# \$105 an Hour is How Much a Year? Before and After Taxes

With an excellent hourly rate of \$105, it’s reasonable to wonder what this high pay equates to over different time periods. This article will break down the gross and net weekly, monthly, and yearly earnings for \$105 per hour, calculating totals for both part-time and full-time schedules. We’ll examine how overtime pay and unpaid time off can impact total annual compensation at this rate.

We’ll also assess if \$105/hour is considered a good current salary by comparing it to inflation, standard of living, and similar wages. Relevant topics covered include: converting the hourly wage to various time frames, estimating annual earnings for part-time and full-time work, calculating take-home income after taxes, sample budgets and lifestyle costs, affording major purchases like a house or car, and strategies to increase pay further.

By providing this comprehensive overview, the article will illustrate precisely what a \$105 per hour wage equates to in concrete real-world terms.

## Convert \$105 Per Hour to Weekly, Monthly, and Yearly Salary

Input your wage and hours per week to see how much you’ll make monthly, yearly and more.

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### \$105 an Hour is How Much a Year?

If you make \$105 an hour, your yearly salary would be \$218,400. We calculate your annual income based on 8 hours per day, 5 days per week and 52 weeks in the year.

Hours worked per week (40) x Hourly wage(\$105) x Weeks worked per year(52) = \$218,400

### \$105 an Hour is How Much a Month?

If you make \$105 an hour, your monthly salary would be \$18,200. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage(\$105) x Weeks worked per year(52) / Months per Year(12) = \$18,200

### \$105 an Hour is How Much Biweekly?

If you make \$105 an hour, your biweekly salary would be \$8,400.

Hours worked per week (40) x Hourly wage(\$105) x 2 = \$8,400

### \$105 an Hour is How Much a Week?

If you make \$105 an hour, your weekly salary would be \$4,200. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage(\$105) = \$4,200

### \$105 an Hour is How Much a Day?

If you make \$105 an hour, your daily salary would be \$840. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage(\$105) = \$840

## \$105 an Hour is How Much a Year?

The basic formula to calculate your annual salary from an hourly wage is:

Hourly Rate x Hours Worked per Week x Number of Weeks Worked per Year = Annual Salary

So for a \$20 per hour job:

\$105 per hour x 40 hours per week x 52 weeks per year = \$218,400

However, this simple calculation makes some assumptions:

• You will work 40 hours every week of the year
• You will not get any paid time off

Therefore, it represents your earnings if you worked every week of the year, without any vacation, holidays, or sick days.

Accounting for Paid Time Off

The \$218,400 base salary does not yet factor in paid time off (PTO). Let’s assume the job provides:

• 2 weeks (10 days) paid vacation
• 6 paid holidays
• 3 paid sick days

This totals 19 paid days off, or nearly 4 weeks of PTO.

Importantly, this paid time off should not be deducted from the annual salary, since you still get paid for those days.

So with 4 weeks PTO, the annual salary would remain \$218,400 .

## Part time \$105 an hour is How Much a Year?

Your annual income changes significantly if you work part-time and not full-time.

For example, let’s say you work 35 hours per week instead of 40. Here’s how you calculate your new yearly total:

\$105 per hour x 35 hours per week x 52 weeks per year = \$191,100

By working 5 fewer hours per week (35 instead of 40), your annual earnings at \$105 an hour drop from \$218,400 to \$191,100.

That’s a \$27,300 per year difference just by working part-time!

Here’s a table summarizing how your annual earnings change depending on how many hours you work per week at \$105 an hour:

Hours Per Week Earnings Per Week Annual Earnings
40 \$4,200 \$218,400
35 \$3,675 \$191,100
30 \$3,150 \$163,800
25 \$2,625 \$136,500
20 \$2,100 \$109,200
15 \$1,575 \$81,900

The more hours per week, the higher your total yearly earnings. But part-time work allows for more life balance if you don’t need the full salary.

## \$105 an Hour With Overtime is How Much a Year?

Now let’s look at how overtime can increase your annual earnings.

Overtime kicks in once you work more than 40 hours in a week. Typically, you earn 1.5x your regular hourly wage for overtime hours.

So if you make \$105 per hour normally, you would make \$157.50 per hour for any hours over 40 in a week.

