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$75 an Hour is How Much a Year? Before and After Taxes

Lucy

With inflation on the rise and the cost of living increasing, an hourly wage of $75 may seem high to some and barely getting by to others. In this article, we will break down exactly how much you can expect to earn per year at $75 an hour based on full-time and part-time work schedules. We will calculate gross pay as well as net income after taxes. You’ll also learn how unpaid time off can impact your actual annual earnings, and whether $75 per hour is considered a good salary and enough to live comfortably on. If you are currently earning $75 an hour or hope to one day, read on to find out what kind of annual, monthly, and weekly salary that equates to before and after taxes. We will also look at jobs that typically pay $75 hourly, examine the impact of inflation, provide tips for increasing your earnings, and analyze sample budgets to determine if buying a house or car is feasible on this wage. The goal is to give you a complete overview of what $75 an hour truly means from a financial perspective.

Table of Contents

Convert $75 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.

$75 an Hour is How Much a Year?

If you make $75 an hour, your yearly salary would be $156,000. We calculate your annual income based on 8 hours per day, 5 days per week and 52 weeks in the year.

Hours worked per week (40) x Hourly wage($75) x Weeks worked per year(52) = $156,000

$75 an Hour is How Much a Month?

If you make $75 an hour, your monthly salary would be $13,000. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage($75) x Weeks worked per year(52) / Months per Year(12) = $13,000

$75 an Hour is How Much a Biweekly?

If you make $75 an hour, your biweekly salary would be $6,000.

Hours worked per week (40) x Hourly wage($75) x 2 = $6,000

$75 an Hour is How Much a Week?

If you make $75 an hour, your weekly salary would be $3,000. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage($75) = $3,000

$75 an Hour is How Much a Day?

If you make $75 an hour, your daily salary would be $600. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage($75) = $600

$75 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:

$75 per hour x 40 hours per week x 52 weeks per year = $156,000

However, this simple calculation makes some assumptions:

You will work 40 hours every week of the year

You will not get any paid time off

Therefore, it represents your earnings if you worked every week of the year, without any vacation, holidays, or sick days.

Accounting for Paid Time Off

The $156,000 base salary does not yet factor in paid time off (PTO). Let’s assume the job provides:

2 weeks (10 days) paid vacation

6 paid holidays

3 paid sick days

This totals 19 paid days off, or nearly 4 weeks of PTO.

Importantly, this paid time off should not be deducted from the annual salary, since you still get paid for those days.

So with 4 weeks PTO, the annual salary would remain $156,000 .

Part time $75 an hour is How Much a Year?

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

For example, let’s say you work 30 hours per week instead of 40. Here’s how you calculate your new yearly total:

$75 per hour x 30 hours per week x 52 weeks per year = $117,000

By working 10 fewer hours per week (30 instead of 40), your annual earnings at $75 an hour drop from $156,000 to $117,000.

That’s a $39,000 per year difference just by working part-time!

Here’s a table summarizing how your annual earnings change depending on how many hours you work per week at $75 an hour:

Hours Per Week

Earnings Per Week

Annual Earnings

40

$3,000

$156,000

35

$2,625

$136,500

30

$2,250

$117,000

25

$1,875

$97,500

20

$1,500

$78,000

15

$1,125

$58,500

The more hours per week, the higher your total yearly earnings. But part-time work allows for more life balance if you don’t need the full salary.

$75 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 $75 per hour normally, you would make $112.50 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 $75 per hour = $3,000

5 overtime hours paid at $112.50 per hour = $562.50

Your total one Week earnings =$3,000 + $562.50 = $3,562.50

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

$3,562.50 per week x 52 weeks per year = $185,250

That’s $29,250 more than you’d earn working just 40 hours per week at $75 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 $75 an hour:

Overtime hours per work day

Hours Per Week

Earnings Per Week

Annual Earnings

0

40

$3,000

$156,000

1

45

$3,562.50

$185,250

2

50

$4,125

$214,500

3

55

$4,687.50

$243,750

4

60

$5,250

$273,000

5

65

$5,812.50

$302,250

6

70

$6,375

$331,500

7

75

$6,937.50

$360,750

How Unpaid Time Off Impacts $75/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($75) x Weeks worked per year(50) = $150,000 annual salary

With 2 weeks unpaid time off, your annual earnings at $75/hour would drop by $6,000.

