When I was first asked to break down how much $31 an hour equates to annually after taxes, I realized that there are a lot of nuances to explore. It’s not as straightforward as simply multiplying the hourly rate by the number of working hours in a year. There are different factors at play—such as the tax bracket you fall into, your filing status, state taxes, and deductions. In this article, I’ll dive deep into how to calculate your yearly salary from an hourly wage of $31, what deductions you can expect, and how various elements of the US tax system come into play.
Table of Contents
Understanding the Basics
Before I get into the specifics of calculating annual earnings and tax deductions, it’s important to understand the fundamentals.
- Hourly Rate: This is your wage per hour worked. In our example, we’re talking about $31 per hour.
- Full-time Work: The standard for full-time employment in the United States is typically 40 hours per week. I’ll assume a 40-hour work week to simplify the calculation.
- Tax Deductions: Your earnings are subject to federal, state, and possibly local income taxes, as well as Social Security and Medicare taxes. These deductions vary depending on your income level and where you live.
Step-by-Step Calculation: Before Taxes
To calculate how much you make annually before any taxes are deducted, the first thing you need to do is figure out how many hours you work in a year.
- Standard Full-Time Hours: 40 hours per week × 52 weeks = 2,080 hours per year.
Next, multiply your hourly rate by the total number of hours worked in a year:
- $31 per hour × 2,080 hours = $64,480 annually (before taxes).
Step-by-Step Calculation: After Taxes
Now, let’s take into account the tax deductions. As I mentioned earlier, these will depend on various factors like your income, tax bracket, and state of residence.
- Federal Taxes: The IRS has a progressive tax system, meaning the more you earn, the higher your tax rate. For 2025, the tax brackets are as follows:
| Income Range (Single) | Tax Rate |
|---|---|
| $0 – $11,000 | 10% |
| $11,001 – $44,725 | 12% |
| $44,726 – $95,375 | 22% |
| $95,376 – $182,100 | 24% |
| $182,101 – $231,250 | 32% |
| $231,251 – $578,100 | 35% |
| Over $578,101 | 37% |
Given a gross annual income of $64,480, you fall into the 22% tax bracket (after the first $44,725 is taxed at 12%).
- The first $11,000 is taxed at 10%: $11,000 × 10% = $1,100.
- The next $33,725 (from $11,001 to $44,725) is taxed at 12%: $33,725 × 12% = $4,047.
- The remaining $19,755 (from $44,726 to $64,480) is taxed at 22%: $19,755 × 22% = $4,350.
Add these up to get the total federal tax liability:
- $1,100 + $4,047 + $4,350 = $9,497.
- Social Security and Medicare Taxes: These are separate from income taxes and are applied at fixed rates. In 2025, the Social Security tax rate is 6.2% (up to $160,200), and the Medicare tax rate is 1.45% (with no income limit).
- Social Security: $64,480 × 6.2% = $3,997.76.
- Medicare: $64,480 × 1.45% = $936.96.
So, the total for Social Security and Medicare taxes is:
- $3,997.76 + $936.96 = $4,934.72.
- State Taxes: State income tax rates vary significantly across the United States. For simplicity, I’ll assume you live in California, where the state tax brackets are progressive. Here’s a quick snapshot for a single filer in 2025:
| Income Range (California) | Tax Rate |
|---|---|
| $0 – $10,099 | 1% |
| $10,100 – $23,942 | 2% |
| $23,943 – $37,788 | 4% |
| $37,789 – $52,455 | 6% |
| $52,456 – $66,295 | 8% |
| $66,296 – $338,639 | 9.3% |
| Over $338,640 | 13.3% |
For a $64,480 income, you’ll be taxed in the 8% bracket for income between $52,456 and $64,480, and 6% for income between $37,789 and $52,455, and so on. Let’s break it down:
- The first $10,099 is taxed at 1%: $10,099 × 1% = $100.99.
- The next $13,843 (from $10,100 to $23,942) is taxed at 2%: $13,843 × 2% = $276.86.
- The next $13,845 (from $23,943 to $37,788) is taxed at 4%: $13,845 × 4% = $553.80.
- The next $14,667 (from $37,789 to $52,455) is taxed at 6%: $14,667 × 6% = $880.02.
- The remaining $12,025 (from $52,456 to $64,480) is taxed at 8%: $12,025 × 8% = $962.
Add these up to get your total California state tax:
- $100.99 + $276.86 + $553.80 + $880.02 + $962 = $2,773.67.
- Total Tax Deductions: Now, let’s summarize your tax liabilities:
- Federal Taxes: $9,497
- Social Security and Medicare: $4,934.72
- State Taxes (California): $2,773.67
Total tax liability: $9,497 + $4,934.72 + $2,773.67 = $17,205.39.
After-Tax Salary
To find your take-home pay, subtract the total tax liability from your gross salary:
- $64,480 – $17,205.39 = $47,274.61.
So, after federal, state, and payroll taxes, you would take home approximately $47,274.61 for the year, or about $3,939.55 per month.
Comparison with Other States
State taxes can significantly affect your after-tax salary, so let’s look at how the same $64,480 would be taxed in a state with no state income tax—like Texas.
In Texas, you would only pay federal taxes and Social Security/Medicare taxes, which come to:
- Federal Taxes: $9,497
- Social Security and Medicare: $4,934.72
Your total tax liability would be:
- $9,497 + $4,934.72 = $14,431.72.
This means your take-home pay would be:
- $64,480 – $14,431.72 = $50,048.28 annually, or about $4,170.69 per month.
Conclusion
So, if you make $31 an hour, your annual salary before taxes is $64,480. However, the amount you take home after taxes will depend on your specific tax situation. For someone living in California, the after-tax income will be around $47,274.61. In a state like Texas, you could expect to take home closer to $50,048.28 annually. It’s essential to factor in your state’s tax policies, your filing status, and any deductions or credits you qualify for to get an accurate picture of your take-home pay.
Understanding these calculations can help you better plan your finances, whether you’re budgeting for monthly expenses, saving for future goals, or simply assessing the financial viability of a job offer.