Here’s an example:

• You work 45 hours in a Week
• 40 regular hours paid at \$105 per hour = \$4,200
• 5 overtime hours paid at \$157.50 per hour = \$787.50
• Your total one Week earnings =\$4,200 + \$787.50 = \$4,987.50

If you worked 45 hours each week for 52 weeks, here’s how your annual earnings increase thanks to overtime pay:

\$4,987.50 per week x 52 weeks per year = \$259,350

That’s \$40,950 more than you’d earn working just 40 hours per week at \$105 an hour.

Overtime can add up! But also consider taxes and work-life balance when deciding on extra hours.

Here’s a table summarizing how your annual earnings change depending on how many hours you work per week at \$105 an hour:

 Overtime hours per work day Hours Per Week Earnings Per Week Annual Earnings 0 40 \$4,200 \$218,400 1 45 \$4,987.50 \$259,350 2 50 \$5,775 \$300,300 3 55 \$6,562.50 \$341,250 4 60 \$7,350 \$382,200 5 65 \$8,137.50 \$423,150 6 70 \$8,925 \$464,100 7 75 \$9,712.50 \$505,050

## How Unpaid Time Off Impacts \$105/Hour Yearly Earnings

So far we’ve assumed you work 52 paid weeks per year. Any unpaid time off will reduce your total income.

For example, let’s say you take 2 weeks of unpaid leave. That brings your paid weeks down to 50:

Hours worked per week (40) x Hourly wage(\$105) x Weeks worked per year(50) = \$210,000 annual salary

With 2 weeks unpaid time off, your annual earnings at \$105/hour would drop by \$8,400.

The table below summarizes how your annual income changes depending on the number of weeks of unpaid leave.

 Weeks of unpaid leave Paid weeks per year Earnings Per Week Annual Earnings 0 52 \$4,200 \$218,400 1 51 \$4,200 \$214,200 2 50 \$4,200 \$210,000 3 49 \$4,200 \$205,800 4 48 \$4,200 \$201,600 5 47 \$4,200 \$197,400 6 46 \$4,200 \$193,200 7 45 \$4,200 \$189,000

## Key Takeaways for \$105 Hourly Wage

In summary, here are some key points on annual earnings when making \$105 per hour:

• At 40 hours per week, you’ll earn \$218,400 per year.
• Part-time of 30 hours/week results in \$163,800 annual salary.
• Overtime pay can boost yearly earnings, e.g. \$40,950 extra at 45 hours/week.
• Unpaid time off reduces your total income, around \$8,400 less per 2 weeks off.
• Your specific situation and location impacts taxes and PTO.

Knowing your approximate annual salary and factors impacting it makes it easier to budget and plan your finances. The next step is calculating take-home pay after deductions like taxes.

## \$105 An Hour Is How Much A Year After Taxes

Figuring out your actual annual earnings based on an hourly wage can be complicated once taxes are taken into account. In addition to federal, state, and local income taxes, 7.65% of your gross pay also goes to Social Security and Medicare through FICA payroll taxes. So how much does \$105 an hour equal per year after FICA and income taxes are deducted from your gross pay?

Below we’ll walk through the steps to calculate your annual net take home pay if you make \$105 per hour. This will factor in estimated federal, FICA, state, and local taxes so you know exactly what to expect.

### Factoring in Federal Income Tax

Your federal income tax will be a big chunk out of your gross pay. Federal tax rates range from 10% to 37%, depending on your tax bracket.

To estimate your federal income tax rate and liability:

Look up your federal income tax bracket based on your gross pay.

2023 tax brackets: single filers

Tax rate Taxable income bracket Tax owed
10% \$0 to \$11,000. 10% of taxable income.
12% \$11,001 to \$44,725. \$1,100 plus 12% of the amount over \$11,000.
22% \$44,726 to \$95,375. \$5,147 plus 22% of the amount over \$44,725.
24% \$95,376 to \$182,100. \$16,290 plus 24% of the amount over \$95,375.
32% \$182,101 to \$231,250. \$37,104 plus 32% of the amount over \$182,100.
35% \$231,251 to \$578,125. \$52,832 plus 35% of the amount over \$231,250.
37% \$578,126 or more. \$174,238.25 plus 37% of the amount over \$578,125.

For example, if you are single with \$218,400 gross annual pay, your federal tax bracket is 32%.

