need. Here are some side hustle ideas that will allow you to earn extra cash in your spare time. you never know; You may also be able to earn some passive income.

delivery driving

In your spare time, consider becoming a delivery driver with companies like DoorDash, Uber Eats, or Instacart. You can earn more money by working during peak hours, such as the dinner rush, and pick and choose the delivery job that best suits you.

short term rental

If you have a spare room with a private entrance, consider listing it on a short-term rental platform like Airbnb. Present the room well, market it effectively, and keep it clean to attract guests and make more money.

virtual tuition

Do you have a degree in a particular subject? Become an online tutor for students around the world and earn $25 or more per hour. Top online learning websites include VIPKID and Chegg.


Whether you are skilled in photography, writing, or graphic design, freelance work offers a wide range of opportunities. Start by offering your services on freelance marketplaces like Fiverr and Upwork. Businesses hire freelancers all the time to build websites, write blog posts, or provide virtual assistant services.

offer your talents

Put your skills to use and help others in your local community. If you’re good at cleaning and organizing, have a green thumb, or have other talents, consider providing services such as pet sitting, dog walking, babysitting, and handymen.

online storefront

Starting an online store doesn’t require special talents. You can sell products from print-on-demand businesses using platforms like Etsy, Shopify, and Amazon without requiring any capital investment.

Final thoughts on $25 an hour

Living on a $25/hour wage is possible if you budget carefully, make smart financial decisions, and use available resources to increase your income. Consider taking on one or two jobs to supplement your primary job so you can reach financial stability faster.

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