# \$47 an Hour is How Much a Year? Before and After Taxes

With inflation causing prices to rise, an hourly wage of \$47 may be adequate for some but barely scraping by for others. This article will break down exactly how much annual pay you can expect at \$47 per hour based on full-time and part-time schedules. We will calculate gross annual income and net salary after taxes. You’ll also learn how unpaid time off impacts actual yearly earnings, and whether \$47 per hour provides a livable wage. If you earn \$47 hourly now or aspire to in the future, read on to see the annual, monthly, biweekly, and weekly income \$47 per hour equals before and after taxes. We will look at jobs paying \$47 per hour, examine inflation’s impact, provide tips to increase earnings, and evaluate sample budgets to determine if home or car ownership is possible. The goal is to give you a complete financial picture of what \$47 an hour truly means.

## Convert \$47 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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### \$47 an Hour is How Much a Year?

If you make \$47 an hour, your yearly salary would be \$97,760. 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(\$47) x Weeks worked per year(52) = \$97,760

### \$47 an Hour is How Much a Month?

If you make \$47 an hour, your monthly salary would be \$8,146.67. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage(\$47) x Weeks worked per year(52) / Months per Year(12) = \$8,146.67

### \$47 an Hour is How Much a Biweekly?

If you make \$47 an hour, your biweekly salary would be \$3,760.

Hours worked per week (40) x Hourly wage(\$47) x 2 = \$3,760

### \$47 an Hour is How Much a Week?

If you make \$47 an hour, your weekly salary would be \$1,880. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage(\$47) = \$1,880

### \$47 an Hour is How Much a Day?

If you make \$47 an hour, your daily salary would be \$376. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage(\$47) = \$376

## \$47 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:

\$47 per hour x 40 hours per week x 52 weeks per year = \$97,760

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 \$97,760 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 \$97,760 .

## Part time \$47 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:

\$47 per hour x 25 hours per week x 52 weeks per year = \$61,100

By working 15 fewer hours per week (25 instead of 40), your annual earnings at \$47 an hour drop from \$97,760 to \$61,100.

That’s a \$36,660 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 \$47 an hour:

Hours Per Week Earnings Per Week Annual Earnings
40 \$1,880 \$97,760
35 \$1,645 \$85,540
30 \$1,410 \$73,320
25 \$1,175 \$61,100
20 \$940 \$48,880
15 \$705 \$36,660

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.

## \$47 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 \$47 per hour normally, you would make \$70.50 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 \$47 per hour = \$1,880
• 5 overtime hours paid at \$70.50 per hour = \$352.50
• Your total one Week earnings =\$1,880 + \$352.50 = \$2,232.50

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

\$2,232.50 per week x 52 weeks per year = \$116,090

That’s \$18,330 more than you’d earn working just 40 hours per week at \$47 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 \$47 an hour:

 Overtime hours per work day Hours Per Week Earnings Per Week Annual Earnings 0 40 \$1,880 \$97,760 1 45 \$2,232.50 \$116,090 2 50 \$2,585 \$134,420 3 55 \$2,937.50 \$152,750 4 60 \$3,290 \$171,080 5 65 \$3,642.50 \$189,410 6 70 \$3,995 \$207,740 7 75 \$4,347.50 \$226,070

## How Unpaid Time Off Impacts \$47/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(\$47) x Weeks worked per year(50) = \$94,000 annual salary

With 2 weeks unpaid time off, your annual earnings at \$47/hour would drop by \$3,760.

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 \$1,880 \$97,760 1 51 \$1,880 \$95,880 2 50 \$1,880 \$94,000 3 49 \$1,880 \$92,120 4 48 \$1,880 \$90,240 5 47 \$1,880 \$88,360 6 46 \$1,880 \$86,480 7 45 \$1,880 \$84,600

## Key Takeaways for \$47 Hourly Wage

In summary, here are some key points on annual earnings when making \$47 per hour:

• At 40 hours per week, you’ll earn \$97,760 per year.
• Part-time of 30 hours/week results in \$73,320 annual salary.
• Overtime pay can boost yearly earnings, e.g. \$18,330 extra at 45 hours/week.
• Unpaid time off reduces your total income, around \$3,760 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.