Your estimated federal tax would be:

\$37,104 + (\$218,400 – \$182,100) x 32% = \$48,720

So at \$105/hour with \$218,400 gross pay, you would owe about \$48,720 in federal income taxes.

### Considering State Income Tax

In addition to federal tax, most states also charge a state income tax. State income tax rates range from about 1% to 13%, with most falling between 4% and 6%.

Key Takeaways

• California, Hawaii, New York, New Jersey, and Oregon have some of the highest state income tax rates.
• Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t impose an income tax at all.
• Another 10 U.S states have a flat tax rate—everyone pays the same percentage regardless of how much they earn.

A State-by-State Comparison of Income Tax Rates

STATE TAX RATES LOWEST AND HIGHEST INCOME BRACKETS
Florida 0% None
South Dakota 0% None
Tennessee 0% None
Texas 0% None
Washington 0% None
Wyoming 0% None
Colorado 4.55% Flat rate applies to all incomes
Illinois 4.95% Flat rate applies to all incomes
Indiana 3.23% Flat rate applies to all incomes
Kentucky 5% Flat rate applies to all incomes
Massachusetts 5% Flat rate applies to all incomes
New Hampshire 5% Flat rate on interest and dividend income only
North Carolina 4.99% Flat rate applies to all incomes
Pennsylvania 3.07% Flat rate applies to all incomes
Utah 4.95% Flat rate applies to all incomes
Michigan 4.25% Flat rate applies to all incomes
Arizona 2.59% to 4.5% \$27,806 and \$166,843
Arkansas 2% to 5.5% \$4,300 and \$8,501
California 1% to 13.3% \$9,325 and \$1 million
Connecticut 3% to 6.99% \$10,000 and \$500,000
Delaware 0% to 6.6% \$2,000 and \$60,001
Alabama 2% to 5% \$500 and \$3,001
Georgia 1% to 5.75% \$750 and \$7,001
Hawaii 1.4% to 11% \$2,400 and \$200,000
Idaho 1.125% to 6.5% \$1,568 and \$7,939
Iowa 0.33% to 8.53% \$1,743 and \$78,435
Kansas 3.1% to 5.7% \$15,000 and \$30,000
Louisiana 1.85% to 4.25% \$12,500 and \$50,001
Maine 5.8% to 7.15% \$23,000 and \$54,450
Maryland 2% to 5.75%  \$1,000 and \$250,000
Minnesota 5.35% to 9.85% \$28,080 and \$171,221
Mississippi 0% to 5% \$5,000 and \$10,001
Missouri 1.5% to 5.3% \$1,121 and \$8,968
Montana 1% to 6.75% \$2,900and \$17,400
Nebraska 2.46% to 6.84% \$3,340 and \$32,210
New Jersey 1.4% to 10.75% \$20,000 and \$1 million
New Mexico 1.7% to 5.9% \$5,500 and \$210,000
New York 4% to 10.9% \$8,500 and \$25 million
North Dakota 1.1% to 2.9% \$41,775 and \$458,350
Ohio 0% to 3.99% \$25,000 and \$110,650
Oklahoma 0.25% to 4.75% \$1,000 and \$7,200
Oregon 4.75% to 9.9% \$3,750 and \$125,000
Rhode Island 3.75% to 5.99% \$68,200 and \$155,050
South Carolina 0% to 7% \$3,110 and \$15,560
Vermont 3.35% to 8.75% \$42,150 and \$213,150
Virginia 2% to 5.75% \$3,000 and \$17,001
Washington, D.C. 4% to 9.75% \$10,000 and \$1 million
West Virginia 3% to 6.5% \$10,000 and \$60,000
Wisconsin 3.54% to 7.65% \$12,760 and \$280,950

To estimate your state income tax:

Look up your state income tax rate based on your gross pay and filing status.

Multiply your gross annual pay by the state tax rate.

For example, if you live in Pennsylvania which has a flat 3.07% tax rate, your estimated state tax would be:

\$218,400 gross pay x 3.07% PA tax rate = \$6,704.88 estimated state income tax

So with \$218,400 gross annual income, you would owe around \$6,704.88 in Pennsylvania state income tax. Make sure to check your specific state’s rates.

### Factoring in Local Taxes

Some cities and counties levy local income taxes ranging from 1-3% of taxable income.

To estimate potential local taxes you may owe:

• Check if your city or county charges a local income tax.
• If yes, look up the local income tax rate.
• Multiply your gross annual pay by the local tax rate.

