# \$175 an Hour is How Much a Year? Before and After Taxes

An hourly wage of \$175 is significantly higher than average, but what does it translate to in terms of weekly, monthly, and annual earnings? In this article, we’ll break down the gross and net pay for \$175 per hour, calculating totals for both full-time and part-time hourly work. We’ll look at how overtime and unpaid time off can impact yearly income at this pay rate.

We’ll also examine whether \$175/hour is considered a good salary in today’s job market by evaluating factors like inflation, standard of living, and how it compares to other common wages. Relevant topics include: converting the hourly rate to various time periods, estimating annual earnings for full and part-time schedules, the effect of taxes on net pay, sample budgets and lifestyle affordability, whether you can buy a house or car comfortably, and strategies for increasing your hourly pay.

By providing this comprehensive overview, the article will illustrate the earning potential of \$175 per hour and what it equates to in practical terms.

## Convert \$175 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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### \$175 an Hour is How Much a Year?

If you make \$175 an hour, your yearly salary would be \$364,000. 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(\$175) x Weeks worked per year(52) = \$364,000

### \$175 an Hour is How Much a Month?

If you make \$175 an hour, your monthly salary would be \$30,333.33. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage(\$175) x Weeks worked per year(52) / Months per Year(12) = \$30,333.33

### \$175 an Hour is How Much Biweekly?

If you make \$175 an hour, your biweekly salary would be \$14,000.

Hours worked per week (40) x Hourly wage(\$175) x 2 = \$14,000

### \$175 an Hour is How Much a Week?

If you make \$175 an hour, your weekly salary would be \$7,000. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage(\$175) = \$7,000

### \$175 an Hour is How Much a Day?

If you make \$175 an hour, your daily salary would be \$1,400. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage(\$175) = \$1,400

## \$175 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:

\$175 per hour x 40 hours per week x 52 weeks per year = \$364,000

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 \$364,000 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 \$364,000 .

## Part time \$175 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 30 hours per week instead of 40. Here’s how you calculate your new yearly total:

\$175 per hour x 30 hours per week x 52 weeks per year = \$273,000

By working 10 fewer hours per week (30 instead of 40), your annual earnings at \$175 an hour drop from \$364,000 to \$273,000.

That’s a \$91,000 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 \$175 an hour:

Hours Per Week Earnings Per Week Annual Earnings
40 \$7,000 \$364,000
35 \$6,125 \$318,500
30 \$5,250 \$273,000
25 \$4,375 \$227,500
20 \$3,500 \$182,000
15 \$2,625 \$136,500

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.

## \$175 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 \$175 per hour normally, you would make \$262.50 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 \$175 per hour = \$7,000
• 5 overtime hours paid at \$262.50 per hour = \$1,312.50
• Your total one Week earnings =\$7,000 + \$1,312.50 = \$8,312.50

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

\$8,312.50 per week x 52 weeks per year = \$432,250

That’s \$68,250 more than you’d earn working just 40 hours per week at \$175 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 \$175 an hour:

 Overtime hours per work day Hours Per Week Earnings Per Week Annual Earnings 0 40 \$7,000 \$364,000 1 45 \$8,312.50 \$432,250 2 50 \$9,625 \$500,500 3 55 \$10,937.50 \$568,750 4 60 \$12,250 \$637,000 5 65 \$13,562.50 \$705,250 6 70 \$14,875 \$773,500 7 75 \$16,187.50 \$841,750

## How Unpaid Time Off Impacts \$175/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(\$175) x Weeks worked per year(50) = \$350,000 annual salary

With 2 weeks unpaid time off, your annual earnings at \$175/hour would drop by \$14,000.

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 \$7,000 \$364,000 1 51 \$7,000 \$357,000 2 50 \$7,000 \$350,000 3 49 \$7,000 \$343,000 4 48 \$7,000 \$336,000 5 47 \$7,000 \$329,000 6 46 \$7,000 \$322,000 7 45 \$7,000 \$315,000

## Key Takeaways for \$175 Hourly Wage

In summary, here are some key points on annual earnings when making \$175 per hour:

• At 40 hours per week, you’ll earn \$364,000 per year.
• Part-time of 30 hours/week results in \$273,000 annual salary.
• Overtime pay can boost yearly earnings, e.g. \$68,250 extra at 45 hours/week.
• Unpaid time off reduces your total income, around \$14,000 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.

## \$175 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 \$175 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 \$175 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 \$364,000 gross annual pay, your federal tax bracket is 35%.

