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

$16.00 an hour is how much a month?

$16/hour, a month
$2,773a month, before tax
$2,410 a month after federal tax and FICA · $33,280 a year
Before tax, a month$33,280 a year ÷ 12$2,773
After tax, a monthfederal income tax and FICA only — no state tax$2,410
A year, before tax16 × 2,080 hours$33,280
A year, after tax13.1% withheld$28,920
Federal income tax−$1,814
Social Security + Medicare7.65% of wages−$2,546
Per hour, after taxagainst $16 on paper$13.9

Notes

  • $16 an hour is $2,773 a month before tax, working forty hours a week. The arithmetic is $33,280 a year divided across twelve equal months.
  • A month is not four weeks of pay. Four weekly cheques is $2,560, but a year holds 52 weeks rather than 48, so the true monthly average is $2,773. Paid fortnightly you get 26 cheques, and twice a year one calendar month contains three of them.
  • After tax it is $2,410 a month. That is federal income tax of $1,814 and FICA of $2,546 over the year — 13.1% 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 $24 for non-exempt workers. Five overtime hours a week adds $6,240 a year — more than a 10% raise, for 12.5% more time.

The short answer

$16.00 an hour is $2,773 a month before tax, at forty hours a week — $2,410 after federal income tax and FICA.

Over a year that is $33,280 gross and $28,920 in hand, with 13.1% withheld.

Where it goes

Line A year
Gross $33,280
Federal income tax −$1,814
Social Security + Medicare −$2,546
Take-home $28,920

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 $2,410 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 $24 for non-exempt workers. Five overtime hours a week is $6,240 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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