# \$22 an Hour is How Much a Year? Before and After Taxes

Converting an hourly wage to annual salary is crucial for budgeting and assessing your earnings potential. In this article, we’ll break down the yearly pay for \$22 per hour based on standard full-time and part-time schedules.

We’ll calculate the total pre-tax income that can be earned annually from \$22/hour. We’ll factor in how overtime pay can increase yearly earnings at this rate. We’ll also look at how unpaid time off inevitably reduces actual annual salary.

In addition, we’ll determine the after-tax income you can expect to take home from \$22/hour after tax withholding. Understanding your net yearly pay is vital.

We’ll also evaluate whether \$22/hour provides a decent standard of living and examine fields paying this hourly rate. With high inflation, we’ll discuss ways to increase earnings beyond \$22/hour.

Knowing exactly how much annual salary to expect from \$22 an hour is critical knowledge for financial planning. Let’s explore this important question in detail.

## \$22 an Hour is How Much a Year? Before and After Taxes

When you’re paid by the hour, it can be hard to figure out just how much your yearly income amounts to. After all, the number of hours you work each week and each year can vary quite a bit. But if you’re earning \$22 an hour, there are some simple calculations you can do to estimate your potential annual earnings.

In this article, we’ll walk through the math step-by-step. We’ll look at how to calculate your income based on full-time and part-time work, and account for factors like overtime, holidays, and time off.

Whether you’re just starting a new job, considering a career change, or simply curious what your earning potential is, read on to find out the answer to the question: \$22 an hour is how much a year?

## Convert \$22 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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### \$22 an Hour is How Much a Year?

If you make \$22 an hour, your yearly salary would be \$45,760. 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(\$22) x Weeks worked per year(52) = \$45,760

### \$22 an Hour is How Much a Month?

If you make \$22 an hour, your monthly salary would be \$3,813.33. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage(\$22) x Weeks worked per year(52) / Months per Year(12) = \$3,813.33

### \$22 an Hour is How Much a Biweekly?

If you make \$22 an hour, your biweekly salary would be \$1,760.

Hours worked per week (40) x Hourly wage(\$22) x 2 = \$1,760

### \$22 an Hour is How Much a Week?

If you make \$22 an hour, your weekly salary would be \$880. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage(\$22) = \$880

### \$22 an Hour is How Much a Day?

If you make \$22 an hour, your daily salary would be \$176. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage(\$22) = \$176

## \$22 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:

\$22 per hour x 40 hours per week x 52 weeks per year = \$45,760

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 \$45,760 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 \$45,760 .

## Part time \$22 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 25 hours per week instead of 40. Here’s how you calculate your new yearly total:

\$22 per hour x 25 hours per week x 52 weeks per year = \$28,600

By working 15 fewer hours per week (25 instead of 40), your annual earnings at \$22 an hour drop from \$45,760 to \$28,600.

That’s a \$17,160 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 \$22 an hour:

Hours Per Week Earnings Per Week Annual Earnings
40 \$880 \$45,760
35 \$770 \$40,040
30 \$660 \$34,320
25 \$550 \$28,600
20 \$440 \$22,880
15 \$330 \$17,160

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.

## \$22 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 \$22 per hour normally, you would make \$33 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 \$22 per hour = \$880
• 5 overtime hours paid at \$33 per hour = \$165
• Your total one Week earnings =\$880 + \$165 = \$1,045

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

\$1,045 per week x 52 weeks per year = \$54,340

That’s \$8,580 more than you’d earn working just 40 hours per week at \$22 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 \$22 an hour:

 Overtime hours per work day Hours Per Week Earnings Per Week Annual Earnings 0 40 \$880 \$45,760 1 45 \$1,045 \$54,340 2 50 \$1,210 \$62,920 3 55 \$1,375 \$71,500 4 60 \$1,540 \$80,080 5 65 \$1,705 \$88,660 6 70 \$1,870 \$97,240 7 75 \$2,035 \$105,820

## How Unpaid Time Off Impacts \$22/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(\$22) x Weeks worked per year(50) = \$44,000 annual salary

With 2 weeks unpaid time off, your annual earnings at \$22/hour would drop by \$1,760.

