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Hourly Wage and Tax Calculator
An hourly rate is hard to budget from until you see the yearly picture. This free hourly wage and tax calculator converts your hourly wage and weekly hours into gross pay, then applies your estimated tax rate to show net take-home pay across weekly, biweekly, monthly and annual periods.
A blended estimate of income and payroll taxes.
How to use
- Enter your hourly wage.
- Enter your usual hours per week.
- Enter your estimated combined tax rate.
- Click Calculate to see gross and net pay for each period.
Worked example
Suppose you earn $25 per hour, work 40 hours a week, work all 52 weeks, and estimate a 20% blended tax rate.
Gross weekly pay is $25 x 40 = $1,000. Gross annual pay is $1,000 x 52 = $52,000. Estimated net annual pay is $52,000 x (1 - 0.20) = $41,600. Monthly, that is about $4,333 gross and $3,467 net.
Frequently asked questions
How do I convert my hourly wage to an annual salary?
Multiply your hourly wage by your weekly hours, then by 52 weeks. For example, $25 per hour at 40 hours a week is $25 x 40 x 52 = $52,000 per year before taxes. Adjust the weeks if you take unpaid time off.
What is a blended tax rate?
It is a single percentage that stands in for all your taxes combined: federal income tax, state tax, Social Security and Medicare. Using one blended rate keeps planning math simple. Your last tax return's total tax divided by gross income is a good starting value.
Should I use 52 weeks in the calculation?
Use 52 if you are paid year-round, which covers most full-time hourly workers including paid holidays. If you take unpaid weeks off, multiply by the weeks you actually get paid instead.
What is the difference between gross and net pay?
Gross pay is your earnings before anything is taken out. Net pay, or take-home pay, is what remains after taxes and deductions like health insurance or retirement contributions. This calculator estimates net using your blended rate.
Does this include overtime?
No. The calculation uses your base hourly rate for all hours. If you regularly earn overtime, add those premium hours separately or raise your average weekly hours to reflect them.
How do I choose the right tax percentage?
Start with last year's effective rate: total tax paid divided by gross income. Higher earners face higher marginal rates, so a raise may deserve a slightly higher percentage. When in doubt, estimate a little high so your budget has a cushion.
I am a 1099 contractor. Does this work for me?
Partly. Contractors pay both the employee and employer halves of Social Security and Medicare, about 15.3% combined, instead of 7.65%. Add roughly 7.65 percentage points to your blended rate, and remember to set aside quarterly estimated payments.