Converting an hourly wage to annual earnings is key for budgeting and financial planning. In this article, we’ll break down the potential yearly income from $23 per hour based on standard fulltime and parttime schedules.
We’ll calculate the total pretax salary that can be earned per year from $23/hour. We’ll also look at how overtime pay can boost annual earnings. Since unpaid time off is common, we’ll factor in how it reduces actual yearly income.
In addition, we’ll determine the aftertax salary you can expect to take home from $23/hour after deductions. Understanding your net pay is crucial.
We’ll also assess if $23/hour provides a livable wage in different areas of the country. With high inflation lately, we’ll discuss ways to increase earnings beyond $23/hour through skills development and education.
Knowing exactly how much you can potentially earn annually from $23 an hour is important for financial planning. Let’s take a detailed look at converting this hourly wage to yearly income.
Table of Contents
Convert $23 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.
$23 an Hour is How Much a Year?
If you make $23 an hour, your yearly salary would be $47,840. 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($23) x Weeks worked per year(52) = $47,840
$23 an Hour is How Much a Month?
If you make $23 an hour, your monthly salary would be $3,986.67. We calculated this number by dividing your annual income by 12 months.
Hours worked per week (40) x Hourly wage($23) x Weeks worked per year(52) / Months per Year(12) = $3,986.67
$23 an Hour is How Much a Biweekly?
If you make $23 an hour, your biweekly salary would be $1,840.
Hours worked per week (40) x Hourly wage($23) x 2 = $1,840
$23 an Hour is How Much a Week?
If you make $23 an hour, your weekly salary would be $920. Calculating based on 5 days per week and 8 hours each day.
Hours worked per week (40) x Hourly wage($23) = $920
$23 an Hour is How Much a Day?
If you make $23 an hour, your daily salary would be $184. We calculated your daily income based on 8 hours per day.
Hours worked per day (8) x Hourly wage($23) = $184
$23 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:
$23 per hour x 40 hours per week x 52 weeks per year = $47,840
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 $47,840 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 $47,840 .
Part time $23 an hour is How Much a Year?
Your annual income changes significantly if you work parttime and not fulltime.
For example, let’s say you work 35 hours per week instead of 40. Here’s how you calculate your new yearly total:
$23 per hour x 35 hours per week x 52 weeks per year = $41,860
By working 5 fewer hours per week (35 instead of 40), your annual earnings at $23 an hour drop from $47,840 to $41,860.
That’s a $5,980 per year difference just by working parttime!
Here’s a table summarizing how your annual earnings change depending on how many hours you work per week at $23 an hour:
Hours Per Week  Earnings Per Week  Annual Earnings 

