# \$28 an Hour is How Much a Year? Before and After Taxes

Converting an hourly wage to potential annual earnings is key for financial planning and setting savings goals. In this article, we’ll break down the yearly income that can be earned from \$28 per hour based on standard full-time and part-time schedules.

We’ll calculate the total pre-tax salary per year that \$28/hour provides. We’ll also look at how overtime can significantly increase annual earnings at this hourly rate. Since unpaid time off is common, we’ll factor in how it reduces actual yearly pay.

In addition, we’ll determine the after-tax income you can expect to take home annually from \$28/hour after deductions. Understanding your net pay is crucial.

We’ll also evaluate whether \$28/hour allows for a comfortable lifestyle in different areas of the country. With high inflation lately, we’ll discuss ways to potentially increase earnings beyond \$28/hour.

Knowing exactly how much salary you could earn per year from \$28 an hour is important knowledge for your financial plans. Let’s take a detailed look at this question.

## Convert \$28 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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### \$28 an Hour is How Much a Year?

If you make \$28 an hour, your yearly salary would be \$58,240. 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(\$28) x Weeks worked per year(52) = \$58,240

### \$28 an Hour is How Much a Month?

If you make \$28 an hour, your monthly salary would be \$4,853.33. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage(\$28) x Weeks worked per year(52) / Months per Year(12) = \$4,853.33

### \$28 an Hour is How Much a Biweekly?

If you make \$28 an hour, your biweekly salary would be \$2,240.

Hours worked per week (40) x Hourly wage(\$28) x 2 = \$2,240

### \$28 an Hour is How Much a Week?

If you make \$28 an hour, your weekly salary would be \$1,120. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage(\$28) = \$1,120

### \$28 an Hour is How Much a Day?

If you make \$28 an hour, your daily salary would be \$224. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage(\$28) = \$224

## \$28 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:

\$28 per hour x 40 hours per week x 52 weeks per year = \$58,240

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 \$58,240 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 \$58,240 .

## Part time \$28 an hour is How Much a Year?

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

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

\$28 per hour x 35 hours per week x 52 weeks per year = \$50,960

By working 5 fewer hours per week (35 instead of 40), your annual earnings at \$28 an hour drop from \$58,240 to \$50,960.

That’s a \$7,280 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 \$28 an hour:

Hours Per Week Earnings Per Week Annual Earnings
40 \$1,120 \$58,240
35 \$980 \$50,960
30 \$840 \$43,680
25 \$700 \$36,400
20 \$560 \$29,120
15 \$420 \$21,840

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.

## \$28 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 \$28 per hour normally, you would make \$42 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 \$28 per hour = \$1,120
• 5 overtime hours paid at \$42 per hour = \$210
• Your total one Week earnings =\$1,120 + \$210 = \$1,330

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

\$1,330 per week x 52 weeks per year = \$69,160

That’s \$10,920 more than you’d earn working just 40 hours per week at \$28 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 \$28 an hour:

 Overtime hours per work day Hours Per Week Earnings Per Week Annual Earnings 0 40 \$1,120 \$58,240 1 45 \$1,330 \$69,160 2 50 \$1,540 \$80,080 3 55 \$1,750 \$91,000 4 60 \$1,960 \$101,920 5 65 \$2,170 \$112,840 6 70 \$2,380 \$123,760 7 75 \$2,590 \$134,680

## How Unpaid Time Off Impacts \$28/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(\$28) x Weeks worked per year(50) = \$56,000 annual salary

With 2 weeks unpaid time off, your annual earnings at \$28/hour would drop by \$2,240.

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 \$1,120 \$58,240 1 51 \$1,120 \$57,120 2 50 \$1,120 \$56,000 3 49 \$1,120 \$54,880 4 48 \$1,120 \$53,760 5 47 \$1,120 \$52,640 6 46 \$1,120 \$51,520 7 45 \$1,120 \$50,400

## Key Takeaways for \$28 Hourly Wage

In summary, here are some key points on annual earnings when making \$28 per hour:

• At 40 hours per week, you’ll earn \$58,240 per year.
• Part-time of 30 hours/week results in \$43,680 annual salary.
• Overtime pay can boost yearly earnings, e.g. \$10,920 extra at 45 hours/week.
• Unpaid time off reduces your total income, around \$2,240 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.