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 \$880 \$45,760 1 51 \$880 \$44,880 2 50 \$880 \$44,000 3 49 \$880 \$43,120 4 48 \$880 \$42,240 5 47 \$880 \$41,360 6 46 \$880 \$40,480 7 45 \$880 \$39,600

## Key Takeaways for \$22 Hourly Wage

In summary, here are some key points on annual earnings when making \$22 per hour:

• At 40 hours per week, you’ll earn \$45,760 per year.
• Part-time of 30 hours/week results in \$34,320 annual salary.
• Overtime pay can boost yearly earnings, e.g. \$8,580 extra at 45 hours/week.
• Unpaid time off reduces your total income, around \$1,760 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.

## \$22 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 \$22 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 \$22 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 \$45,760 gross annual pay, your federal tax bracket is 22%.

Your estimated federal tax would be:

\$5,147 + (\$45,760 – \$44,726) x 22% = \$5,374.48

So at \$22/hour with \$45,760 gross pay, you would owe about \$5,374.48 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:

\$45,760 gross pay x 3.07% PA tax rate = \$1,404.83 estimated state income tax

So with \$45,760 gross annual income, you would owe around in \$1,404.83 Pennsylvania state income tax. Verify your specific state’s income tax 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:

\$45,760 gross pay x 2.5% local tax rate = \$1,144 estimated local tax

So with \$45,760 in gross earnings, you may owe around \$1,144 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:

\$45,760 x 6.2% + \$45,760 x 1.45% = \$3,500.64

So you can expect to pay about \$3,500.64 in Social Security and Medicare taxes out of your gross \$45,760 in earnings.

### Total Estimated Tax Payments

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

Federal tax: \$5,374.48

State tax: \$1,404.83

Local tax: \$1,144

FICA tax: \$3,500.64

Total Estimated Tax: \$11,423.95

### Calculating Your Take Home Pay

To calculate your annual take home pay at \$22 /hour:

2. Subtract your estimated total tax payments

\$45,760 gross pay – \$11,423.95 Total Estimated Tax = \$34,336.05 Your Take Home Pay

n summary, if you make \$22 per hour and work full-time, you would take home around \$34,336.05 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 \$22 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make \$22 an hour and work full-time (40 hours per week), your estimated yearly salary would be \$45,760 .

The \$45,760 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 \$22 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

• You are single with \$45,760 gross annual pay, your federal tax bracket is 22 %.
• 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 \$11,423.95 , Your Take Home Pay is \$34,336.05 , Total tax rate is 24.96%.

So next we’ll use 24.96% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

### \$22 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 \$45,760 24.96% \$11,423.95 \$34,336.05 Monthly Salary \$3,813.33 24.96% \$952 \$2,861.34 BiWeekly Salary \$1,760 24.96% \$439.38 \$1,320.62 Weekly Salary \$880 24.96% \$219.69 \$660.31

### \$22  an hour is how much a year after taxes

Here is the adjusted yearly salary after a 24.96% tax reduction:

• Yearly salary before taxes: \$45,760
• Estimated tax rate: 24.96%
• Taxes owed (24.96% * \$45,760 )= \$11,423.95
• Yearly salary after taxes: \$34,336.05
Hourly Wage Hours Worked Per Week Weeks Worked Per Year Total Yearly Salary Estimated Tax Rate Taxes Owed After-Tax Yearly Salary
\$22 40 52 \$45,760 24.96% \$11,423.95 \$34,336.05

### \$22 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 \$22 per hour: \$45,760
• Divided by 12 months per year: \$45,760 / 12 = \$3,813.33 per month

The monthly salary based on a 40 hour work week at \$22 per hour is \$3,813.33 before taxes.