For example, say you live in Columbus, OH which has a 2.5% local income tax. Your estimated local tax would be:

\$218,400 gross pay x 2.5% local tax rate = \$5,460 estimated local tax

So with \$218,400 in gross earnings, you may owe around \$5,460 in Columbus local income taxes. Verify rates for your own city/county.

### Accounting for FICA Taxes (Social Security & Medicare)

FICA taxes are a combination of Social Security and Medicare taxes that equal 15.3% of your earnings. You are responsible for half of the total bill (7.65%), which includes a 6.2% Social Security tax and 1.45% Medicare tax on your earnings.

In 2023, only the first \$160,200 of your earnings are subject to the Social Security tax

There is an additional 0.9% surtax on top of the standard 1.45% Medicare tax for those who earn over \$200,000 (single filers) or \$250,000 (joint filers).

To estimate your FICA tax payment:

\$160,200 x 6.2% + \$200,000 x 1.45% + \$18,400 x 0.9% = \$12,998

So you can expect to pay about \$12,998 in Social Security and Medicare taxes out of your gross \$218,400 in earnings.

### Total Estimated Tax Payments

Based on the examples above, your total estimated tax payments would be:

Federal tax: \$48,720

State tax: \$6,704.88

Local tax: \$5,460

FICA tax: \$12,998

Total Estimated Tax: \$73,882.88

### Calculating Your Take Home Pay

To calculate your annual take home pay at \$105 /hour:

2. Subtract your estimated total tax payments

\$218,400 gross pay – \$73,882.88 Total Estimated Tax = \$144,517.12 Your Take Home Pay

n summary, if you make \$105 per hour and work full-time, you would take home around \$144,517.12 per year after federal, state, local , FICA taxes.

Your actual net income may vary depending on your specific tax situation. But this gives you a general idea of what to expect.

## Convert \$105 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make \$105 an hour and work full-time (40 hours per week), your estimated yearly salary would be \$218,400 .

The \$218,400 per year salary does not account for taxes. Federal, state, and local taxes will reduce your take-home pay. The amount withheld depends on your location, filing status, dependents, and other factors.

Just now during our calculation of \$105 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

• You are single with \$218,400 gross annual pay, your federal tax bracket is 32 %.
• You live in Pennsylvania which has a flat 3.07% tax rate
• You live in Columbus, OH which has a 2.5% local income tax.

In the end, we calculated your Total Estimated Tax is \$73,882.88 , Your Take Home Pay is \$144,517.12 , Total tax rate is 33.83%.

So next we’ll use 33.83% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

### \$105 Per Hour to Yearly, Monthly, Biweekly, Weekly,and Week Salary After Taxes Table

 Income before taxes Estimated Tax Rate Income Taxes After Tax Income Yearly Salary \$218,400 33.83% \$73,882.88 \$144,517.12 Monthly Salary \$18,200 33.83% \$6,156.91 \$12,043.09 BiWeekly Salary \$8,400 33.83% \$2,841.65 \$5,558.35 Weekly Salary \$4,200 33.83% \$1,420.82 \$2,779.18

### \$105  an hour is how much a year after taxes

Here is the adjusted yearly salary after a 33.83% tax reduction:

• Yearly salary before taxes: \$218,400
• Estimated tax rate: 33.83%
• Taxes owed (33.83% * \$218,400 )= \$73,882.88
• Yearly salary after taxes: \$144,517.12
Hourly Wage Hours Worked Per Week Weeks Worked Per Year Total Yearly Salary Estimated Tax Rate Taxes Owed After-Tax Yearly Salary
\$105 40 52 \$218,400 33.83% \$73,882.88 \$144,517.12

### \$105 an hour is how much a month after taxes

To calculate the monthly salary based on an hourly wage, you first need the yearly salary amount. Then divide by 12 months.

• Yearly salary before taxes at \$105 per hour: \$218,400
• Divided by 12 months per year: \$218,400 / 12 = \$18,200 per month

The monthly salary based on a 40 hour work week at \$105 per hour is \$18,200 before taxes.