## \$28 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 \$28 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 \$28 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 \$58,240 gross annual pay, your federal tax bracket is 22%.

Your estimated federal tax would be:

\$5,147 + (\$58,240 – \$44,726) x 22% = \$8,120.08

So at \$28/hour with \$58,240 gross pay, you would owe about \$8,120.08 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 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:

\$58,240 gross pay x 3.07% PA tax rate = \$1,787.97 estimated state income tax

So with \$58,240 gross annual income, you would owe around in \$1,787.97 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:

\$58,240 gross pay x 2.5% local tax rate = \$1,456 estimated local tax

So with \$58,240 in gross earnings, you may owe around \$1,456 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:

\$58,240 x 6.2% + \$58,240 x 1.45% = \$4,455.36

So you can expect to pay about \$4,455.36 in Social Security and Medicare taxes out of your gross \$58,240 in earnings.

### Total Estimated Tax Payments

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

Federal tax: \$8,120.08

State tax: \$1,787.97

Local tax: \$1,456

FICA tax: \$4,455.36

Total Estimated Tax: \$15,819.41

### Calculating Your Take Home Pay

To calculate your annual take home pay at \$28 /hour:

2. Subtract your estimated total tax payments

\$58,240 gross pay – \$15,819.41 Total Estimated Tax = \$42,420.59 Your Take Home Pay

n summary, if you make \$28 per hour and work full-time, you would take home around \$42,420.59 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 \$28 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make \$28 an hour and work full-time (40 hours per week), your estimated yearly salary would be \$58,240 .

The \$58,240 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 \$28 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

• You are single with \$58,240 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 \$15,819.41 , Your Take Home Pay is \$42,420.59 , Total tax rate is 27.16%.

So next we’ll use 27.16% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

### \$28 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 \$58,240 27.16% \$15,819.41 \$42,420.59 Monthly Salary \$4,853.33 27.16% \$1,318.28 \$3,535.05 BiWeekly Salary \$2,240 27.16% \$608.44 \$1,631.56 Weekly Salary \$1,120 27.16% \$304.22 \$815.78

### \$28  an hour is how much a year after taxes

Here is the adjusted yearly salary after a 27.16% tax reduction:

• Yearly salary before taxes: \$58,240
• Estimated tax rate: 27.16%
• Taxes owed (27.16% * \$58,240 )= \$15,819.41
• Yearly salary after taxes: \$42,420.59
Hourly Wage Hours Worked Per Week Weeks Worked Per Year Total Yearly Salary Estimated Tax Rate Taxes Owed After-Tax Yearly Salary
\$28 40 52 \$58,240 27.16% \$15,819.41 \$42,420.59

### \$28 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 \$28 per hour: \$58,240
• Divided by 12 months per year: \$58,240 / 12 = \$4,853.33 per month

The monthly salary based on a 40 hour work week at \$28 per hour is \$4,853.33 before taxes.

After applying the estimated 27.16% tax rate, the monthly after-tax salary would be:

• Monthly before-tax salary: \$4,853.33
• Estimated tax rate: 27.16%
• Taxes owed (27.16% * \$4,853.33 )= \$1,318.28
• Monthly after-tax salary: \$3,535.05

Monthly Salary Based on \$28 Per Hour

Hourly Wage Yearly Salary Months Per Year Before-Tax Monthly Salary Estimated Tax Rate Taxes Owed After-Tax Monthly Salary
\$28 \$58,240 12 \$4,853.33 27.16% \$1,318.28 \$3,535.05

### \$28 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at \$28 per hour:

• Hourly wage: \$28
• Hours worked per week: 40
• Weeks per biweekly pay period: 2
• \$28 * 40 hours * 2 weeks = \$2,240 biweekly

Applying the 27.16%estimated tax rate:

• Biweekly before-tax salary: \$2,240
• Estimated tax rate: 27.16%
• Taxes owed (27.16% * \$2,240 )= \$608.44
• Biweekly after-tax salary: \$1,631.56

Biweekly Salary at \$28 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
\$28 40 2 \$2,240 27.16% \$608.44 \$1,631.56

### \$28 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: \$28
• Hours worked per week: 40
• \$28 * 40 hours = \$1,120 per week