The table below summarizes how your annual income changes depending on the number of weeks of unpaid leave.

Weeks of unpaid leave

Paid weeks per year

Earnings Per Week

Annual Earnings

0

52

$3,000

$156,000

1

51

$3,000

$153,000

2

50

$3,000

$150,000

3

49

$3,000

$147,000

4

48

$3,000

$144,000

5

47

$3,000

$141,000

6

46

$3,000

$138,000

7

45

$3,000

$135,000

Key Takeaways for $75 Hourly Wage

In summary, here are some key points on annual earnings when making $75 per hour:

At 40 hours per week, you’ll earn $156,000 per year.

Part-time of 30 hours/week results in $117,000 annual salary.

Overtime pay can boost yearly earnings, e.g. $29,250 extra at 45 hours/week.

Unpaid time off reduces your total income, around $6,000 less per 2 weeks off.

Your specific situation and location impacts taxes and PTO.

Knowing your approximate annual salary and factors impacting it makes it easier to budget and plan your finances. The next step is calculating take-home pay after deductions like taxes.

$75 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 $75 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 $75 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:

For example, if you are single with $156,000 gross annual pay, your federal tax bracket is 24%.

Your estimated federal tax would be:

$16,290 + ($156,000 – $95,376) x 24% = $30,839.76

So at $75/hour with $156,000 gross pay, you would owe about $30,839.76 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

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:

$156,000 gross pay x 3.07% PA tax rate = $4,789.20 estimated state income tax

So with $156,000 gross annual income, you would owe around in $4,789.20 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:

$156,000 gross pay x 2.5% local tax rate = $3,900 estimated local tax

So with $156,000 in gross earnings, you may owe around $3,900 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:

$156,000 x 6.2% + $156,000 x 1.45% = $11,934

So you can expect to pay about $11,934 in Social Security and Medicare taxes out of your gross $156,000 in earnings.

Total Estimated Tax Payments

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

Federal tax: $30,839.76

State tax: $4,789.20

Local tax: $3,900

FICA tax: $11,934

Total Estimated Tax: $51,462.96

Calculating Your Take Home Pay

To calculate your annual take home pay at $75 /hour:

1. Take your gross pay

2. Subtract your estimated total tax payments

$156,000 gross pay – $51,462.96 Total Estimated Tax = $104,537.04 Your Take Home Pay

n summary, if you make $75 per hour and work full-time, you would take home around $104,537.04 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 $75 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make $75 an hour and work full-time (40 hours per week), your estimated yearly salary would be $156,000 .

The $156,000 per year salary does not account for taxes. Federal, state, and local taxes will reduce your take-home pay. The amount withheld depends on your location, filing status, dependents, and other factors.

Just now during our calculation of $75 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

You are single with $156,000 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 $51,462.96 , Your Take Home Pay is $104,537.04 , Total tax rate is 32.99%.

So next we’ll use 32.99% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

$75 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

$156,000

32.99%

$51,462.96

$104,537.04

Monthly Salary

$13,000

32.99%

$4,288.58

$8,711.42

BiWeekly Salary

$6,000

32.99%

$1,979.34

$4,020.66

Weekly Salary

$3,000

32.99%

$989.67

$2,010.33

$75 an hour is how much a year after taxes

Here is the adjusted yearly salary after a 32.99% tax reduction:

Yearly salary before taxes: $156,000

Estimated tax rate: 32.99%

Taxes owed (32.99% * $156,000 )= $51,462.96

Yearly salary after taxes: $104,537.04

Hourly Wage

Hours Worked Per Week

Weeks Worked Per Year

Total Yearly Salary

Estimated Tax Rate

Taxes Owed

After-Tax Yearly Salary

$75

40

52

$156,000

32.99%

$51,462.96

$104,537.04

$75 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 $75 per hour: $156,000

Divided by 12 months per year: $156,000 / 12 = $13,000 per month

The monthly salary based on a 40 hour work week at $75 per hour is $13,000 before taxes.