After applying the estimated 24.96% tax rate, the monthly after-tax salary would be:

• Monthly before-tax salary: \$3,813.33
• Estimated tax rate: 24.96%
• Taxes owed (24.96% * \$3,813.33 )= \$952
• Monthly after-tax salary: \$2,861.34

Monthly Salary Based on \$22 Per Hour

Hourly Wage Yearly Salary Months Per Year Before-Tax Monthly Salary Estimated Tax Rate Taxes Owed After-Tax Monthly Salary
\$22 \$45,760 12 \$3,813.33 24.96% \$952 \$2,861.34

### \$22 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at \$22 per hour:

• Hourly wage: \$22
• Hours worked per week: 40
• Weeks per biweekly pay period: 2
• \$22 * 40 hours * 2 weeks = \$1,760 biweekly

Applying the 24.96%estimated tax rate:

• Biweekly before-tax salary: \$1,760
• Estimated tax rate: 24.96%
• Taxes owed (24.96% * \$1,760 )= \$439.38
• Biweekly after-tax salary: \$1,320.62

Biweekly Salary at \$22 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
\$22 40 2 \$1,760 24.96% \$439.38 \$1,320.62

### \$22 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: \$22
• Hours worked per week: 40
• \$22 * 40 hours = \$880 per week

Accounting for the estimated 24.96% tax rate:

• Weekly before-tax salary: \$880
• Estimated tax rate: 24.96%
• Taxes owed (24.96% * \$880 )= \$219.69
• Weekly after-tax salary: \$660.31

Weekly Salary at \$22 Per Hour

Hourly Wage Hours Worked Per Week Before-Tax Weekly Salary Estimated Tax Rate Taxes Owed After-Tax Weekly Salary
\$22 40 \$880 24.96% \$219.69 \$660.31

### Key Takeaways

• An hourly wage of \$22 per hour equals a yearly salary of \$45,760 before taxes, assuming a 40 hour work week.
• After accounting for an estimated 24.96% tax rate, the yearly after-tax salary is approximately \$34,336.05 .
• On a monthly basis before taxes, \$22 per hour equals \$3,813.33 per month. After estimated taxes, the monthly take-home pay is about \$2,861.34 .
• The before-tax weekly salary at \$22 per hour is \$880 . After taxes, the weekly take-home pay is approximately \$660.31 .
• For biweekly pay, the pre-tax salary at \$22 per hour is \$1,760 . After estimated taxes, the biweekly take-home pay is around \$1,320.62 .

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 \$22 an Hour a Good Salary?

Whether or not \$22 per hour is considered a good wage heavily depends on where you live, household size, lifestyle expectations, and other factors.

For a single individual without children living in a smaller town or city, \$22 an hour can certainly provide a relatively comfortable, middle-class lifestyle. However, for larger metropolitan areas like Los Angeles, New York City, Chicago, Miami, and others, this hourly wage would require some budget-tightening and financial sacrifice.

Let’s look at some data from the MIT Living Wage Calculator:

• New York City: \$22.24 per hour
• Chicago: \$15.86 per hour
• Houston: \$15.93 per hour
• Billings, MT: \$13.64 per hour
• Augusta, GA: \$14.07 per hour

So in more rural and suburban areas, \$22 an hour meets or exceeds estimated living wages. But those figures don’t account for any discretionary spending or savings goals. And for pricier coastal cities, \$22 an hour falls below the minimum comfortable standard, especially for larger households.

For families with two children or more, a sole breadwinner earning \$22 per hour would find it extremely difficult to support all household needs without supplemental income. As household size increases, expenses rise dramatically.