Your estimated federal tax would be:

\$174,238.25 + (\$364,000 – \$231,251) x 35% = \$220,700.40

So at \$175/hour with \$364,000 gross pay, you would owe about \$220,700.40 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:

\$364,000 gross pay x 3.07% PA tax rate = \$11,174.80 estimated state income tax

So with \$364,000 gross annual income, you would owe around \$11,174.80 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:

\$364,000 gross pay x 2.5% local tax rate = \$9,100 estimated local tax

So with \$364,000 in gross earnings, you may owe around \$9,100 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% + \$164,000 x 0.9% = \$14,308.40

So you can expect to pay about \$14,308.40 in Social Security and Medicare taxes out of your gross \$364,000 in earnings.

### Total Estimated Tax Payments

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

Federal tax: \$220,700.40

State tax: \$11,174.80

Local tax: \$9,100

FICA tax: \$14,308.40

Total Estimated Tax: \$255,283.60

### Calculating Your Take Home Pay

To calculate your annual take home pay at \$175 /hour:

1. Take your gross pay

2. Subtract your estimated total tax payments

\$364,000 gross pay – \$255,283.60 Total Estimated Tax = \$108,716.40 Your Take Home Pay

n summary, if you make \$175 per hour and work full-time, you would take home around \$108,716.40 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 \$175 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make \$175 an hour and work full-time (40 hours per week), your estimated yearly salary would be \$364,000 .

The \$364,000 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 \$175 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

• You are single with \$364,000 gross annual pay, your federal tax bracket is 35 %.
• 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 \$255,283.60 , Your Take Home Pay is \$108,716.40 , Total tax rate is 70.13%.

So next we’ll use 70.13% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

### \$175 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 \$364,000 70.13% \$255,283.60 \$108,716.40 Monthly Salary \$30,333.33 70.13% \$21,273.63 \$9,059.70 BiWeekly Salary \$14,000 70.13% \$9,818.60 \$4,181.40 Weekly Salary \$7,000 70.13% \$4,909.30 \$2,090.70

### \$175  an hour is how much a year after taxes

Here is the adjusted yearly salary after a 70.13% tax reduction:

• Yearly salary before taxes: \$364,000
• Estimated tax rate: 70.13%
• Taxes owed (70.13% * \$364,000 )= \$255,283.60
• Yearly salary after taxes: \$108,716.40
Hourly Wage Hours Worked Per Week Weeks Worked Per Year Total Yearly Salary Estimated Tax Rate Taxes Owed After-Tax Yearly Salary
\$175 40 52 \$364,000 70.13% \$255,283.60 \$108,716.40

### \$175 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 \$175 per hour: \$364,000
• Divided by 12 months per year: \$364,000 / 12 = \$30,333.33 per month

The monthly salary based on a 40 hour work week at \$175 per hour is \$30,333.33 before taxes.

After applying the estimated 70.13% tax rate, the monthly after-tax salary would be:

• Monthly before-tax salary: \$30,333.33
• Estimated tax rate: 70.13%
• Taxes owed (70.13% * \$30,333.33 )= \$21,273.63
• Monthly after-tax salary: \$9,059.70

Monthly Salary Based on \$175 Per Hour

Hourly Wage Yearly Salary Months Per Year Before-Tax Monthly Salary Estimated Tax Rate Taxes Owed After-Tax Monthly Salary
\$175 \$364,000 12 \$30,333.33 70.13% \$21,273.63 \$9,059.70

### \$175 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at \$175 per hour:

• Hourly wage: \$175
• Hours worked per week: 40
• Weeks per biweekly pay period: 2
• \$175 * 40 hours * 2 weeks = \$14,000 biweekly

Applying the 70.13%estimated tax rate:

• Biweekly before-tax salary: \$14,000
• Estimated tax rate: 70.13%
• Taxes owed (70.13% * \$14,000 )= \$9,818.60
• Biweekly after-tax salary: \$4,181.40

Biweekly Salary at \$175 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
\$175 40 2 \$14,000 70.13% \$9,818.60 \$4,181.40

### \$175 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: \$175
• Hours worked per week: 40
• \$175 * 40 hours = \$7,000 per week

Accounting for the estimated 70.13% tax rate:

• Weekly before-tax salary: \$7,000
• Estimated tax rate: 70.13%
• Taxes owed (70.13% * \$7,000 )= \$4,909.30
• Weekly after-tax salary: \$2,090.70

Weekly Salary at \$175 Per Hour

Hourly Wage Hours Worked Per Week Before-Tax Weekly Salary Estimated Tax Rate Taxes Owed After-Tax Weekly Salary
\$175 40 \$7,000 70.13% \$4,909.30 \$2,090.70

### Key Takeaways

• An hourly wage of \$175 per hour equals a yearly salary of \$364,000 before taxes, assuming a 40 hour work week.
• After accounting for an estimated 70.13% tax rate, the yearly after-tax salary is approximately \$108,716.40 .
• On a monthly basis before taxes, \$175 per hour equals \$30,333.33 per month. After estimated taxes, the monthly take-home pay is about \$9,059.70 .
• The before-tax weekly salary at \$175 per hour is \$7,000 . After taxes, the weekly take-home pay is approximately \$2,090.70 .
• For biweekly pay, the pre-tax salary at \$175 per hour is \$14,000 . After estimated taxes, the biweekly take-home pay is around \$4,181.40 .