After applying the estimated 32.99% tax rate, the monthly after-tax salary would be:

Monthly before-tax salary: $13,000

Estimated tax rate: 32.99%

Taxes owed (32.99% * $13,000 )= $4,288.58

Monthly after-tax salary: $8,711.42

Monthly Salary Based on $75 Per Hour

Hourly Wage

Yearly Salary

Months Per Year

Before-Tax Monthly Salary

Estimated Tax Rate

Taxes Owed

After-Tax Monthly Salary

$75

$156,000

12

$13,000

32.99%

$4,288.58

$8,711.42

$75 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at $75 per hour:

Hourly wage: $75

Hours worked per week: 40

Weeks per biweekly pay period: 2

$75 * 40 hours * 2 weeks = $6,000 biweekly

Applying the 32.99%estimated tax rate:

Biweekly before-tax salary: $6,000

Estimated tax rate: 32.99%

Taxes owed (32.99% * $6,000 )= $1,979.34

Biweekly after-tax salary: $4,020.66

Biweekly Salary at $75 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

$75

40

2

$6,000

32.99%

$1,979.34

$4,020.66

$75 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: $75

Hours worked per week: 40

$75 * 40 hours = $3,000 per week

Accounting for the estimated 32.99% tax rate:

Weekly before-tax salary: $3,000

Estimated tax rate: 32.99%

Taxes owed (32.99% * $3,000 )= $989.67

Weekly after-tax salary: $2,010.33

Weekly Salary at $75 Per Hour

Hourly Wage

Hours Worked Per Week

Before-Tax Weekly Salary

Estimated Tax Rate

Taxes Owed

After-Tax Weekly Salary

$75

40

$3,000

32.99%

$989.67

$2,010.33

Key Takeaways

An hourly wage of $75 per hour equals a yearly salary of $156,000 before taxes, assuming a 40 hour work week.

After accounting for an estimated 32.99% tax rate, the yearly after-tax salary is approximately $104,537.04 .

On a monthly basis before taxes, $75 per hour equals $13,000 per month. After estimated taxes, the monthly take-home pay is about $8,711.42 .

The before-tax weekly salary at $75 per hour is $3,000 . After taxes, the weekly take-home pay is approximately $2,010.33 .

For biweekly pay, the pre-tax salary at $75 per hour is $6,000 . After estimated taxes, the biweekly take-home pay is around $4,020.66 .

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 $75 an Hour a Good Salary?

For many Americans, $75 an hour would be considered an excellent hourly wage. At $75 an hour, if you worked full-time (40 hours a week) for 52 weeks, your annual salary would be about $156,000 before taxes. That puts you solidly in the top 10-15% of earners in the United States.

However, as we’ll explore in this article, the cost of living varies tremendously across the country. $75 an hour might be a fortune in some rural areas, while in expensive metro areas like New York or San Francisco, it doesn’t necessarily allow you to live in luxury. You have to consider the local cost of housing, transportation, healthcare, and other basics before determining whether $75 an hour is a good wage.

Additionally, inflation affects the real value of $75 per hour. As the cost of goods and services rises over time, $75 buys less than it used to. So we have to evaluate $75 an hour in the context of today’s costs.

Overall, while $75 per hour is certainly an excellent income compared to median wages, it’s not an automatic ticket to Easy Street. Where and how you live makes a big difference.

Jobs that pay $75 an hour

Here are some examples of jobs that typically pay around $75 per hour:

Specialists physicians – Such as anesthesiologists, radiologists, and surgeons. Their median pay hovers in the $75 to $100 per hour range.

Dentists – Experienced general dentists and specialists like orthodontists often earn $70 to $80 per hour or more.

Attorneys – Lawyers with several years of experience at midsize or large firms can hit the $75 an hour mark. Those with expertise in lucrative practice areas may earn far more.

Engineers – Petroleum engineers can earn over $75 an hour, while more common engineering specialties like electrical and mechanical engineering pay $55 to $70 at mid-career levels.

