When it comes to your financial health, your income is one of the most important numbers in the equation. Additionally, there are a lot of details to consider how much money you actually earn each month. So, 45,000 a year is how much an hour? What about after taxes and benefits? Well, we’ve got the answers right here!

When you’re comparing the income potential of various job opportunities, it’s rarely as simple as “this job pays $X, and this job pays $Y.” Some jobs pay a salary, while others pay hourly. Some fall under different tax situations that can affect your take-home amounts.

And, of course, you’ll need to factor in other forms of compensation like benefits and bonuses, especially if you’re wondering how to save money from salary jobs.

That means if you’re wondering, “$45,000 a year is how much an hour?” — there is a simple answer and a detailed answer. Luckily, in this article, we’ll be looking at both! 

$45k a year is how much an hour…as gross pay in a 9-5 job? How much an hour is 45000 a year…after taxes?

How might this number be affected in a freelance job? What other factors should you consider? What kinds of jobs earn a $45k salary? Let’s find out together!

$45,000 a year is how much an hour, day, week, or month?

How much an hour is 45000 a year? Let’s start by looking at the numbers in their simplest form. 

If you’re working the equivalent of 40 hours a week for 52 weeks a year, then that adds up to 2080 hours over the course of one year. Thus, to answer $45k a year is how much an hour, we simply have to divide $45,000 / 2080. 

$45,000 a year is how much an hour? About $21.63.

Remember, this doesn’t factor in anything else.

For instance, holidays, vacation time, sick days, if you are working overtime, and things like that may shift your number of actual worked hours up or down. In addition, various paycheck deductions will affect your real take-home amount.

But in general, if you’re earning $45k a year, you can think of yourself as earning around $21 an hour.

Now, let’s crunch some of the other numbers… 

$45k a year is how much…	Total (gross) pay
Hourly	$21.63 an hour
Daily	$173.04 a day
Weekly	$865.20 a week
Biweekly	$1730.40 every two weeks
Monthly	$3460.80
Yearly	approximately $45,000.00

If you just wanted to know the simple answer to “$45k a year is how much an hour?” then you’re done! But if you’re curious about breaking down the details, let’s get into it.

How much an hour is 45000 a year after taxes?

Your income may look very different with pre-tax income vs. after taxes. Sure, your total salary may be $45,000, but your “real pay”—the amount you take home—will be less after Uncle Sam takes his cut. Let’s look at the three main categories of taxes you can expect to pay in the US.

Federal income taxes

In the US, we have a progressive federal tax system, which means that income taxes are charged at different rates based on tax brackets. So, not all of your income will be taxed at the same rate, and rates can change from year to year. 

According to Investopedia, for a single filer earning $45,000 in 2023, you’ll be taxed about $5,207 total:

• 10% on your first $11,000 = $1100
• 12% on the amount between $11,001 and $44,725 = $4047
• 22% on the amount between $44,726 and $45,000 = $60

As you can see, most of your income falls into the lower 10% or 12% brackets. The higher 22% rate would only apply to the last $275. (That’s why, contrary to a popular myth, “going up a tax bracket” never results in you making less money overall.)

Of course, these calculations don’t factor in any taxable income deductions, which can reduce what you owe. But to give you a general idea of average numbers, let’s keep a tally as we go! $45,000 – $5,207 brings your take-home income to $39,793 so far. 

Social Security and Medicare taxes

On your paycheck, you’ll also notice withholding lines for Social Security and Medicare taxes. These are a little more straightforward since they’re both a flat rate for everyone!

Someone earning $45,000 will pay about $3,442 in social security and Medicare tax, according to the IRS percentages. Here’s how it breaks down:

• Social security: your employer pays 6.2% and withholds another 6.2% from your paycheck. 6.2% of $45,000 =about $2,790
• Medicare: your employer pays 1.45% and withholds 1.45% from your check. 1.45% of $45,000 = about $652

Keeping the tally going, $39,793 – $3,442 means now you’re taking home $36,351.

State income taxes

Where you live can make a significant difference in how much you take home after taxes. However, some states don’t charge income tax at all. Others have a flat-rate state tax system that applies regardless of income. And many states mimic the federal progressive tax system by using income tax brackets. 