## \$47 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 \$47 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 \$47 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 \$97,760 gross annual pay, your federal tax bracket is 24%.

Your estimated federal tax would be:

\$16,290 + (\$97,760 – \$95,376) x 24% = \$16,862.16

So at \$47/hour with \$97,760 gross pay, you would owe about \$16,862.16 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:

\$97,760 gross pay x 3.07% PA tax rate = \$3,001.23 estimated state income tax

So with \$97,760 gross annual income, you would owe around in \$3,001.23 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:

\$97,760 gross pay x 2.5% local tax rate = \$2,444 estimated local tax

So with \$97,760 in gross earnings, you may owe around \$2,444 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:

\$97,760 x 6.2% + \$97,760 x 1.45% = \$7,478.64

So you can expect to pay about \$7,478.64 in Social Security and Medicare taxes out of your gross \$97,760 in earnings.

### Total Estimated Tax Payments

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

Federal tax: \$16,862.16

State tax: \$3,001.23

Local tax: \$2,444

FICA tax: \$7,478.64

Total Estimated Tax: \$29,786.03

### Calculating Your Take Home Pay

To calculate your annual take home pay at \$47 /hour:

2. Subtract your estimated total tax payments

\$97,760 gross pay – \$29,786.03 Total Estimated Tax = \$67,973.97 Your Take Home Pay

n summary, if you make \$47 per hour and work full-time, you would take home around \$67,973.97 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 \$47 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make \$47 an hour and work full-time (40 hours per week), your estimated yearly salary would be \$97,760 .

The \$97,760 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 \$47 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

• You are single with \$97,760 gross annual pay, your federal tax bracket is 24 %.
• 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 \$29,786.03 , Your Take Home Pay is \$67,973.97 , Total tax rate is 30.47%.

So next we’ll use 30.47% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

### \$47 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 \$97,760 30.47% \$29,786.03 \$67,973.97 Monthly Salary \$8,146.67 30.47% \$2,482.17 \$5,664.50 BiWeekly Salary \$3,760 30.47% \$1,145.62 \$2,614.38 Weekly Salary \$1,880 30.47% \$572.81 \$1,307.19

### \$47  an hour is how much a year after taxes

Here is the adjusted yearly salary after a 30.47% tax reduction:

• Yearly salary before taxes: \$97,760
• Estimated tax rate: 30.47%
• Taxes owed (30.47% * \$97,760 )= \$29,786.03
• Yearly salary after taxes: \$67,973.97
Hourly Wage Hours Worked Per Week Weeks Worked Per Year Total Yearly Salary Estimated Tax Rate Taxes Owed After-Tax Yearly Salary
\$47 40 52 \$97,760 30.47% \$29,786.03 \$67,973.97

### \$47 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 \$47 per hour: \$97,760
• Divided by 12 months per year: \$97,760 / 12 = \$8,146.67 per month

The monthly salary based on a 40 hour work week at \$47 per hour is \$8,146.67 before taxes.

After applying the estimated 30.47% tax rate, the monthly after-tax salary would be:

• Monthly before-tax salary: \$8,146.67
• Estimated tax rate: 30.47%
• Taxes owed (30.47% * \$8,146.67 )= \$2,482.17
• Monthly after-tax salary: \$5,664.50

Monthly Salary Based on \$47 Per Hour

Hourly Wage Yearly Salary Months Per Year Before-Tax Monthly Salary Estimated Tax Rate Taxes Owed After-Tax Monthly Salary
\$47 \$97,760 12 \$8,146.67 30.47% \$2,482.17 \$5,664.50