Executives and management – Upper management and executive positions at major corporations often come with six-figure salaries, putting hourly earnings over $75.

Consultants – Self-employed consultants in technology, business, healthcare, and other fields can charge over $75 an hour.

Pilots and air traffic controllers – Experienced pilots and air traffic controllers earn hourly wages surpassing $75 at the middle to senior level.

So in summary, the main types of roles that pay $75 an hour or more are 1) medical and dental specialists, 2) lawyers with several years of experience, 3) engineers and executives in high-paying industries, and 4) self-employed consultants and contractors. These tend to be experienced positions with advanced education and training.

Can You Live Off $75 An Hour?

Whether $75 an hour provides a comfortable living depends largely on where you live and your lifestyle. Let’s look at some scenarios.

For a single person living in an inexpensive Midwest town, $75 an hour can provide a very nice middle-class lifestyle. Average rent for a decent one-bedroom apartment could be $700 or less. After essentials like housing, food and transportation, you’d have plenty left over for savings, entertainment and vacations on $75 an hour.

However, for someone living in a major metro area like New York City or San Francisco, $75 an hour doesn’t go nearly as far. Average rents for a one-bedroom apartment are $4,000 to $5,000 per month in NYC. Even splitting that with a partner or roommate, you’re looking at $2,000 or more just for housing on a salary of $75 an hour. Other costs like food and transportation are higher too. Saving and building wealth long-term would be challenging.

Families with kids also see their money spread thinner. Childcare, healthcare, education and other child-related costs take a big bite out of net pay. A $75 hourly wage with two kids might mean living paycheck to paycheck in high cost-of-living areas.

Mortgage payments can also eat up a large chunk of income. With today’s home prices and mortgage rates, a $75 per hour salary might not be enough to comfortably cover mortgage payments, property taxes, utilities and home repairs in many markets.

So in summary, location, household size and personal lifestyle choices play a big role in determining if $75 an hour is a “good” salary you can live on. You might need closer to six figures to live comfortably in a high cost metro area, especially with kids. But a more modest lifestyle in a lower cost region could work well on $75 an hour.

The impact of inflation on the value of $75 an hour

It’s important to understand that with inflation, $75 an hour today buys significantly less than it did historically. For example:

$75 per hour in 2000 is equivalent to around $120 per hour in 2023 dollars, after adjusting for inflation.

If we go back to 1990, $75 per hour then equates to approximately $170 now – more than double today’s $75.

Looking ahead, without any pay raises, $75 an hour today will be worth just $60 in today’s dollars by 2030 if we assume 3% annual inflation.

The bottom line is inflation erodes the real value of wages over time. $75 an hour might be a solid income right now in 2023 for many Americans. But with the cost of living continuing to increase, $75 will likely buy less and less each year. To maintain your standard of living, you’ll need pay raises that at minimum keep up with inflation.

And if you’re considering a major purchase that requires years of payments – like a home mortgage – keep in mind that inflation will make fixed payments much easier in the early years but tighter as your wage value declines.

5 Ways To Increase Your Hourly Wage

If you’re currently earning less than $75 per hour, here are 5 potential ways to work towards increasing your hourly pay:

Get more education and training – Further degrees, certifications, training programs and workshops can all help qualify you for higher-paying work.

Develop specialized skills – Gain expertise in skills that are well-compensated in the labor market, like software development, financial analysis, medical specialties and more.

Ask for raises and negotiate salary – Don’t be afraid to regularly ask for raises and negotiate pay when taking a new job. Know your worth in the job market.

Switch companies or careers – Changing employers or even switching career fields entirely can often lead to significant pay increases.

Go freelance or start a business – By working for yourself as a consultant or running your own business, you can earn income directly based on your hourly rate.

Constantly improving your skillset, keeping up with market compensation rates, and not being afraid to make bold career moves are the keys to boosting your earnings over time. With determination and perseverance, $75 an hour or more is certainly achievable.