After applying the estimated 33.83% tax rate, the monthly after-tax salary would be:

• Monthly before-tax salary: \$18,200
• Estimated tax rate: 33.83%
• Taxes owed (33.83% * \$18,200 )= \$6,156.91
• Monthly after-tax salary: \$12,043.09

Monthly Salary Based on \$105 Per Hour

Hourly Wage Yearly Salary Months Per Year Before-Tax Monthly Salary Estimated Tax Rate Taxes Owed After-Tax Monthly Salary
\$105 \$218,400 12 \$18,200 33.83% \$6,156.91 \$12,043.09

### \$105 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at \$105 per hour:

• Hourly wage: \$105
• Hours worked per week: 40
• Weeks per biweekly pay period: 2
• \$105 * 40 hours * 2 weeks = \$8,400 biweekly

Applying the 33.83%estimated tax rate:

• Biweekly before-tax salary: \$8,400
• Estimated tax rate: 33.83%
• Taxes owed (33.83% * \$8,400 )= \$2,841.65
• Biweekly after-tax salary: \$5,558.35

Biweekly Salary at \$105 Per Hour

Hourly Wage Hours Worked Per Week Weeks Per Pay Period Before-Tax Biweekly Salary Estimated Tax Rate Taxes Owed After-Tax Biweekly Salary
\$105 40 2 \$8,400 33.83% \$2,841.65 \$5,558.35

### \$105 an hour is how much weekly after taxes

To find the weekly salary based on an hourly wage, you need to know the number of hours worked per week. At 40 hours per week, the calculation is:

• Hourly wage: \$105
• Hours worked per week: 40
• \$105 * 40 hours = \$4,200 per week

Accounting for the estimated 33.83% tax rate:

• Weekly before-tax salary: \$4,200
• Estimated tax rate: 33.83%
• Taxes owed (33.83% * \$4,200 )= \$1,420.82
• Weekly after-tax salary: \$2,779.18

Weekly Salary at \$105 Per Hour

Hourly Wage Hours Worked Per Week Before-Tax Weekly Salary Estimated Tax Rate Taxes Owed After-Tax Weekly Salary
\$105 40 \$4,200 33.83% \$1,420.82 \$2,779.18

### Key Takeaways

• An hourly wage of \$105 per hour equals a yearly salary of \$218,400 before taxes, assuming a 40 hour work week.
• After accounting for an estimated 33.83% tax rate, the yearly after-tax salary is approximately \$144,517.12 .
• On a monthly basis before taxes, \$105 per hour equals \$18,200 per month. After estimated taxes, the monthly take-home pay is about \$12,043.09 .
• The before-tax weekly salary at \$105 per hour is \$4,200 . After taxes, the weekly take-home pay is approximately \$2,779.18 .
• For biweekly pay, the pre-tax salary at \$105 per hour is \$8,400 . After estimated taxes, the biweekly take-home pay is around \$5,558.35 .

Understanding annual, monthly, weekly, and biweekly salary equivalents based on an hourly wage is useful when budgeting and financial planning. Taxes make a significant difference in take-home pay, so be sure to account for them when making income conversions. Use this guide as a reference when making salary calculations.

## What Is the Average Hourly Wage in the US?

Last Updated: Sep 1 2023

US Average Hourly Earnings is at a current level of \$33.82, up from 33.74 last month and up from 32.43 one year ago. This is a change of 0.24% from last month and 4.29% from one year ago.

Average Hourly Earnings is the average dollars that a private employee makes per hour in the US. This metric is a part of one of the most important releases every month which includes unemployment numbers as well. This is normally released on the first Friday of every month. This metric is released by the Bureau of Labor Statistics (BLS).

## What is the average salary in the U.S.?

Last Updated: July 18, 2023

The U.S. Bureau of Labor Statistics uses median salary data rather than averages to avoid skewed numbers from outlying high and low numbers. Median weekly earnings of the nation's 121.5 million full-time wage and salary workers were \$1,100 in the second quarter of 2023, the U.S.

If a person works 52 weeks in the year, then this represents a national annual salary of \$57,200.

## Is \$105 an Hour a Good Salary?

Whether \$105 an hour is considered a good salary largely depends on where you live and your lifestyle expectations. In lower cost areas of the country, this hourly wage goes a lot further. But in major metropolitan areas like New York City or San Francisco, everything from rent to groceries is far more expensive.

To put \$105 an hour in perspective, the median hourly wage in the United States is around \$20 an hour. So a job paying \$105 an hour is clearly well above what a typical American worker earns. However, the cost of living varies tremendously. Making \$105 an hour in rural Iowa is not the same as making that wage in NYC.