You can view all the current state tax rates here, according to NerdWallet.

Since this number varies from state to state, your take-home total could now be anywhere from around $34 to $36k. Local income taxes could lower this amount further.

If your post-tax income is closer to the lower end of $34,000, that would equate to an hourly take-home rate of approximately $16 per hour. 

Calculate your taxes

Since these figures can change based on the year, the state you live in, etc., it’s always best to crunch the numbers for yourself!

Plug your information into a tax calculator to easily add up all these figures based on your personal situation. That will give you the best personalized answer to $45,000 a year is how much an hour after taxes.

Expert tip: Calculate your total compensation not just salary

When you’re evaluating job opportunities, salary is only one part of the picture. You should always be thinking about the total compensation it offers.

A job may pay a base salary, and then have extra opportunities for bonuses or commission payments. Or, two jobs may have equivalent salaries, but one offers more paid time off, a higher 401(k) match, and a learning stipend.

As another example, even little things, like free gym memberships or office lunches, can be factored into your total compensation calculations.

Plus, don’t forget to consider factors that affect your life but may not come with a monetary price tag.
Does a job have flexible hours? Will you have to spend a lot of time commuting, or is it remote-friendly? Are you expected to be on call, or will you have a predictable work-life balance?

While you may have to make some compromises, weighing all these factors (along with your personal priorities) will help you make informed career choices that bring you satisfaction and financial gain.

Jobs and careers that pay $45,000 a year

Let’s take a peek at some of the jobs that fall smack dab in the $45,000 range. Additionally, we’ll see what kind of career advancement you can access from these jobs.

1. Dental assistant

Mean yearly wage according to the Bureau of Labor Statistics: $44,710

Dental assistants take X-rays, help with patients, and manage patient records, etc.

To level up in this career, you could become a Certified Dental Assistant (CDA) or pursue specialization to assist in areas like orthodontics or oral surgery. With experience and advanced training, you can move into higher-earning roles like dental office management or dental hygiene.

2. Office/administrative support

Mean yearly wage according to the Bureau of Labor Statistics: $45,550

The umbrella career of “office and administrative support professionals” encompasses administrative assistants, receptionists, data entry clerks, customer service representatives, HR assistants, and more.

People in these jobs may handle tasks like managing schedules, answering phones, organizing files, assisting customers, etc.

To work your way up from a role like this, you can pursue training for higher office roles, like executive assistant, office manager, HR representative, project manager, etc. Ask your manager if there are specific things you can do to reach the next level. You might also learn how to become a virtual assistant with no experience to earn more in a related field.

3. Bookkeeping, auditing, or accounting clerk

Median yearly wage, according to the Bureau of Labor Statistics: $45,860

This career can work out well if you are good at math and numbers. Typically, you’ll keep track of and produce financial records.

If you want to earn more, consider becoming an accountant, as the pay goes up significantly for this type of role.

4. Personal chef or cook

Mean yearly wage according to the Bureau of Labor Statistics: $45,510

If you have experience working in kitchens, becoming a private chef could be a welcome transition from the chaos of a restaurant.

For instance, individuals, families, and private organizations may hire private chefs to create menus, shop for ingredients, and cook meals that accommodate for various dietary needs and preferences.

Those who enjoy this field can focus on building a strong reputation and expanding their client base to wealthier individuals. Or, work towards opening your own catering business or restaurant.

How can I earn more than $45k a year?

Now you’ve answered that $45,000 a year is how much an hour question, and if you’re currently earning $45,000 a year and want to bump that number up, we’ve got you covered! Here are three ideas to help you bring in more cash.

1. Start a side hustle

If you have free time outside of your day job hours, starting a side business can immediately boost your income! And there are a ton of ideas, so you can choose a gig that best matches your skills, interests, and personality.

Freelancing

As a freelancer, you have the flexibility to choose your clients, projects, and work hours so you can work around your existing schedule.

Leverage your expertise in areas like writing, graphic design, web development, or digital marketing, and figure out how to start freelancing with no experience! As a beginner, you can find clients through platforms like Upwork and also Fiverr.

E-commerce business

You can set up an online store to sell a wide range of products, whether they’re physical goods or digital downloads. Figure out what to sell on Etsy or check out Shopify, which provides user-friendly tools to help you establish an E-commerce business. 

