When considering a job paying $28 an hour, it’s essential to understand how much you will take home after taxes. The wage of $28 per hour sounds appealing, but what you earn after taxes is what matters most when planning your budget and finances. In this article, I’ll provide a deep dive into how much $28 an hour translates to in terms of annual income after taxes. I will break down the various factors that affect your net pay, including federal and state taxes, Social Security, Medicare, and other deductions, and help you understand the real take-home amount. By the end of this article, you will have a clearer picture of what you can expect to earn annually if you’re paid $28 per hour in the United States.
Table of Contents
Step 1: Calculate Gross Annual Income
The first step in understanding your income is to calculate your gross income. This is the total amount you earn before any deductions or taxes. To calculate gross income, you need to know your hourly wage, the number of hours you work each week, and the number of weeks you work each year. Let’s assume a typical full-time schedule, where you work 40 hours a week for 52 weeks in a year.
The formula to calculate gross annual income is:
\text{Gross Annual Income} = \text{Hourly Rate} \times \text{Hours per Week} \times \text{Weeks per Year}So, if you earn $28 per hour, and you work 40 hours a week for 52 weeks:
28 , \text{USD/hour} \times 40 , \text{hours/week} \times 52 , \text{weeks/year} = 58,240 , \text{USD/year}This means your gross income before taxes is $58,240.
Step 2: Federal Income Tax Deductions
Next, let’s break down the federal income tax. The United States uses a progressive income tax system, which means your income is taxed at different rates depending on how much you earn. The IRS has different tax brackets for different income ranges. As of 2025, the tax brackets for a single filer are:
- 10% on income up to $11,000
- 12% on income from $11,001 to $44,725
- 22% on income from $44,726 to $95,375
- 24% on income from $95,376 to $182,100
- 32% on income from $182,101 to $231,250
- 35% on income from $231,251 to $578,100
- 37% on income over $578,100
For a gross income of $58,240, we subtract the standard deduction, which is $13,850 for single filers in 2025. This leaves us with a taxable income of:
58,240 , \text{USD} - 13,850 , \text{USD} = 44,390 , \text{USD}Now, we calculate the federal tax based on the brackets.
- The first $11,000 is taxed at 10%:
The next $33,390 (from $11,001 to $44,390) is taxed at 12%:
33,390 \times 0.12 = 4,006.80 , \text{USD}So, the total federal income tax is:
1,100 + 4,006.80 = 5,106.80 , \text{USD}Step 3: State Income Tax Deductions
State income taxes vary depending on where you live. Some states, like Texas and Florida, have no state income tax, while others, such as California and New York, have relatively high state income tax rates. For the sake of this example, let’s use California’s state income tax rates for 2025, which are as follows:
- 1% on income up to $10,099
- 2% on income from $10,100 to $23,942
- 4% on income from $23,943 to $37,788
- 6% on income from $37,789 to $52,612
- 8% on income from $52,613 to $66,296
For a taxable income of $44,390 in California, we break it down as follows:
- The first $10,099 is taxed at 1%:
The next $13,843 (from $10,100 to $23,942) is taxed at 2%:
13,843 \times 0.02 = 276.86 , \text{USD}The next $13,846 (from $23,943 to $37,788) is taxed at 4%:
13,846 \times 0.04 = 553.84 , \text{USD}The remaining $6,602 (from $37,789 to $44,390) is taxed at 6%:
6,602 \times 0.06 = 396.12 , \text{USD}So, the total California state income tax is:
100.99 + 276.86 + 553.84 + 396.12 = 1,327.81 , \text{USD}Step 4: Social Security and Medicare Taxes
In addition to federal and state taxes, you must also pay Social Security and Medicare taxes. These are fixed percentages of your income:
- Social Security tax: 6.2% on income up to $160,200 (as of 2025)
- Medicare tax: 1.45% on all income (no cap)
Let’s calculate Social Security and Medicare taxes on your $58,240 salary:
- Social Security tax:
Medicare tax:
58,240 \times 0.0145 = 844.48 , \text{USD}Step 5: Total Tax Deductions
Now, let’s calculate the total tax deductions by summing the federal tax, state tax, and FICA (Social Security and Medicare) taxes:
- Federal tax: $5,106.80
- State tax (California): $1,327.81
- Social Security tax: $3,607.68
- Medicare tax: $844.48
Total tax deductions:
5,106.80 + 1,327.81 + 3,607.68 + 844.48 = 10,886.77 , \text{USD}Step 6: Net Pay After Taxes
To determine your net pay after taxes, subtract the total tax deductions from your gross income:
58,240 - 10,886.77 = 47,353.23 , \text{USD}Therefore, your annual take-home pay after taxes would be approximately $47,353.23.
Step 7: Comparison with Other Hourly Wages
To put this number in context, let’s compare the net income of someone earning $28 per hour with other hourly wage earners:
| Hourly Rate | Gross Annual Income | Federal Tax | State Tax (CA) | Social Security | Medicare | Total Tax Deductions | Net Annual Income |
|---|---|---|---|---|---|---|---|
| $28/hour | $58,240 | $5,106.80 | $1,327.81 | $3,607.68 | $844.48 | $10,886.77 | $47,353.23 |
| $30/hour | $62,400 | $6,186.00 | $1,427.00 | $3,868.80 | $906.00 | $12,387.80 | $50,012.20 |
| $35/hour | $72,800 | $8,006.00 | $1,627.00 | $4,513.60 | $1,055.60 | $15,202.20 | $57,597.80 |
As shown in the table, a higher hourly rate leads to a higher take-home pay, but the amount of taxes deducted also increases as income rises. The difference in net income between the hourly rates becomes more significant as the wages increase.
Additional Considerations
While the above analysis provides a general idea of what you can expect to earn, several other factors can influence your final take-home pay. For example, contributions to retirement plans like a 401(k), employer-sponsored health insurance premiums, union dues, or other voluntary deductions could further reduce your take-home pay. Additionally, if you qualify for tax credits such as the Earned Income Tax Credit (EITC) or Child Tax Credit, your tax liability may be reduced, resulting in more take-home income.
Your filing status (single, married, or head of household) also plays a significant role in determining how much you owe in federal taxes. If you’re married or head of household, you may benefit from a lower tax bracket, which could increase your net income.
Conclusion
Earning $28 an hour translates to a gross income of $58,240 annually. After accounting for federal and state taxes, as well as Social Security and Medicare deductions, your estimated take-home pay would be approximately $47,353.23 per year. This figure will vary based on other personal factors like tax credits or deductions
, but it provides a solid starting point for understanding your net income. As you can see, the income tax system in the United States is progressive, meaning that higher earners pay a higher percentage in taxes. Understanding how much you take home after taxes can help you plan your finances more effectively, set a realistic budget, and make informed decisions about your career.
