$16 an Hour Is How Much a Year? After-Tax Pay Breakdown

At a full-time 40-hour week, $16 an hour translates to $33,280 before taxes hit. That's above the federal minimum wage, but below the U.S. individual median income of roughly $48,000. The gap between gross and net pay is where most people underestimate their budget — what looks like $33K turns into closer to $28K–$30K once withholding kicks in, and that swing matters when you're mapping out rent and bills.

How the math works

Take your hourly rate, multiply by 40 hours per week, then by 52 weeks in a year: $16 × 40 × 52 = $33,280. That's the baseline assumption for a standard full-time W-2 role with no unpaid leave. If you're part-time at 30 hours a week, you're looking at $24,960 annually. Freelancers and contractors need to subtract their own unpaid vacation days and slow weeks. The widget defaults to 40 hours and 52 weeks because that's what most job listings assume when they post an hourly rate.

What $16/hr actually takes home — the after-tax cut

Federal income tax at this bracket is 12% on most of your earnings, after the standard deduction shelters the first ~$14,600. FICA (Social Security + Medicare) takes another 7.65% right off the top, no deduction shield. Combined, you're losing roughly $4,000–$5,000 to federal withholding before state tax enters the picture. State tax is the wild card: California, New York, Oregon, and New Jersey will each claim another $1,000–$1,500 annually at this income level, while Texas, Florida, Nevada, Washington, and Tennessee take zero state income tax. That difference — $100–$125 a month — can be the margin between covering a car payment or not.

What kinds of jobs pay $16/hr?

Is $16/hr a good salary?

$33,280 a year sits well below the U.S. individual median of $48,000, but above the poverty line for a single adult. Whether it's "good" depends almost entirely on where you live. The rent rule-of-thumb — 30% of pre-tax income — gives you about $830/month for housing. That works in Tulsa, Wichita, or Jackson, where one-bedrooms run $600–$750. It does not work in Boston, Denver, or Portland, where even studio apartments start at $1,200. If you're splitting rent with a partner or roommate, $16/hr becomes more viable in mid-cost metros. Solo in a high-cost city, you'll be spending 40–50% of gross pay on rent, which leaves little margin for car trouble or medical bills.

Hourly vs. salaried — what the same number buys you differently

A $33,280 salary and $16/hr look identical on paper, but the employment structure changes what you actually get. Hourly roles at this rate rarely come with paid time off — every sick day or vacation day is unpaid, which drops your annual take-home by $128 per day missed. Salaried workers at the same annual figure keep their paycheck during PTO. On the flip side, hourly employees are eligible for overtime (time-and-a-half after 40 hours), which can push annual earnings to $38K–$40K if the employer offers it consistently. Salaried exempt workers don't get overtime, period. Benefits also tilt: salaried roles are more likely to include health insurance and 401(k) match, even at this income level. If you're comparing a $16/hr retail shift lead to a $33K salaried office assistant, the salaried offer is usually worth $2K–$4K more in total comp once you price in PTO and benefits. When evaluating offers, map out the real annual dollars after accounting for unpaid time and overtime potential — headline numbers lie when the employment structure differs.

Sibling rate breakdowns

For more rate breakdowns: $15/hr, $17/hr, $18/hr, $19/hr, $20/hr.

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