Service-based hustles

The beauty of service-based side hustles is that you can tailor them to your interests and expertise.

For example, do you love pets? Offer to pet sit or dog walk in your community.

Yoga buff? Then, get certified to teach classes at a local studio or gym!

Skilled at an academic subject like math or English? Become a tutor.

Gig economy apps

If you have a smartphone and a car, a new side gig could only be a few clicks away! Popular gig economy apps include ride-sharing services like Uber, food delivery platforms like DoorDash, and projects and tasks using a platform like Taskrabbit.

2. Improve your skills

Whether you want to climb the ladder in your current career or transition to a new field, it all starts with improving your skill set. Here are a couple of tips to start with.

Identify marketable skills

Take some time to research the skills that are in demand in your industry (or desired field).

For instance, these could be technical skills, soft skills like communication or leadership, or specialized knowledge that will set you apart.

Invest in education and training

Consider enrolling in online courses, workshops, or pursuing a higher degree or certification relevant to your career aspirations. Continuous learning will make you a more attractive candidate and equip you with the knowledge and confidence to take on more challenging roles and responsibilities.

Apply for a new job or promotion

Once you’ve honed your skills and feel confident in your abilities, it’s time to turn that into a higher salary! Update your resume, showcase your newly acquired skills, and actively find a new job that offers better compensation and growth prospects.

3. Earn passive income

Find the best passive income ideas to supplement your salary. Let’s check out a few of them!

Invest your money

Answering $45,000 a year is how much an hour is just part of the equation.

However, investing your money wisely can generate passive income streams over time. Stocks, real estate investments, ETFs, and other kinds of investments can yield dividends, interest, and capital gains that boost your income. Learn about how to start investing for beginners!

Create content

If you have creative talents or expertise in a particular field, consider creating content that can generate passive income.

For example, this could include writing and publishing books, creating online courses, building apps, etc.

Rent out your assets

You can rent out more things than you think—from designer clothing in your closet to tools in your garage. Or even sell designer handbags for cash! Platforms like Airbnb for property rentals or car-sharing services like Turo can help you monetize your assets when you’re not using them.

How much is $45000 a year biweekly?

If you’re paid on a strict schedule of every two weeks, 45k a year biweekly for your gross paycheck figure should be $1730. (Again, you can expect taxes and deductions to reduce the amount that actually hits your bank account!)

Many jobs pay employees every two weeks. Since there are 52 weeks in a year, we simply divide that number in half: there are 26 biweekly pay periods in a year. Then, we’ll divide $45,000 by 26 to get our answer.

Other jobs pay on a slightly different cadence, e.g., on the 1st and 15th of each month. This is almost every two weeks but shakes out to 24 pay periods throughout the year instead of 26. If you’re paid twice a month like this, your gross paycheck should be $1875 instead. And don’t forget to create a biweekly budget!

Is 45k a good salary?

It can be, but it depends on your lifestyle and circumstances. First Republic explains that the median annual wage in the US in 2022 should be around $54,132, based on median weekly income, which means $45k is technically a below-average salary. That said, the answer to this question is truly all relative. 

The cost of living is probably the biggest consideration here. A $45k salary will go much further in a rural or low-cost area compared to a major city with a high cost of living. 

It also depends on your personal circumstances.

E.g., do you have dependents? Single or dual-income household? How far along in your career are you? What other benefits and perks come with the job?

Ultimately, it’s up to you to consider how your salary aligns with your overall financial goals and quality of life. If you don’t feel like you’re earning enough, here are some tips on how to ask for a raise.

How much is $45,000 a year per month?

Dividing $45,000 by 12 comes out to $3750.00 a month, gross.

However, after taxes, your take-home pay will probably be closer to $35,000 (depending on various factors), which would leave you around $2900 per month for expenses.

Most of our bills are due on a monthly basis: rent or mortgage, car payments, insurance, credit cards, etc. When you’re budgeting with your monthly expenses list, it’s important to have a clear picture of your monthly income.

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Whether you’re aiming for a $45,000 annual income or higher right now, remember that your career journey is uniquely yours, and the possibilities are limitless when you’re armed with the right strategies and determination. Here are five tips to set yourself up for career success!