Accounting for the estimated 27.16% tax rate:

• Weekly before-tax salary: \$1,120
• Estimated tax rate: 27.16%
• Taxes owed (27.16% * \$1,120 )= \$304.22
• Weekly after-tax salary: \$815.78

Weekly Salary at \$28 Per Hour

Hourly Wage Hours Worked Per Week Before-Tax Weekly Salary Estimated Tax Rate Taxes Owed After-Tax Weekly Salary
\$28 40 \$1,120 27.16% \$304.22 \$815.78

### Key Takeaways

• An hourly wage of \$28 per hour equals a yearly salary of \$58,240 before taxes, assuming a 40 hour work week.
• After accounting for an estimated 27.16% tax rate, the yearly after-tax salary is approximately \$42,420.59 .
• On a monthly basis before taxes, \$28 per hour equals \$4,853.33 per month. After estimated taxes, the monthly take-home pay is about \$3,535.05 .
• The before-tax weekly salary at \$28 per hour is \$1,120 . After taxes, the weekly take-home pay is approximately \$815.78 .
• For biweekly pay, the pre-tax salary at \$28 per hour is \$2,240 . After estimated taxes, the biweekly take-home pay is around \$1,631.56 .

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 \$28 an Hour a Good Salary?

Whether or not \$28 an hour is a good salary depends on your individual circumstances. For some, this hourly rate would be considered relatively high, while for others in high cost-of-living areas, it would be considered quite low.

Some key factors that determine whether \$28/hour is a good wage include:

• Location: In low cost-of-living rural areas, \$28 an hour goes a lot further than in high cost urban centers like San Francisco or New York. The same salary has drastically different purchasing power across different geographies.
• Hours worked: Are you getting 40+ hours per week at that wage? Salaried employees receiving the same rate with annual salaries of around \$60k would be considered low-wage in many parts of the country. The total hours matter.
• Experience level: Earlier in your career, \$28/hour may be a great entry-level wage. Later in your career, expectations and financial obligations tend to increase, making the same hourly wage more challenging.
• Household income: Do you have a working spouse or partner that also contributes to the household? Or are you solely responsible for all bills and expenses? \$28/hour as a sole income is very different from dual income households.
• Cost of living: How expensive is housing, food, utilities, transportation, healthcare, and other living expenses in your area? The higher the costs, the lower \$28/hour goes.

Overall, \$28 an hour for a single, early-career individual living in an affordable area could be considered quite good. However, supporting a family solely on that wage in a high cost metro would be very difficult. As with any salary, you have to consider the full context.

### Jobs that pay \$28 an hour

There are a variety of jobs across many fields and industries where \$28/hour is within the typical salary range:

• Skilled trades: Electricians, plumbers, HVAC technicians, welders, and other skilled tradespeople can earn \$25-\$35/hour, depending on experience and location. Apprentices can start around \$15-\$20.
• Licensed practical or vocational nurses: LPNs or LVNs providing basic nursing care and services typically earn \$22-\$30/hour. Experience, certifications, and shift differentials impact wages.
• Medical and dental assistants: Well-trained assistants in healthcare settings generally make between \$16-\$28/hour depending on credentials and specialties.
• Automotive technicians: Mechanics, technicians, and service advisors at auto repair shops can earn \$15-\$30/hour based on expertise and manufacturer certifications.
• Administrative or office positions: Executive assistants, medical billing coders, paralegals, payroll administrators, and bookkeepers typically make \$18-\$28/hour.
• Machinists: Machinists set up and operate machine shop tools like lathes, grinders, drill presses, and milling machines. Pay averages around \$18-\$30/hour.
• IT support specialists: Those working in IT support roles like computer user support, help desk, and desktop support tend to earn between \$23-\$35/hour.

Overall, skilled trades, healthcare, office/admin, and IT tend to be common fields where hourly pay can range from \$25-\$30 for experienced workers. Geographic location and local cost of living also impact pay rates significantly.

### Can You Live Off \$28 An Hour?

Whether or not it’s feasible to live on \$28 an hour depends heavily on the cost of living in your location and your personal and family financial obligations.

For a single person living in an affordable area, \$28 an hour can provide a moderate standard of living. However, supporting a family on that wage alone, especially in a high-cost metro area, would involve significant trade-offs and budgeting challenges.