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 \$175 an hour a good salary?

Earning \$175 per hour equates to an annual salary of \$364,000 a year if working full-time (40 hours per week). This puts earnings in the top 1% of all income earners in the United States. According to the U.S. Census Bureau, the median household income in 2021 was \$70,784. So an income of \$175 an hour is significantly higher than what a typical household earns.

However, to determine if it’s a good salary that allows for a comfortable lifestyle, you have to factor in inflation and the cost of living in your geographic area. With inflation currently high in 2022, the prices for goods and services are rising rapidly. Housing, food, transportation, utilities, and healthcare costs eat up a large chunk of anyone’s budget. High local taxes can also impact take-home pay. So while \$175 an hour sounds like a lot, in expensive metro areas like New York City or San Francisco, it may not go as far as you’d think.

## Jobs that pay \$175 an hour

Very few occupations pay \$175 or more per hour. Jobs that can command this high hourly rate include:

• Surgeons – Surgeons earn an average of \$208 per hour, with some top surgeons earning over \$300 an hour.
• Lawyers – Corporate lawyers and law firm partners take home \$180 to \$380+ per hour.
• Dentists – Experienced dentists in private practice earn approximately \$175 to \$200 per hour.
• Consultants – Self-employed management, IT, and strategy consultants can charge between \$150 to \$300+ per hour.
• Contractors – Some electrical, plumbing, and construction contractors bill out their services for \$150 to \$175 per hour or more.
• Freelancers – Experienced freelance writers, graphic designers, programmers and other skilled independent contractors can charge over \$100 an hour.

The top-paying jobs tend to be specialized roles in medicine, law, business, tech, and skilled trades. The ability to set your own rates as a consultant or freelancer also allows for higher potential wages.

## Can You Live Off \$175 An Hour?

Whether or not you can live comfortably on \$175 an hour depends greatly on your lifestyle expectations, debt load, family size, and where you live. For context, someone earning \$175 an hour and working a full 40 hour work week earns around \$364,000 annually. Here is a breakdown of how far a salary of \$175 an hour can go:

• In lower cost-of-living midwestern and southern towns, \$175 an hour affords a very comfortable lifestyle. You can afford a nice house, new cars, regular vacations, and plenty of disposable income.
• In moderate cost-of-living cities like Austin, TX, Raleigh, NC or Phoenix, AZ, you can potentially live well on this wage, though budgets will be tighter. Tradeoffs around housing, cars, and saving vs spending come into play.
• In very high cost-of-living areas like NYC, San Francisco, LA, Seattle, Miami, etc. \$175 an hour does not get you as far. You’ll need to budget wisely and likely have roommates, drive economy cars, and cut discretionary costs to the bone to make ends meet.
• If you have high debt like student loans or credit cards, have a large family to support, or want an extravagant upper class lifestyle, \$175 an hour may still mean stretching your budget thin, even in average cost of living areas.

So in many parts of the country, it’s possible to live reasonably well on \$175 per hour, though expectations need to be managed. Those living in very high cost-of-living cities may still find budgets quite tight at this wage level.

## The impact of inflation on the value of \$175 an hour

With inflation at its highest level in 40 years, hovering between 7-9% annually, this severely impacts the purchasing power of \$175 an hour. Items like housing, food, gasoline, vehicles, furniture, and appliances are rising sharply in price.

To maintain the same standard of living, your wages need to increase annually at the rate of inflation. Otherwise, you are essentially taking a pay cut as your dollars buy less and less each year.

For example, \$175 an hour in 2022 has the same buying power as approximately \$162 an hour did in 2021. And with inflation expected to remain high for some time, the value of \$175 an hour can be expected to drop. Ongoing raises and pay bumps would be needed to counteract the effects of inflation.

## 5 Ways To Increase Your Hourly Wage

If you find that \$175 an hour still does not allow you to live as comfortably as you’d like, there are steps you can take to increase your hourly pay:

• Ask for a raise – If you are currently earning less than \$175 an hour, negotiate with your employer for higher pay. Point to your experience level, education, superior performance, and market wages as justification.
• Find a higher paying job – Look for open positions that pay over \$175 an hour, either at your current company or a new employer.
• Freelance on the side – Use evenings or weekends to freelance in your field, allowing you to earn well over \$175 per hour on those side projects.
• Start your own business – Launching a consulting firm or other business can allow you to set your own rates higher.
• Move to a lower cost area – Relocating from a high-cost city like San Francisco to an average one like Raleigh can effectively increase your purchasing power and allow you to live better on the same salary.

