| Pre-tax | After tax | |
|---|---|---|
| Hourly | $15.00 | $13.01 |
| Weekly | $600 | $520 |
| Biweekly | $1,200 | $1,041 |
| Monthly | $2,600 | $2,254 |
| Annual | $31,200 | $27,053 |
At a 40-hour week, $15 an hour translates to $31,200 a year before any taxes come out. That puts you just above the federal poverty line for a family of four, but well below the US individual median income of roughly $48,000. The number sounds clean until you factor in rent, state taxes, and the reality that most entry-level hourly jobs at this rate don't include employer-paid health insurance or retirement matching.
How the math works
Hourly-to-annual conversion is straightforward: multiply your hourly rate by the number of hours you work per week, then multiply by 52 weeks. At $15/hr and a standard 40-hour week, that's 15 × 40 × 52 = $31,200. The widget above uses this formula by default, but real life complicates it. If you're part-time at 30 hours a week, you're looking at $23,400. If your employer doesn't offer paid time off and you take two weeks unpaid vacation, you drop to 50 weeks and $30,000. Freelancers and gig workers should track actual hours worked, not scheduled.
What $15/hr actually takes home — the after-tax cut
Federal income tax and FICA (Social Security + Medicare) chip away about 13–15% of your gross at this income level. FICA alone is 7.65%, and federal income tax at $31,200 lands you in the 12% bracket after the standard deduction. That brings your federal take-home to roughly $27,000–$28,000 before state taxes touch it. State tax is the wildcard. California, New York, Oregon, and New Jersey will each take another $600–$1,500 depending on brackets and local rules. Texas, Florida, Nevada, Washington, and Tennessee have no state income tax, so your paycheck stretches further. The difference between living in Austin and living in Portland can be $100–$125 a month in your pocket at this wage.
What kinds of jobs pay $15/hr?
| Job Title | Typical Setting | Why This Rate Fits |
|---|---|---|
| Retail Sales Associate | Big-box stores, mall chains | Entry-level customer-facing role; many states now mandate $15 minimum |
| Fast Food Shift Lead | QSR chains | Step above line cook; manages opening/closing, small team supervision |
| Warehouse Picker/Packer | Amazon, FedEx, third-party logistics | High-volume fulfillment; physical demand justifies the rate |
| Hotel Housekeeper | Mid-tier hotel chains | Room turnover quotas; often includes tips in resort settings |
| Home Health Aide | In-home care agencies | Non-clinical caregiving; certification required in some states |
| Customer Service Representative | Call centers, insurance, telecom | Entry-level phone support; scripted workflows |
| Security Guard | Office buildings, retail, events | Unarmed patrol; licensing varies by state |
| Bank Teller | Regional banks, credit unions | Cash handling, account services; often a stepping stone to lending roles |
| Childcare Worker | Daycare centers, after-school programs | Supervision and activity planning; CPR/First Aid preferred |
| Delivery Driver (non-CDL) | Local courier, food delivery services | Van or personal vehicle; mileage reimbursement varies |
Is $15/hr a good salary?
$15 an hour puts you at $31,200 a year, which is about 65% of the US individual median income and 40% of the median household income. It's livable in low-cost metros — think Tulsa, Memphis, or smaller Midwest cities where a one-bedroom apartment runs $600–$800/month. The 30% rent rule says you should spend no more than $780/month on housing at this wage, which is doable in those markets. In higher-cost cities like Seattle, Austin, or Boston, $780 won't cover a studio, let alone utilities. San Francisco and New York are out of the question unless you have roommates or live far from the city center. At this rate, you're budgeting tightly: one emergency car repair or medical bill can wipe out any savings buffer. It's a starting point, not a destination, and it rarely comes with employer benefits that add hidden value to your total comp.
The 30% rent rule and where $15/hr actually clears it
At $31,200 gross, the 30% guideline puts your max monthly rent at $780. That's realistic in places like Wichita, where median one-bedroom rent hovers around $650, or in Chattanooga and Boise's outer suburbs. You'll find options in smaller college towns and rural metros across the Midwest and South. But try that budget in Denver, where the median one-bedroom is $1,500, or in Miami at $1,800, and you're priced out or stuck with a long commute and roommates. Portland, San Diego, and Washington DC are similarly out of reach. The math doesn't bend: if your city's rent floor is above $780, you're either spending more than 30% of gross (which means less for food, transit, and savings) or you're finding creative living arrangements. When evaluating a job offer, plug the rate into your city's actual rent market, not the national average. The same $15/hr means financial stability in one zip code and paycheck-to-paycheck stress two states over. Understanding where your desired salary lands you geographically is half the battle.
For more rate breakdowns: $16/hr, $17/hr, $18/hr, $19/hr, $20/hr
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Frequently Asked Questions
- How much is $15 an hour annually?
- $15 an hour equals $31,200 per year before taxes, assuming a 40-hour workweek for 52 weeks.
- What is the take-home pay for $15 an hour?
- After federal tax and FICA, expect roughly $27,000–$28,000 per year, though state taxes can lower this by another $600–$1,500 depending on where you live.
- Can you live on $15 an hour?
- It depends on location. In low-cost metros like Tulsa or Memphis, $15/hr can cover rent and basics. In cities like San Francisco or New York, it falls far short of a livable wage.