40  $920  $47,840 
35  $805  $41,860 
30  $690  $35,880 
25  $575  $29,900 
20  $460  $23,920 
15  $345  $17,940 
The more hours per week, the higher your total yearly earnings. But parttime work allows for more life balance if you don’t need the full salary.
$23 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 $23 per hour normally, you would make $34.50 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 $23 per hour = $920
 5 overtime hours paid at $34.50 per hour = $172.50
 Your total one Week earnings =$920 + $172.50 = $1,092.50
If you worked 45 hours each week for 52 weeks, here’s how your annual earnings increase thanks to overtime pay:
$1,092.50 per week x 52 weeks per year = $56,810
That’s $8,970 more than you’d earn working just 40 hours per week at $23 an hour.
Overtime can add up! But also consider taxes and worklife 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 $23 an hour:
Overtime hours per work day  Hours Per Week  Earnings Per Week  Annual Earnings 
0  40  $920  $47,840 
1  45  $1,092.50  $56,810 
2  50  $1,265  $65,780 
3  55  $1,437.50  $74,750 
4  60  $1,610  $83,720 
5  65  $1,782.50  $92,690 
6  70  $1,955  $101,660 
7  75  $2,127.50  $110,630 
How Unpaid Time Off Impacts $23/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($23) x Weeks worked per year(50) = $46,000 annual salary
With 2 weeks unpaid time off, your annual earnings at $23/hour would drop by $1,840.
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  $920  $47,840 
1  51  $920  $46,920 
2  50  $920  $46,000 
3  49  $920  $45,080 
4  48  $920  $44,160 
5  47  $920  $43,240 
6  46  $920  $42,320 
7  45  $920  $41,400 
Key Takeaways for $23 Hourly Wage
In summary, here are some key points on annual earnings when making $23 per hour:
 At 40 hours per week, you’ll earn $47,840 per year.
 Parttime of 30 hours/week results in $35,880 annual salary.
 Overtime pay can boost yearly earnings, e.g. $8,970 extra at 45 hours/week.
 Unpaid time off reduces your total income, around $1,840 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 takehome pay after deductions like taxes.
$23 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 $23 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 $23 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 $47,840 gross annual pay, your federal tax bracket is 22%.
Your estimated federal tax would be:
$5,147 + ($47,840 – $44,726) x 22% = $5,832.08
So at $23/hour with $47,840 gross pay, you would owe about $5,832.08 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 StatebyState Comparison of Income Tax Rates
STATE  TAX RATES  LOWEST AND HIGHEST INCOME BRACKETS 

Alaska  0%  None 
Florida  0%  None 
Nevada  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:
$47,840 gross pay x 3.07% PA tax rate = $1,468.69 estimated state income tax
So with $47,840 gross annual income, you would owe around in $1,468.69 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 13% 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:
$47,840 gross pay x 2.5% local tax rate = $1,196 estimated local tax
So with $47,840 in gross earnings, you may owe around $1,196 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:
$47,840 x 6.2% + $47,840 x 1.45% = $3,659.76
So you can expect to pay about $3,659.76 in Social Security and Medicare taxes out of your gross $47,840 in earnings.
Total Estimated Tax Payments
Based on the examples above, your total estimated tax payments would be:
Federal tax: $5,832.08
State tax: $1,468.69
Local tax: $1,196
FICA tax: $3,659.76
Total Estimated Tax: $12,156.53
Calculating Your Take Home Pay
To calculate your annual take home pay at $23 /hour:
1. Take your gross pay
2. Subtract your estimated total tax payments
$47,840 gross pay – $12,156.53 Total Estimated Tax = $35,683.47 Your Take Home Pay
n summary, if you make $23 per hour and work fulltime, you would take home around $35,683.47 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 $23 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes
If you make $23 an hour and work fulltime (40 hours per week), your estimated yearly salary would be $47,840 .
The $47,840 per year salary does not account for taxes. Federal, state, and local taxes will reduce your takehome pay. The amount withheld depends on your location, filing status, dependents, and other factors.
Just now during our calculation of $23 An Hour Is How Much A Year After Taxes, we assumed the following conditions:
 You are single with $47,840 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 $12,156.53 , Your Take Home Pay is $35,683.47 , Total tax rate is 25.41%.
So next we’ll use 25.41% as the estimated tax rate to calculate your weekly, biweekly, and monthly aftertax income.
$23 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  $47,840  25.41%  $12,156.53  $35,683.47 
Monthly Salary  $3,986.67  25.41%  $1,013.04  $2,973.62 
BiWeekly Salary  $1,840  25.41%  $467.56  $1,372.44 
Weekly Salary  $920  25.41%  $233.78  $686.22 
$23 an hour is how much a year after taxes
Here is the adjusted yearly salary after a 25.41% tax reduction:

 Yearly salary before taxes: $47,840
 Estimated tax rate: 25.41%
 Taxes owed (25.41% * $47,840 )= $12,156.53
 Yearly salary after taxes: $35,683.47
Hourly Wage  Hours Worked Per Week  Weeks Worked Per Year  Total Yearly Salary  Estimated Tax Rate  Taxes Owed  AfterTax Yearly Salary 