Buying a car on $75 an hour

Buying a car is a major purchase, so it’s wise to think carefully about affordability when earning $75 an hour. Here are some tips:

Aim to spend no more than 10-15% of your net annual income on a car purchase. Gross income of $75 an hour with a 40 hour work week equals $156,000 annually. So aim for a car purchase price of around $15,000 to $23,000.

Get pre-approved for financing based on your income – This helps you know your budget and negotiating leverage when purchasing.

Shop used cars a few years old – Let someone else take the depreciation hit of a brand new car. Well-maintained used cars just 2-3 years old often have lots of life left while costing thousands less.

Focus on reliability and fuel efficiency – Opt for certified pre-owned cars from brands known for quality, like Toyota, Honda and Subaru. Prioritize fuel efficiency to save on gas costs.

Compare insurance costs before choosing a car – Sports cars and luxury brands often cost more to insure. Keep insurance affordability in mind.

Weigh the total costs of owning – Factor in gas, insurance, maintenance and repairs to make the most cost-effective choice possible on your income.

Making wise car purchase decisions based on your $75 an hour salary will help keep transportation costs manageable and avoid excessive auto debt.

Can You Buy a House on $75 An Hour?

On an income of $75 per hour, buying a home is possible depending on location, lifestyle factors, and the current real estate and mortgage rates when you purchase. Here are some tips for affordability:

Traditionally lenders allow homebuyers to spend up to 28% of gross monthly income on mortgage payments, taxes, and insurance. At $75 an hour or $156,000 annually, that’s around $3,640 per month on housing.

However, limiting housing costs to no more than 25% of gross pay is safer. On $75 an hour, aim to keep monthly payments below $3,250.

Run mortgage calculators to see home prices you can realistically afford. $300,000 to $400,000 is likely the sweet spot in many areas based on current rates and your income. Focus on homes listed around or below your maximum budget threshold.

Prioritize lower cost-of-living areas. You’ll get more home for the money in smaller metros and rural locations versus expensive big cities on this salary.

Put at least 10% down to avoid extra PMI fees and get better mortgage rates. On a $300,000 home, that means saving $30,000 for the down payment – doable on $75 an hour income.

Shop around to compare mortgage lenders and lock in the lowest fixed rates available when ready to purchase. Getting pre-approved early makes this easier.

The keys are budgeting based on your income, resisting “house fever”, focusing on affordable areas, and putting enough down. Done right, owning a home on $75 an hour is very achievable for most households.

Example Budget For $75 Per Hour

To better understand whether you can live comfortably on $75 per hour, here is an example monthly budget. This assumes full-time work of about 173 hours per month.

Gross Monthly Income

Hourly wage: $75

Monthly hours: 173

Gross pay: $12,975

Taxes and Deductions

Federal tax: $1,930

Social Security: $804

Medicare: $188

State tax: $300

Health insurance: $400

401k contribution: $650 Total taxes and deductions: $4,272

Net Monthly Income = $8,703

Monthly Expenses

Rent: $1,500

Utilities: $250

Car payment: $350

Car insurance: $100

Gas: $200

Groceries and dining out: $700

Entertainment/self-care: $400

Vacation savings: $200

Clothes/personal care: $150

Internet and cell phone: $150

Miscellaneous: $300 Total expenses: $4,300

Remaining for additional savings or discretionary = $4,403

Based on this budget, a salary of $75 per hour provides a solid middle-class lifestyle with around $4,400 left for additional savings or discretionary spending each month. This is for an individual without kids; families would need a higher income. Overall, this illustrates that in moderate cost-of-living areas, $75 an hour allows comfortable living for individuals and smaller households.

In Summary

In today’s economy, an income of $75 an hour represents a high wage well above national averages. However, the real purchasing power of $75 an hour depends greatly on where you live and your household size and lifestyle. Furthermore, with inflation, $75 per hour buys less over time. For many individuals and families in lower cost areas, $75 an hour provides a nice middle-class standard of living. But in expensive cities with high housing costs, families and larger households may find $75 hourly wages more challenging. The keys are carefully budgeting your income, minimizing housing and transportation costs, and getting periodic pay increases to maintain your standard of living in the long run.