According to the U.S. Census Bureau, the median household income in the United States is about \$67,000 a year. Assuming a full-time job, \$105 an hour works out to an annual salary that is more than three times higher than the median. So purely looking at the number, this wage seems extremely generous. But again, where you live is a major factor.

Overall, \$105 an hour is a very high wage. But even in high cost urban areas, it provides an upper middle class or wealthy lifestyle. In lower cost regions, this hourly pay allows for a lavish standard of living.

## Jobs that pay \$105 an hour

Very few jobs pay \$105 an hour or more, even with extensive experience. This hourly wage is mostly earned by top professionals like:

• Physicians – Some specialist doctors like orthopedic surgeons, anesthesiologists and oncologists can charge over \$105 per hour. Primary care doctors typically earn less.
• Dentists – Experienced dentists who own their own practice in affluent areas can earn \$105 or more per hour. This allows them to earn \$200,000+ a year.
• Lawyers – Top partners at major law firms often bill their time at \$105/hour or higher. Lawyers just starting out earn far less.
• Executives – CEOs and other C-suite executives at Fortune 500 companies can make over \$105 per hour. Stock options and bonuses are often part of compensation.
• Consultants – Self-employed consultants in fields like business, IT and healthcare can charge over \$105/hour for their expert advice and services.
• Finance – Experienced investment bankers, portfolio managers, and hedge fund professionals may earn over \$105/hour once they reach senior levels.
• Small business owners – Owners of lucrative small businesses like contractors, specialty retail stores, restaurants or services firms can potentially earn over \$105/hour if the business is successful enough.

As you can see, \$105 an hour is mostly reserved for the elite levels of high paying professions. Very few make this wage right out of college. It often takes many years to work up to this income level.

## Can You Live Off \$105 An Hour?

The answer to whether you can live off of \$105 an hour is yes for pretty much anyone, anywhere in the country. While costs are higher in some cities, this wage provides a very comfortable living even in expensive urban areas like San Francisco and New York.

At \$105/hour with full time work, you can afford just about any housing or rental costs. Transportation, food, entertainment and other costs are readily affordable without pinching pennies. At this wage, you can build substantial savings and investments while also enjoying plenty of discretionary spending.

Some key factors demonstrating this income level is quite livable:

• Housing – At \$105/hour you can afford homes costing \$500,000+ in most markets and luxury rentals in high cost cities.
• Transportation – Owning a luxury car and paying for parking, insurance and maintenance is affordable.
• Food – You can eat out frequently or buy higher end groceries. Food costs won’t hold you back.
• Lifestyle – Pursuing expensive hobbies, traveling often, and indulging in entertainment is reasonable on this salary.
• Healthcare – Out-of-pocket medical costs and insurance premiums are readily affordable.
• Saving – You can max out tax-advantaged retirement contributions and still have surplus income.

While everyone’s costs are different, \$105 an hour provides a cushy lifestyle by any measure. The challenge is more about smartly managing the wealth this income level enables.

## The impact of inflation on the value of \$105 an hour

With U.S. inflation recently hitting 40 year highs, it’s important to consider the impact of rising prices on an hourly wage like \$105 an hour. Inflation erodes the purchasing power and living standard over time.

Here are some ways that inflation diminishes the value and buying power of \$105 per hour:

• Housing appreciation – As home values and rents rise faster than wages, more of your \$105 an hour income will need to be devoted to housing costs.
• Food inflation – Grocery bills are increasing due to inflation, further reducing disposable income. Dining out also becomes more expensive over time.
• Transportation costs – Vehicles, gasoline and public transit costs all typically rise faster than wages. Just commuting to work eats up more of the \$105 per hour.
• Healthcare costs – Premiums, deductibles and out-of-pocket costs for healthcare are rising rapidly above wage growth.
• Reduced savings – High inflation makes it harder to accumulate wealth and invest money. Less of the \$105 an hour can be saved.
• Higher interest rates – To combat inflation, interest rates rise which increases the cost of borrowing for homes, cars and education.
• Bracket creep – As wages rise to keep pace with inflation, more income falls into higher tax brackets resulting in higher taxes owed.

Over decades, inflation can substantially dampen the very high standard of living \$105 an hour can provide right now. Wage growth must outpace rising prices to maintain purchasing power long-term.