$23  40  52  $47,840  25.41%  $12,156.53  $35,683.47 
$23 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 $23 per hour: $47,840
 Divided by 12 months per year: $47,840 / 12 = $3,986.67 per month

The monthly salary based on a 40 hour work week at $23 per hour is $3,986.67 before taxes.
After applying the estimated 25.41% tax rate, the monthly aftertax salary would be:

 Monthly beforetax salary: $3,986.67
 Estimated tax rate: 25.41%
 Taxes owed (25.41% * $3,986.67 )= $1,013.04
 Monthly aftertax salary: $2,973.62
Monthly Salary Based on $23 Per Hour
Hourly Wage  Yearly Salary  Months Per Year  BeforeTax Monthly Salary  Estimated Tax Rate  Taxes Owed  AfterTax Monthly Salary 

$23  $47,840  12  $3,986.67  25.41%  $1,013.04  $2,973.62 
$23 an hour is how much biweekly after taxes
Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at $23 per hour:
 Hourly wage: $23
 Hours worked per week: 40
 Weeks per biweekly pay period: 2
 $23 * 40 hours * 2 weeks = $1,840 biweekly
Applying the 25.41%estimated tax rate:
 Biweekly beforetax salary: $1,840
 Estimated tax rate: 25.41%
 Taxes owed (25.41% * $1,840 )= $467.56
 Biweekly aftertax salary: $1,372.44
Biweekly Salary at $23 Per Hour
Hourly Wage  Hours Worked Per Week  Weeks Per Pay Period  BeforeTax Biweekly Salary  Estimated Tax Rate  Taxes Owed  AfterTax Biweekly Salary 

$23  40  2  $1,840  25.41%  $467.56  $1,372.44 
$23 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: $23
 Hours worked per week: 40
 $23 * 40 hours = $920 per week
Accounting for the estimated 25.41% tax rate:
 Weekly beforetax salary: $920
 Estimated tax rate: 25.41%
 Taxes owed (25.41% * $920 )= $233.78
 Weekly aftertax salary: $686.22
Weekly Salary at $23 Per Hour
Hourly Wage  Hours Worked Per Week  BeforeTax Weekly Salary  Estimated Tax Rate  Taxes Owed  AfterTax Weekly Salary 