### \$47 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at \$47 per hour:

• Hourly wage: \$47
• Hours worked per week: 40
• Weeks per biweekly pay period: 2
• \$47 * 40 hours * 2 weeks = \$3,760 biweekly

Applying the 30.47%estimated tax rate:

• Biweekly before-tax salary: \$3,760
• Estimated tax rate: 30.47%
• Taxes owed (30.47% * \$3,760 )= \$1,145.62
• Biweekly after-tax salary: \$2,614.38

Biweekly Salary at \$47 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
\$47 40 2 \$3,760 30.47% \$1,145.62 \$2,614.38

### \$47 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: \$47
• Hours worked per week: 40
• \$47 * 40 hours = \$1,880 per week

Accounting for the estimated 30.47% tax rate:

• Weekly before-tax salary: \$1,880
• Estimated tax rate: 30.47%
• Taxes owed (30.47% * \$1,880 )= \$572.81
• Weekly after-tax salary: \$1,307.19

Weekly Salary at \$47 Per Hour

Hourly Wage Hours Worked Per Week Before-Tax Weekly Salary Estimated Tax Rate Taxes Owed After-Tax Weekly Salary
\$47 40 \$1,880 30.47% \$572.81 \$1,307.19

### Key Takeaways

• An hourly wage of \$47 per hour equals a yearly salary of \$97,760 before taxes, assuming a 40 hour work week.
• After accounting for an estimated 30.47% tax rate, the yearly after-tax salary is approximately \$67,973.97 .
• On a monthly basis before taxes, \$47 per hour equals \$8,146.67 per month. After estimated taxes, the monthly take-home pay is about \$5,664.50 .
• The before-tax weekly salary at \$47 per hour is \$1,880 . After taxes, the weekly take-home pay is approximately \$1,307.19 .
• For biweekly pay, the pre-tax salary at \$47 per hour is \$3,760 . After estimated taxes, the biweekly take-home pay is around \$2,614.38 .

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 \$47 an Hour a Good Salary?

An income of \$47 an hour certainly exceeds what many Americans bring home, but does not guarantee economic security by itself. On an annual basis, \$47 per hour equates to \$97,760 per year assuming 40 hour work weeks for all 52 weeks.

That places a \$47 per hour job solidly within the upper half of incomes relative to other U.S. households. The latest Census data shows the median household income was \$67,521 in 2020. So a salary of nearly \$100K exceeds what a typical family earns by over 40%.

However, the purchasing power and lifestyle that \$47 an hour affords heavily depends on where you live and the size of your household. In lower-cost areas of the Midwest and South, \$100K goes reasonably far and ranks well above median regional incomes. But in high-price cities like New York, San Francisco and Honolulu, that same \$100K affords just a middle class life.

Married couples with children also have considerably higher expenses. Thus the salary adequate for a single person to feel well-off might only fund a moderate lifestyle for a 4-person family. Overall, while \$47 an hour is a strong income, it doesn’t automatically guarantee prosperity across diverse circumstances.

## Jobs that Pay \$47 Per Hour

The types of occupations paying hourly rates of approximately \$47 largely fall into three main categories:

• Electricians
• Plumbers and pipefitters
• Power plant operators
• Elevator installers and repairers
• Construction supervisors
• Telecommunications line installers
• Mechanical and electrical engineers

Professional services roles:

• Registered nurses
• Web developers
• Equipment sales representatives
• Technical writers
• Commercial pilots
• Insurance sales agents
• Therapists and counselors

Public sector jobs:

• Police officers
• Firefighters
• Correctional officers
• State and municipal government administration roles

Jobs in these fields generally require vocational certifications, associates degrees, or a bachelor’s degree along with moderate work experience. Many skilled trades and public sector jobs pay wages in the \$45-\$50 per hour range through collective union bargaining as well.

Overall, white collar professional services, specialized technical roles, and public service occupations are the most likely to offer hourly pay approaching \$47 per hour and above.

