HourlyTallyWhat each job pays per hour, per year, and in your metro.

$10.50 an hour is how much a month?

$10.5/hour, a month
$1,820a month, before tax
$1,633 a month after federal tax and FICA · $21,840 a year
Before tax, a month$21,840 a year ÷ 12$1,820
After tax, a monthfederal income tax and FICA only — no state tax$1,633
A year, before tax10.5 × 2,080 hours$21,840
A year, after tax10.3% withheld$19,595
Federal income tax−$574
Social Security + Medicare7.65% of wages−$1,671
Per hour, after taxagainst $10.5 on paper$9.42

Notes

  • $10.5 an hour is $1,820 a month before tax, working forty hours a week. The arithmetic is $21,840 a year divided across twelve equal months.
  • A month is not four weeks of pay. Four weekly cheques is $1,680, but a year holds 52 weeks rather than 48, so the true monthly average is $1,820. Paid fortnightly you get 26 cheques, and twice a year one calendar month contains three of them.
  • After tax it is $1,633 a month. That is federal income tax of $574 and FICA of $1,671 over the year — 10.3% of gross, and it assumes no state income tax. Nine states take none; the rest take between about 2% and 9.3% more, so this figure is the ceiling rather than the average.
  • FICA is charged from the first dollar. Social Security takes 6.2% and Medicare 1.45%, with no standard deduction shielding either. Income tax does not start until after the $16,100 standard deduction, which is why the total bite at lower wages is mostly FICA rather than income tax.
  • Overtime is where this number actually moves. Hours past forty in a week are paid at $15.75 for non-exempt workers. Five overtime hours a week adds $4,095 a year — more than a 10% raise, for 12.5% more time.

The short answer

$10.50 an hour is $1,820 a month before tax, at forty hours a week — $1,633 after federal income tax and FICA.

Over a year that is $21,840 gross and $19,595 in hand, with 10.3% withheld.

Where it goes

Line A year
Gross $21,840
Federal income tax −$574
Social Security + Medicare −$1,671
Take-home $19,595

This figure assumes no state income tax

Nine states take none: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. The other 41 take between roughly 2% and 9.3% at the top.

So $1,633 is a ceiling, not an average. The state-by-state figure has its own page.

FICA comes out of the first dollar

Social Security takes 6.2% of wages and Medicare 1.45%, with no standard deduction shielding either. Income tax does not begin until after the $16,100 standard deduction. At lower wages that makes FICA the larger of the two deductions — the opposite of what most people expect.

Overtime moves this more than a raise would

Hours past forty in a week are paid at $15.75 for non-exempt workers. Five overtime hours a week is $4,095 a year — more than a 10% raise, for 12.5% more time.

The threshold is forty hours in a week, not eighty in a fortnight. Fifty hours one week and thirty the next still earns ten hours of overtime, and an employer averaging across the pay period is getting it wrong.

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