$23  40  $920  25.41%  $233.78  $686.22 
Key Takeaways
 An hourly wage of $23 per hour equals a yearly salary of $47,840 before taxes, assuming a 40 hour work week.
 After accounting for an estimated 25.41% tax rate, the yearly aftertax salary is approximately $35,683.47 .
 On a monthly basis before taxes, $23 per hour equals $3,986.67 per month. After estimated taxes, the monthly takehome pay is about $2,973.62 .
 The beforetax weekly salary at $23 per hour is $920 . After taxes, the weekly takehome pay is approximately $686.22 .
 For biweekly pay, the pretax salary at $23 per hour is $1,840 . After estimated taxes, the biweekly takehome pay is around $1,372.44 .
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 takehome 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 fulltime 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 $23 an Hour a Good Salary?
Whether or not $23 per hour is considered a good wage depends heavily on where you live, household size, lifestyle expectations, and other factors.
For a single person without children living in a small or midsized city, $23 an hour can certainly provide a relatively comfortable, middleclass lifestyle. However, for larger metropolitan areas like Los Angeles, New York City, Chicago, Seattle, Miami, and others, this hourly wage would require some budgetary prudence.
Let’s examine some data from the MIT Living Wage Calculator:
 New York City: $24.10 per hour
 Chicago: $17.66 per hour
 Houston: $16.31 per hour
 Billings, MT: $14.64 per hour
 Savannah, GA: $15.35 per hour
So in more rural and suburban areas, $23 an hour exceeds living wage estimates rather comfortably. But for costly urban cities, it falls slightly below the minimum comfortable standard, especially for families.
For larger households with 2+ children, a sole earner making $23 per hour would find it challenging to support all expenses without supplemental income. As family size grows, making ends meet on this salary becomes harder.
Jobs that pay $23 an hour
There are a variety of professional, technical, and skilled trade occupations that typically pay around $23 per hour:
 Registered nurses – Provide medical care and patient education in hospitals, doctor’s offices, nursing homes, and other healthcare facilities. Requires at least an associate’s degree in nursing (ADN).
 Radiologic technologists – Take xrays and administer nonradioactive materials into patients’ bloodstreams for diagnostic imaging. Need an associate’s degree and licensure.
 Electricians – Install, maintain, and repair electrical power, lighting, control, and communication systems. Requires completing an apprenticeship program or trade school training.
 Plumbers – Assemble, install, alter, and repair plumbing systems and fixtures like water heaters, sinks, toilets, tubs. Generally need a technical certificate plus onthejob training.
 Machinists – Use machine tools like lathes, grinders, drill presses to precisely shape metal into finished parts and products. Formal apprenticeships are common.
 Paralegals – Assist lawyers by performing legal research, preparing documents, interviewing clients, etc. Most positions require an associate’s degree in paralegal studies.
 Construction managers – Plan, coordinate, budget and oversee civil engineering construction projects. Require bachelor’s degree in construction management, architecture, or engineering.
These examples show the diversity of skilled trades and technical occupations in the $21 – $25 per hour range. Education credentials vary.
Can You Live Off $23 An Hour?
Whether it’s possible to live comfortably on $23 an hour depends largely on where you live and your overall budget and lifestyle factors. For dual income households without children or single individuals living in reasonably priced regions, this income can absolutely provide a high quality of life. Families with multiple dependents or those residing in major cities may need supplemental income sources.
To determine if $23/hour meets your needs, start by estimating monthly expenses:
 Housing (rent/mortgage, taxes, insurance, utilities)
 Transportation (car payments, insurance, gas, repairs)
 Food
 Healthcare (insurance, prescriptions, copays)
 Debt payments
 Leisure & entertainment
 Miscellaneous expenses
Experts recommend allotting a maximum of 30% of pretax income toward housing. At $23/hour or ~$3,973 per month before taxes, that equates to $1,192 for housing costs. This is very reasonable in most areas outside highcost cities.
Overall, maintaining a detailed budget and keeping housing, transportation, and discretionary costs in check is key to thriving financially on $23 an hour. Avoiding lifestyle inflation as earnings rise helps too. Proper planning and smart decisions make living well on this income very feasible.
The impact of inflation on the value of $23 an hour
With inflation recently hitting its highest level in 40 years, the real value of $23 an hour has decreased substantially. While nominal wage growth has somewhat kept pace over the past couple years, accounting for 8%+ annual inflation reveals most workers have experienced a decline in real wages.
In 2021, $23 an hour provided an annual income of around $47,840. But with high inflation, real wages have dropped by 68 percentage points when adjusted for huge costofliving increases affecting housing, food, gasoline, healthcare, education, and more.