## Can You Live Off \$47 An Hour?

At face value, an income of \$47 per hour or \$100,000 per year provides a solid, upper middle class lifestyle for individuals or couples without children. However, for larger families living in high-cost metropolitan areas, expenses can burn through \$100K quickly.

Housing costs are typically the largest household expense. Budgeting experts recommend limiting housing to under 30% of your income. At \$47 per hour, or \$8,160 per month, that’s around \$2,450 maximum on rent or mortgage.

That’s enough to afford a median priced home in many mid-sized Midwestern and Southern cities. But in coastal cities like Los Angeles, New York, San Francisco and Washington DC, median homes run \$750,000 and up. At those prices, \$100K incomes may only support modest 2-bedroom homes or apartments.

Other significant costs like childcare, insurance premiums, and student loan payments can also quickly diminish the purchasing power of a \$47 per hour salary. While incomes at this level allow for comfortable lifestyles in many regions, living affordably in high-cost cities generally requires dual incomes of \$100-\$150K.

At \$47 per hour, key factors impacting true livability include:

• Household size – Single vs married with kids
• Location – Midwest vs coastal cities with high housing
• Debt levels – Student loans, credit cards, autos
• Unique expenses – Childcare, elder care, medical bills

Overall, \$47 per hour provides economic security most places for 1-2 person households, but adds constraints as location and family expenses grow. Wise budgeting helps maximize its buying power.

## The Impact of Inflation on \$47 an Hour

As with any wage, the actual purchasing power of \$47 per hour is constantly being eroded by inflation over time. Looking at historical data provides perspective on how today’s \$47 hourly pay stacks up in real terms against prior years.

• In 1990, \$47 per hour would be equivalent to around \$96 per hour in today’s money when adjusted for inflation – more than double its current purchasing power.
• By 2000, inflation had reduced the real value of \$47 per hour to approximately \$70 per hour in 2022 dollars.
• In 2010, \$47 an hour translated to around \$59 per hour in 2022 money after accounting for inflation.
• Thus over the past 30 years, \$47 per hour has lost over 50% of its peak buying power, even as nominal wages have risen.

These impacts stem from rising prices for big-ticket necessities like housing, education and childcare considerably outpacing wage growth for typical workers.

Today’s \$47 per hour income affords a solid standard of living, but likely doesn’t stretch as far as 1990’s version. Continued inflation eats away at earnings over time unless wages stay ahead of rising costs.

## 5 Ways to Increase Your Hourly Wage Above \$47

While \$47 an hour provides a relatively comfortable living standard today, further boosting earning power promotes long-term financial growth. Here are 5 impactful yet achievable steps to potentially lift hourly pay higher:

• Obtain an advanced vocational certification – Specialized licenses and designations in trades like construction management and IT systems engineering can drive pay well above \$50 per hour.
• Transition into a management role – Moving into a supervisory or department leadership position is a proven path to higher salaries. Develop leadership skills to open up management opportunities.
• Start a side business while working – Launching even a modestly successful side venture in your field provides added income and flexibility.
• Switch companies strategically – Changing employers every few years is an effective way to score above-average pay increases over the course of a career.
• Consider higher cost-of-living areas – Large metro areas like San Francisco and New York offer significantly higher salaries for in-demand roles that offset their steep housing costs.

With strategic planning, proactive learning, and calculated career moves, many professionals earning \$47 per hour can push their income into the \$60s and \$70s per hour over time.

## Buying a Car on \$47 Per Hour

The car buying possibilities expand considerably when earning \$47 per hour instead of minimum wage. At this income level, you can realistically afford both lightly used and certain new vehicle models.

With average new car transaction prices approaching \$48,000, purchases in the \$25,000-\$35,000 range generally offer the best value. This affords a wide selection of certified pre-owned SUVs, crossovers, and luxury sedans usually coming off 2-3 year leases.