Some key factors determining if \$28/hour provides an adequate living include:

• Housing costs: Rent/mortgage payments and utilities are typically the largest monthly expenses. In high-cost real estate markets like Southern California or New York, housing on \$28 an hour would be extremely difficult. More affordable markets in the Midwest and South provide more options. Locating far from city centers can reduce costs.
• Transportation: Owning a reliable paid off vehicle is ideal. Car payments plus insurance, gas and repairs can be costly, especially with long commutes. Proximity to public transport can reduce transportation costs.
• Food/Groceries: Smart grocery shopping, bulk prep, and cooking at home makes eating on a budget easier. Avoiding take-out and pre-packaged foods helps. Higher incomes have more dining out options.
• Healthcare: Quality insurance and health costs are a huge factor. Out of pocket medical expenses can devastate budgets. Preventative care and qualifying for subsidies/public healthcare assistance is essential for lower wage earners.
• Debt/Financial obligations: Student loan, credit card, and other debt payments greatly reduce take-home income. The higher the debt payments, the harder it is to live on \$28/hour. Avoiding high-interest debt is key.

Overall, a frugal single person without major financial obligations could have a modest but doable standard of living on \$28/hour full-time. Families, especially with multiple children, would need a dual income or supplemental public assistance in most areas. Prioritizing housing costs and avoiding high-debt levels allows \$28/hour to go further.

### The impact of inflation on the value of \$28 an hour

With high inflation currently eroding purchasing power, the fixed dollar value of hourly wages like \$28/hour declines each year. Even with periodic raises to match some inflation, wages seldom keep pace fully.

For example, assuming 3% annual inflation, in five years the purchasing power of \$28 will drop over 13% to approximately \$24 in today’s dollars. This means expenses that cost \$1,000 today would cost \$1,130 in five years. That reduced purchasing power impacts those on fixed hourly incomes significantly.

Strategies to counteract inflation on a flat hourly wage like \$28/hour include:

• Negotiating periodic raises with your employer to closely match inflation. Even a 2-3% raise annually makes a difference over time. Cost of living adjustments (COLA) help offset loss of buying power.
• Taking on additional overtime hours or part-time work to boost overall income. Added income now can be saved/invested for future needs.
• Reducing monthly fixed costs wherever possible, like downsizing housing, transportation, and discretionary expenses.
• Investing a portion of income while employed to benefit from compound growth over decades. Stocks, bonds, real estate, and retirement accounts can hedge inflation long-term if money is invested, not spent.

Though impossible to avoid completely, proactive planning and smart budget trade-offs can help counter the effects of inflation on a fixed wage like \$28 an hour over a career.

### 5 Ways To Increase Your Hourly Wage

While \$28 an hour is reasonable pay depending on one’s situation, there are ways to further increase your hourly earnings over time by:

1. Learning new skills – Take courses and training to gain certifications and expertise valued in your industry. Skills like software proficiency, analytics, machine operation, and people management can boost pay.

2. Negotiating raises – Research typical pay at other companies and highlight your contributions when making the case for a meaningful raise with your employer. If denied, be ready to move on.

3. Switching companies – Leverage new skills to land a higher paid role at another organization. Don’t get stuck at one employerforever. New hires typically earn more than loyal employees.

4. Transitioning careers – Pivot into a new field or industry that offers better compensation. Business, tech, healthcare, and finance have lucrative roles.

5. Starting a side-hustle – Launch a small business, build online income sources, monetize a hobby, or freelance on the side to supplement your hourly earnings.

Persistence, hard work, and constantly improving your skillset are key to increasing income. But advocating for your worth and pursuing new opportunities are also essential for boosting your hourly pay over a career.

### Buying a car on \$28 an hour

Buying a car is one of the biggest purchases many consumers make. At \$28 an hour full-time, buying a reliable used car is affordable, but purchasing a lavish new car would be out of reach.

When earning \$28/hour, aim to spend no more than 10-15% of your take-home annual income on a car purchase. With monthly take-home around \$3,500 at that wage, limiting car costs to \$350-\$500 a month is recommended. This supports financing of \$18k-\$28k at average interest rates.

