After-Tax Income Per Hour – Your Real Earnings
Calculating After-Tax Income Per Hour
The gap between your posted hourly rate and what you actually take home can be surprising. At $20/hour, you keep roughly $17.09. At $40/hour, you keep about $31.42. This page shows the after-tax income per hour across a range of wages to help you understand your true earning rate.
Your after-tax hourly income depends on your total annual earnings. Higher earners lose a larger percentage to taxes because of the progressive federal tax system, but they still take home more in absolute dollars per hour.
At $15/hr, roughly 13% goes to federal + FICA. At $30/hr, about 17%. At $50/hr, about 21%. FICA is a flat 7.65% for all; the variable is your federal income tax rate.
After-Tax Income Per Hour at Common Wages
Single filer, 40 hours/week, 2025 federal tax + FICA. State taxes not included.
| Gross/hr | Gross Annual | Fed+FICA | Net Annual | Net/hr |
|---|---|---|---|---|
| $15.00 | $31,200 | -$4,093 | $27,108 | $13.03 |
| $20.00 | $41,600 | -$6,136 | $35,464 | $17.05 |
| $25.00 | $52,000 | -$8,180 | $43,821 | $21.07 |
| $30.00 | $62,400 | -$10,224 | $52,177 | $25.09 |
| $35.00 | $72,800 | -$13,199 | $59,601 | $28.65 |
| $40.00 | $83,200 | -$16,283 | $66,917 | $32.17 |
| $50.00 | $104,000 | -$22,450 | $81,550 | $39.21 |
Estimates based on 2025 federal tax brackets for a single filer with standard deduction. State taxes not included.
Understanding the Tax Gap Per Hour
Every dollar you earn is split between you and the government. Here is how the split changes at different rates:
$15/hr: You keep ~$13.04 (87%). Government takes ~$1.96.
$25/hr: You keep ~$21.07 (84%). Government takes ~$3.93.
$40/hr: You keep ~$31.42 (79%). Government takes ~$8.58.
The progressive system means higher earners pay more per hour in taxes, but the gap between gross and net grows slowly. Even at $50/hr, you keep nearly 80% of every dollar after federal and FICA taxes.
Frequently Asked Questions
Most workers keep 78-87% of their gross hourly rate after federal and FICA taxes. The percentage decreases slightly as income rises.
Yes, assuming consistent hours. Your annual tax rate determines your after-tax hourly rate, and it is consistent across all paychecks.
OT increases your annual income, which may slightly raise your effective tax rate. But OT always results in more take-home per hour.
Maximize pre-tax deductions (401K, HSA), use all available tax credits, and consider a state with no income tax for the highest net hourly rate.