With strategic career moves, taking on additional work, or reducing living costs, you can amplify the power of an hourly wage of \$175.

## Buying a car on \$175 an hour

Is buying a luxury vehicle affordable if you make \$175 an hour? It depends greatly on the make and model of car you select. Some guidelines on buying a car at this salary level:

• Stick to a purchase price of \$45,000 or under to easily fit a car payment into your budget. This allows you to buy a well-equipped new Toyota, Honda, Subaru or similar at around \$400 a month with normal financing terms.
• European luxury models like BMW, Mercedes, Audi, Jaguar, etc can run \$60k to \$100k+ very quickly. Purchase prices exceeding \$60,000 often mean car payments over \$1,000 a month which are difficult to swing on \$175 an hour, especially with insurance, gas, repairs, etc.
• Exotic supercars like Ferraris, Lamborghinis and Bentleys start at \$200,000+, meaning \$2,500+ monthly payments. Not a wise use of funds on a \$175 an hour salary.
• Buy used for significant savings, buying a car that’s 2-3 years old with 25,000-40,000 miles can mean 40%+ off MSRP. This makes luxury cars much more affordable.
• Leasing is also an option to get luxury for less, with lease payments 30-50% cheaper than financing a purchase.

The best option is to keep your purchase budget modest at \$175 an hour – nice and reliable beats flashy and overpriced. If you want “luxury” buy a lightly used Mercedes, BMW or Lexus. But also beware of repair and maintenance costs.

## Can You Buy a House on \$175 An Hour?

Home ownership is attainable on a \$175 an hour salary depending on the real estate market where you live and the price range of houses you are targeting. Some tips for buying a house on this income level:

• To comfortably fit a mortgage payment into a budget of \$175 an hour, target home prices in the \$350,000 to \$450,000 range with 20% down payment. This keeps mortgage payments around \$1,600 a month including taxes and insurance.
• Expensive coastal markets like California, Massachusetts, Washington DC, and South Florida easily see median home prices from \$600k to over \$1 million. At those prices, it’s tough to swing a mortgage on \$175 an hour unless you have a huge downpayment saved up.
• Markets like Dallas, Atlanta, Phoenix, Charlotte, Nashville all have ample homes under \$400k, making ownership very feasible at this wage.
• Consider relocating to a lower cost-of-living location if home ownership is a priority but you live in a high-priced area. Adjust your target home price based on wages in your local market.
• If staying in an expensive area, buy a smaller condo or townhome to keep mortgage payments affordable on \$175 an hour. Or move further from the city center to find lower prices.

While \$175 an hour income makes home ownership attainable in many areas, you still need to budget wisely and buy based on local home prices and your savings. Setting a max home budget of \$400k or lower is recommended for manageable mortgage payments.

## Example Budget For \$175 Per Hour

Here is a sample monthly budget for someone earning \$175 an hour while working a full-time schedule of 40 hours per week, or around \$364,000 per year:

• Gross Monthly Income – \$30,333
• Taxes – Roughly 30%. \$9,100
• 401(k) Contribution – 10% is \$3,033
• Take-Home Pay – \$18,200
• Mortgage or Rent – \$2,000
• Car Payment – \$400
• Utilities – \$500
• Groceries – \$800
• Eating Out – \$600
• Insurance – \$200
• Cell Phone – \$100
• Cable/Internet – \$150
• Clothing/Personal Care – \$400
• Travel/Entertainment – \$1,000
• Miscellaneous – \$500
• Total Expenses – \$6,650
• Remainder (savings) – \$11,550

This allows for savings of nearly \$11,600 per month while still affording a nice lifestyle – though likely with roommates rather than living solo in major cities. Trading a fancy condo for roommates could allow allocated more to discretionary spending.

Overall this budget demonstrates that \$175 an hour provides for a comfortable, upper middle class lifestyle but likely not an extravagant one in many areas. Strict budgeting in major metros would be required to make ends meet on this salary.

## In Summary

An hourly wage of \$175 equates to an impressive-sounding salary over \$350,000 a year. However, once taxes, the cost of living, and inflation are factored in, this wage may not go as far as you’d imagine in affording luxury living, especially in places like NYC and San Francisco. To live comfortably on \$175 an hour, individuals need to budget wisely, keep housing/car costs reasonable, and watch discretionary spending. Overall, \$175 an hour provides an upper middle class lifestyle in most areas, but isn’t an unlimited budget. Managing expectations and making smart financial choices is important.