For example, with \$5,000 as a down payment, you could reasonably afford a used Honda Civic under \$20,000 financed for 4 years at 6% interest, with monthly payments around \$340. That fits within the recommended budget at this income level.

However, buying a \$40,000 new SUV with a \$700 monthly car note would severely limit your budget flexibility on a \$28/hour wage. And high-end luxury cars are definitely out of the question.

The key is to stick with reliable used models, modest financing terms, and adequate insurance coverage without excessive add-ons. Controlling the overall car expense is what makes ownership feasible at this income level.

### Can You Buy a House on \$28 An Hour?

While home ownership may be possible in some markets, buying a house solely on a \$28/hour income would be extremely challenging in today’s real estate environment.

Some rough guidelines for affording a home at this income level:

• Plan for a down payment of at least 10%, ideally 20% to avoid private mortgage insurance (PMI). At \$28/hour, saving \$10k+ can take years.
• Target more affordable ZIP codes and locations farther from downtown areas to get lower housing prices. Condos and townhomes tend to be cheaper than detached single-family houses.
• Get pre-approved for a mortgage based on your income, existing debts, and credit score. This determines price limits for lenders.
• Abide by the 28/36 rule – housing expenses no more than 28% of gross monthly income, and total debts including mortgage under 36%.
• Consider FHA loans requiring only 3.5% down payment. But expect to pay mortgage insurance until 20% equity is reached.
• Prepare for closing costs, insurance, repairs, maintenance, utilities, and other homeowner costs beyond just the mortgage.

While specific numbers vary by location, realistic home prices on \$28/hour full-time would probably max out around \$175k nationally, requiring significant saving to afford a down payment. Making a higher dual income household salary greatly improves options.

Owning a home on a single income of \$28/hour demands careful planning, strict budgeting, and moderate expectations. While not necessarily impossible, it’s certainly challenging even with today’s lower interest rates. Renting may be a better financial move at this income level.

### Example Budget For \$28 Per Hour

Here is an example monthly budget for someone earning \$28 per hour full-time, or roughly \$4,000 take-home pay after taxes/deductions:

• Rent: \$1,000 (studio/1-bedroom apartment)
• Utilities: \$200 (electricity, water, cell phone)
• Groceries: \$300
• Car Payment: \$340 (used Honda civic)
• Car Insurance: \$100
• Gas: \$150
• Health Insurance: \$250
• Entertainment/Dining Out: \$200
• Clothing/Personal Care: \$75
• Internet/Cable/Streaming: \$100
• Retirement Savings: \$200 (5% gross income)
• Emergency Fund Savings: \$100

Total Expenses: \$3,015

This allows \$985 left each month in this example for additional variable costs like car repairs, medical co-pays, travel savings, debt payments, etc.

Sticking to an essential expenses budget focused on needs rather than wants is critical for maintaining positive cash flow on this income. Avoiding lifestyle creep as earnings increase helps direct more money toward savings and investments long-term.

This budget would be very tight for a family, especially with child care costs. However, a frugal single person could potentially buy a used car, rent their own apartment, save a bit, and still have some discretionary income while living on \$28 an hour in many areas.

### In Summary

• \$28 per hour equates to around \$60,000 annually assuming full-time hours. In lower cost areas, this can provide a moderate standard of living. But it is low earnings in high-cost metros.
• Skilled trades, healthcare, IT, and office/admin roles commonly pay in the \$25-\$30/hr range for experienced workers. Total hours and benefits impact overall compensation too.
• Housing, transportation, debt payments, and healthcare costs have an enormous impact on whether or not \$28/hour is livable. It is easiest for single individuals without major financial obligations.
• Inflation quickly erodes purchasing power of fixed wages like \$28/hour. Raises, budget cuts, and investing help counteract this.
• Buying used affordable cars is realistic at this income level, but lavish new vehicles should be avoided. Home ownership is challenging but potentially possible with strict budgets.
• Boosting income via skills development, job changes, negotiations, and side hustles provides more flexibility. But living within one’s means is crucial either way.

While not a large salary by any measure, \$28 an hour can support a simple lifestyle in some contexts. But it demands smart budgeting, affordable housing, and avoiding excessive debts and expenses. With reasonable expectations, \$28/hour is certainly a survivable wage.