## Jobs that pay \$22 an hour

There are a variety of occupations across diverse industries that pay around \$22 per hour:

• Executive assistants – Support executives and managers by managing calendars, travel, communications, and performing other administrative duties. Most positions require some college or an associate’s degree.
• Electrical technicians – Install, maintain, and repair electrical equipment and systems under the direction of engineers. Typically call for an associate’s degree from a technical or trade school.
• Paralegals – Assist lawyers by performing legal research, preparing documents, communicating with clients, and handling other duties. Most roles require an associate’s degree in paralegal studies.
• Diagnostic medical sonographers – Use specialized equipment to capture images of internal patient tissue to help diagnose medical issues. Requires earning an associate’s degree in sonography.
• Police officers – Protect public safety and enforce laws at the federal, state, or local level. Most departments require a high school diploma plus police academy training.
• Web developers – Create and maintain websites and web applications. Most positions require an associate’s degree or bachelor’s degree in web design, computer science, or a related field.
• Respiratory therapists – Treat patients with breathing, cardiovascular, or lung disorders under physician supervision. Typically need an associate’s degree to qualify.

These examples show the range of jobs paying \$20-\$25 per hour across fields like administration, skilled trades, law enforcement, and healthcare. Required education varies.

## Can You Live Off \$22 An Hour?

Whether you can comfortably live on \$22 an hour largely depends on where you reside and your overall budget. For single adults or dual-income couples without children living in areas with a relatively low cost of living, it is certainly possible to live reasonably well on this salary. However, families with multiple dependents or those living in major metropolitan areas would struggle without supplemental income.

• Housing costs (rent/mortgage, taxes, insurance, utilities)
• Transportation (car payments, insurance, gas, maintenance)
• Food
• Healthcare (insurance premiums, prescriptions, co-pays)
• Debt payments
• Leisure and entertainment
• Miscellaneous expenses

Experts recommend limiting housing to 30% or less of your pretax income. At \$22/hour or ~\$3,733 per month before taxes, that equates to \$1,120 maximum for housing. In many mid-sized and smaller cities, meeting this threshold is realistic. But major metros with inflated housing prices make staying under 30% very difficult.

Overall, strict budgeting and keeping housing, transportation, and debt costs low is critical for living comfortably at this wage level. Having a roommate, dual incomes, and avoiding unnecessary expenses also helps significantly.

## The impact of inflation on the value of \$22 an hour

With inflation recently hitting its highest level in 40 years, the real value and purchasing power of \$22 an hour has decreased substantially. While nominal wage growth has somewhat kept pace over the past couple years, accounting for inflation reveals most workers have lost ground.

In 2021, \$22 an hour provided an annual income of around \$45,760. But with inflation around 8-9% annually, real wages have declined by 6-8 percentage points when factoring in cost of living increases.

This means employees can purchase fewer goods and services with their earnings compared to prior years. From housing and food costs to transportation, healthcare, and education, household expenses have risen considerably.

Unless wages start rising faster than inflation (i.e. 10% raises when inflation is 8%), workers will continue losing ground. This decline in real wages hits middle and lower income households the hardest.

For those earning \$22 an hour or similar wages, maintaining their standard of living and purchasing power is proving much more difficult. This strain on fixed budgets makes thriving on \$22 an hour a challenge.

## 5 Ways To Increase Your Hourly Wage

If you currently earn around \$22 per hour but need more income, here are some options:

• Ask for a raise – Request a wage increase to keep pace with rising costs. Prepare a case outlining your contributions and achievements.
• Find a higher paying job – Seek out a new role that better compensates your skills and experience. Update your resume and browse openings.
• Learn new skills – Take classes or training to gain skills that qualify you for higher-paying jobs. A bootcamp or certification can increase earning potential.
• Work overtime – If possible, take on extra shifts or hours above your typical schedule to earn more.
• Start a side business – Offer freelance services or products like web design, bookkeeping, baked goods etc. to generate supplemental income.
• Adjust tax withholding – Claim fewer allowances to reduce tax withholding and increase your regular take-home pay. (But avoid underpaying to prevent penalties!)

Pursuing a combination of these options can help provide the income boost many need to thrive financially on \$22/hour.