Well-equipped Asian brand models like the Toyota RAV4, Honda CR-V, Hyundai Tucson, and Subaru Forester are obtainable at these prices alongside entry-level luxury cars from Lexus, Acura, Audi and BMW.

New vehicles in the \$30,000-\$40,000 MSRP range area also within reach – nicely equipped compact SUVs, mid-size sedans, and minivans from Toyota, Ford, Honda and other mass-market brands.

While maxing out a car budget generally isn’t advisable, those earning \$47 per hour can likely absorb \$400-\$600 monthly auto loans while meeting other expenses. Just be sure to compare financing terms across multiple lenders.

With prudent selection, someone earning \$47 per hour can find very suitable and reasonably modern vehicles at mainstream price points. Driving brand new luxury models may remain out of reach, but used versions bring the same amenities and prestige at accessible prices.

## Can You Buy a House on \$47 per Hour?

The ability to afford home ownership on \$47 per hour depends heavily on where you live and your capacity to save for a down payment. But it’s within reach with adequate preparation.

In lower-cost housing markets across the Midwest, South and Southwest, median home prices range from \$250,000 to \$350,000 in most metro areas. At these prices, an income of \$100,000 can support mortgage approvals between \$200,000 to \$280,000 with a 10-20% down payment. This holds true even when factoring in taxes, insurance, and maintenance costs.

But in coastal cities and tech hubs like San Francisco, Seattle, Los Angeles, and Boston, the numbers are far less favorable for buyers earning \$47 per hour. With median home prices between \$800,000 to \$1.3 million, you’d need a substantial down payment or dual incomes to buy.

Attainable home price points for \$47 per hour earners:

• Low cost areas – Up to \$350,000
• Mid cost areas – \$250,000 to \$450,000
• High cost areas – Under \$700,000 with dual income

While buying is feasible on \$47 per hour in many markets, amassing the down payment while paying current rent poses the biggest hurdle. Being strategic with savings goals and down payment assistance programs is key.

## Example Budget for \$47 Per Hour

To better understand the lifestyle afforded by \$47 per hour, here is an example monthly budget for a hypothetical single employee without kids living in Denver, CO.

Note: Taxes are not deducted for simplicity.

Gross Monthly Income

• \$47 per hour x 40 hours per week x 4 weeks = \$7,520

Expenses:

• Rent – \$1,500 (1-bedroom apartment)
• Utilities – \$200
• Groceries – \$450
• Car payment – \$400
• Car insurance – \$100
• Gas – \$150
• Cell phone – \$80
• High speed internet – \$60
• Health insurance – \$350
• Entertainment – \$200
• Dining out – \$250
• Clothing – \$150
• 401k retirement contribution – \$500
• Emergency fund savings – \$300

Total Expenses = \$4,690

Remaining Income After Expenses = \$2,830

This leaves \$2,830 per month that could be used for additional savings goals, hobbies, travel, or simply discretionary spending.

While not a lavish lifestyle, this budget illustrates the comfortable position of singles earning \$47 per hour. There is substantial room for both daily expenses and future financial needs after essentials are covered.

For families or those living in high-cost cities, expenses take a much bigger bite. But the earnings flexibility remains well beyond those subsisting paycheck to paycheck.

## In Summary

While many view a \$47 per hour wage as squarely upper middle class, its actual buying power depends greatly on individual circumstances. Singles and couples without children can live quite comfortably in most metro areas on \$100K per year.

However, as household sizes grow and housing, childcare, and education costs enter the mix, expenses begin outpacing earnings more significantly. Those earning \$47 per hour can afford homes in more affordable regions, but ownership remains out of reach in high-cost cities.

With prudent saving and careful budgeting, a \$47 hourly wage provides economic security for those in moderate-cost areas and lifestyles. But further career development into higher income brackets may be necessary to attain wealth and prosperity over the long-run, especially as inflation rises.