This means employees are able to purchase fewer goods and services with their earnings compared to prior years. Unless wages start rising faster than inflation, this decline in real incomes will persist and economic pressures on middle class households will compound.
For those earning $23 an hour or similar wages, maintaining their standard of living is proving more difficult amidst heightened inflation. Careful budgeting and spending optimization is key.
5 Ways To Increase Your Hourly Wage
If you currently earn around $23 per hour but are hoping to boost your earnings, here are some options:
 Ask for a raise – If you’ve been with your company a while and have a strong performance history, request a wage increase to keep pace with rising costs.
 Find a higher paying job – Browse job boards and professional contacts to uncover new opportunities that better compensate your experience.
 Develop new skills – Take classes, online courses, or training programs to gain skills that qualify you for higherpaying roles.
 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 bookkeeping, web design, repair work, etc. to generate supplemental income.
 Adjust tax withholding – Claim fewer allowances to reduce tax withholding and increase your regular takehome pay. (But avoid penalties!)
Pursuing a combination of these tactics can help maximize your earnings potential above $23 per hour.
Buying a car on $23 an hour
Reliable transportation is an essential need for most working adults. But does earning $23 an hour provide enough income to afford a car?
The short answer – yes, absolutely. The average monthly new car payment currently sits around $600. For someone making $23 an hour or ~$3,973 monthly before taxes, this accounts for just 15% of gross income – aligning with the recommended 15% maximum budget allocation.
Here are some tips for purchasing a vehicle on a $23/hour budget:
 Shop new or used – With a healthy income, you likely can afford payments on a new or used model. Evaluate costs carefully.
 Secure preapproval – Get preapproved first so you know your budget ceiling before shopping around. This allows you to zero in on options in your price range.
 Consider longer terms – Opting for a 60month or 72month loan instead of 48 months lowers payments, but try to avoid terms that are excessively long.
 Make a sizeable down payment – Putting 20% down or more keeps your monthly payments lower and saves on interest costs over the loan duration.
 Investigate lease options – Crunching the numbers sometimes reveals leasing makes more financial sense depending on factors like annual mileage.
With a $23 hourly wage, you have considerable flexibility in choosing a vehicle while keeping payments very affordable.
Can You Buy a House on $23 An Hour?
While not necessarily easy, earning $23 an hour definitely makes home ownership possible in many real estate markets. Specific budgets and prices will vary greatly by location. But this income provides a path to ownership with proper planning and realistic expectations.
Here are some tips for buying a house when making $23 per hour:
 Figure your affordability – Factor in likely mortgage payments, taxes, insurance, maintenance, and homeowner fees given prices in areas you’re considering.
 Save aggressively – Shoot for a 1020% downpayment. Having more equity in the home results in lower payments and less interest paid.
 Explore firsttime buyer programs – Federal, state, and local programs provide grants and loans to assist with down payments and closing costs if you qualify.
 Compare loan types – Weigh the pros and cons of conventional, FHA, VA, and USDA loans to find the best rates and terms based on your situation.
 Prioritize essential features – To keep purchase costs down, consider compromise on nicetohave amenities and focus on necessities.
 Consider a fixerupper – Taking on some renovations and repairs yourself can reduce upfront home buying costs.
While not easy, home ownership is achievable in many markets if you budget wisely and strategically invest in the right property. $23 an hour provides a path to build equity and gain this major asset.
Example Budget For $23 Per Hour
Here is an example monthly budget for an individual earning $23 an hour or $3,973 before taxes:
Income
 Monthly Take Home Pay: $3,000
 Partner’s Take Home Pay: $2,500
 Total: $5,500
Housing
 Mortgage Payment: $1,450
 Home Insurance: $100
 Utilities: $385
Transportation
 Car Payment: $370
 Insurance: $120
 Gas: $190
Other Costs
 Groceries: $550
 Dining Out: $200
 Entertainment: $250
 Medical: $270
 Miscellaneous: $290
Total Expenses: $4,175
Remaining Each Month:
 $1,325
This comfortable budget allows regular retirement and savings contributions plus discretionary spending while building equity in a home. An income of $23 per hour can support living very well in most areas.
Of course, circumstances like highcost cities, additional dependents, and large debts would require adjustments and compromise. But in general, this salary provides a solid middleclass lifestyle.
In Summary
For individuals, dualincome households, and small families living in reasonably priced regions, $23 an hour allows a comfortable middleclass lifestyle with financial stability. But for larger families or those in major metros, expenses may necessitate supplemental income.
The significant inflationary erosion of purchasing power poses challenges that budgeting and spending optimization tactics can help offset. Overall, $23 an hour provides a level of income where not just getting by, but potentially thriving, is an achievable goal for many Americans.