## Buying a car on \$22 an hour

Reliable transportation is essential for most working adults. But cars come with a hefty price tag. Is buying a car realistic if you make \$22 an hour?

The quick answer – yes, but within reason. The average monthly new car payment is now over \$600. For someone earning \$22/hour or ~\$3,733 monthly pre-tax, that accounts for over 16% of gross income – above the 15% recommendation.

Here are some tips for purchasing a car on a \$22/hour budget:

• Buy used – Opt for 2-3 year old certified pre-owned models to save 40-60% versus new. Prioritize reliability and fuel efficiency.
• Secure pre-approval – Talk to banks/credit unions to get pre-approved so you know your budget before shopping. This allows you to focus your search.
• Extend your loan term – Choosing a 60-month or 72-month repayment term instead of 48 months lowers the monthly payment, but avoid terms that are too long.
• Put more down – If you can manage a 20% down payment, this keeps your financed amount and monthly payments lower.
• Find lower insurance – Compare quotes across insurers. Ask about discounts for safe driving records, good credit, bundled policies.
• Leave wiggle room – Make payments comfortably below your maximum budget to accommodate for insurance, gas, repairs.

With reasonable expectations, buying a car on \$22 an hour is achievable. Just be strategic about balancing affordability and reliability.

## Can You Buy a House on \$22 An Hour?

On an hourly wage of \$22, home ownership is possible but challenging in most housing markets. Specific prices and budgets will depend heavily on your location. But this income level can provide a path to ownership with discipline and effort.

Here are some tips for buying a house when earning \$22 per hour:

• Save aggressively for a downpayment – Shoot for 20% down to avoid PMI and get better interest rates. This may take several years.
• Consider USDA, VA loans – These specialized mortgages offer 100% financing and better terms for those meeting eligibility requirements.
• Explore first-time homebuyer programs – Federal, state, and local programs provide grants and loans to assist with down payments and closing costs.
• Focus on cheaper property markets– You’ll have far more buying power in cities with lower home prices and costs of living. Avoid pricier urban areas.
• Lower your standards – Consider older homes or smaller spaces like condos to reduce purchase prices. Location and amenities may need to be sacrificed.
• Get a co-signer – Having a co-signer with good credit can help you qualify for more favorable mortgage terms.
• Consider a part-time job – Additional income from a side gig helps supplement your main wages and affordability.

Home ownership is a big challenge on \$22 an hour, but possible for many with preparation and reasonable expectations. Just be prudent when assessing what you can realistically afford.

## Example Budget For \$22 Per Hour

To determine if you can live comfortably on \$22 an hour, map out an example monthly budget:

### Income

• Monthly Take Home Pay: \$3,200
• Partner’s Income: \$1,800
• Total: \$5,000

### Expenses

• Rent: \$1,100
• Used Car Payment: \$245
• Insurance: \$100
• Gas: \$180
• Groceries: \$550
• Entertainment: \$200
• Utilities: \$195
• Medical: \$150
• Miscellaneous: \$200
• Total: \$3,020

### Remaining:

• \$1,980 left per month

This allows covering all basics plus discretionary spending and savings in many areas. With strict budgeting and reasonable housing, a \$22 hourly wage can support a decent lifestyle, especially for dual income households.

High cost cities, families with children, and sole earners will face greater challenges. But overall, \$22/hour can provide a middle class life in cheaper areas with careful financial choices.

## In Summary

For single adults and dual income couples living in reasonably priced regions, \$22 an hour can provide a comfortable middle-class lifestyle. But families with multiple dependents and those residing in major metros will struggle without supplemental income.

Strict budgeting, limiting unnecessary expenses, and avoiding excessive housing and transportation costs is key. The income erosion caused by high inflation also makes thriving on \$22 per hour more difficult compared to prior years.

However, the wage optimization strategies outlined can help maximize earnings potential. And with reasonable expectations, prudent financial decisions, and extra income sources if possible, a \$22 hourly salary can absolutely support a decent quality of life.