## 5 Ways To Increase Your Hourly Wage

For those earning less than \$105 an hour, here are some potential ways to increase your hourly pay rate over time:

• Get an advanced degree – Earning a masters, doctorate, medical or law degree opens doors to high paying professions. Many careers with \$105+ hourly earning potential require a degree.
• Gain specialized skills – Become an expert in high demand fields like software engineering, data science, or nursing. Specialized skills drive higher wages.
• Change industries – Transition into a higher paying industry like healthcare, finance, tech or law for greater earning potential. Each industry has its own pay scales.
• Work for larger companies – Large corporations tend to pay more generous wages for the same roles compared to smaller companies.
• Become a business owner – Building your own company that generates over \$200,000 in annual profits could enable \$100+ hourly earnings after years of growth and success.
• Move to a higher paying city – Some metro areas simply offer stronger wages across industries. However, costs are higher too.

Reaching \$100+ per hour often takes many years of strategic moves and career planning for most people. Adjust expectations and stick to a long term path.

## Buying a car on \$105 an hour

At an income of \$105 an hour, buying a car is quite affordable even if you splurge on a luxury vehicle. Here are some tips for buying a car at this wage:

• Consider paying 100% in cash rather than financing. You likely have substantial savings and investments.
• New luxury cars are attainable including brands like Mercedes, BMW, Lexus and Cadillac. Just don’t overspend on exotic hyper-cars.
• Used cars from 2-3 years old offer value if you want to save money. Aim for certified pre-owned.
• Only buy what you can truly afford – just because you make \$105/hour doesn’t mean you should spend lavishly on a car. Lifestyle inflation causes trouble for many high income earners.
• Factor in insurance, fuel and maintenance costs before deciding which car to buy. High-end models often cost more to own long-term.
• If you do finance, shop around for the lowest interest rates and pay off the car quickly. Don’t accept high interest.
• Leasing could be an option, but you pay less long-term by purchasing.

Overall, \$105 an hour income makes buying pretty much any normal passenger vehicle practical if done responsibly. Just avoid overextending your budget.

## Can You Buy a House on \$105 An Hour?

Absolutely, yes. At \$105 an hour, buying a very nice house is quite realistic in any housing market. Here are some tips:

• Get pre-approved for a jumbo mortgage if needed for higher priced homes. Consider a 20-25% downpayment.
• Shop for homes priced at 4-5x your \$219,000 annual salary as a baseline, then modify for local real estate costs and your preferences.
• Explore higher end neighborhoods and amenities like newer construction, custom finishes and prime locations.
• You can likely afford a large mortgage payment at this income, but don’t over-borrow. Stay within your means.
• Pick a reasonable commute distance so you don’t waste time and money driving every day.
• Hire a knowledgeable real estate agent focused on luxury properties to find the best options and guide negotiations.
• Get a home inspection to assess condition and avoid expensive repairs after purchasing.

Buying a dream home is a realistic goal at \$105 per hour. Just set a budget and stick to it – don’t blow all your newfound earnings on housing.

## Example Budget For \$105 Per Hour

Here is one example of a monthly budget for living on \$105 an hour with wise financial priorities:

• Gross Monthly Income: \$8,400
• Taxes: \$2,100
• 401k/IRA: \$1,500
• Healthcare: \$400
• Mortgage/Rent: \$2,000
• Utilities: \$500
• Car Payment: \$500
• Car Insurance: \$100
• Gas: \$250
• Groceries: \$800
• Dining Out: \$500
• Shopping/Personal Care: \$500
• Entertainment: \$500
• Travel: \$800
• Other expenses: \$500
• Total: \$10,950

This budget allows for saving 20% of income, spending reasonably on necessities, and having abundant disposable income for leisure and entertainment. Adjust amounts based on your specific lifestyle and family size.

## In Summary

An income of \$105 an hour places you solidly in the upper-middle class or wealthy category. You can afford great housing, nice cars, frequent vacations, ample leisure spending and significant savings.

However, inflation still impacts purchasing power over decades. So you must carefully manage and invest earnings to maintain a wealthy lifestyle throughout life.

In high cost areas, \$105 per hour may not feel “rich” due to inflated prices. But it provides financial security and comfort virtually everywhere.

With smart money management, this income level enables an exceptional lifestyle now and later in life.