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For many of us, the idea of making $60,000 a year is nothing short of a dream. But what does that really mean? How much is that an hour before taxes? And after taxes? What kind of lifestyle could you afford with this income?

These are all questions we’ll explore in this article as we take a look at the average hourly wage and how it affects your annual income and after-tax income. We’ll also make necessary calculations to figure out how much you can expect to make after taxes each year, along with strategies for budgeting and saving to make the most out of your money. So if you’re curious about how far $60,000 can stretch in today’s economy, keep reading.

$60000 a Year Is How Much an Hour?

Assuming you’re working a standard 40-hour week, you’d be raking in a cool $28.80 per hour.

When working 40 hours per week for 52 weeks a year, you’ll clock in 2,080 hours of work.

Divide that $60,000 salary by the 2,080 hours, and there’s your savvy $28.80 per hour rate.

That’s quite the step up from the federal minimum wage, isn’t it? Of course, your exact hourly rate could vary based on your work hours, but one thing’s for sure, you’ll be making a pretty penny.

But what if you work more or less than the standard work week?

Well, the lowest you could go while still making $60,000 a year is $6.8 per hour—albeit by working every waking (and non-waking) hour of the year, which is, let’s face it, impossible.

On the flip side, working less could bump your hourly wage up to a whopping $57.6. To earn this average wage, you would need to work 20 hours a week, which adds up to a total of 1,040 hours. However, this depends on your work schedule and other factors, such as other obligations you may have.

Earnings Disclaimer

It’s important to note that your earnings will remain constant even if you work fewer hours. Therefore, it’s essential to maximize your productivity during your designated work hours.

How Does 60K a Year Compare?

Let’s get down to the nitty-gritty of your $60,000 salary and see how it measures up. In 2023, the United States national median income is $80,893 – a sweet 3.4% jump from 2022. So, with your $60,000 paycheck, you’re actually earning 25% less than the average Joe. Fear not, though! Remember that median household income represents families, not solo earners.

If your household has more than one income earner and rakes in a collective $80,000, congrats! Your clan is pretty close to the median income party in the good ol’ US of A.

Is $28.80 a Good Hourly Rate?

Now, let’s shift gears and approach this with a more analytical lens. Earning $28.80 per hour results in an after-tax income of approximately $46,000 annually, placing an individual or a small family above the 2023 federal poverty threshold.

However, it is crucial to acknowledge that one’s location and the cost of living therein play a significant role in defining a viable salary. For urban dwellers, particularly in places like New York City, the cost of living tends to be higher than the national average.

Consequently, researching the regional costs and evaluating whether a $60,000 salary truly qualifies as a “livable wage” becomes a necessary and prudent step to take.

Is $60K a Year Worth Your Time? 

While it might not make you a millionaire in NYC, this annual income can comfortably provide for a solid life in cities like Sioux Falls. All it takes is a knack for smart budgeting and cost-effective living arrangements to thrive on a 60K salary truly.

For singles enjoying solo living, $60,000 can be quite a generous budget.

However, if you have a family to provide for, you might place a higher importance on your time since you have to make sure your family’s needs are met. In the end, it is your decision whether earning $60,000 annually is worth the time you put in.

The key to thriving on this income is a spoonful of discipline in handling finances, carefully saving for retirement, and investing in experiences that enrich your life.

Remember: time is a finite resource – every hour spent on the job is an hour you won’t get back. 

So find joy in what you do and make each moment count. Whether you’re a wide-eyed student trading monetary gains for the experience or a devoted family person, always remember that the optimal balance involves valuing both time and money.

How to Make More While Working Less?

Who wouldn’t want to make more money while cutting down on working hours? Guess what – it’s entirely achievable! To unlock this seemingly elusive treasure, you need to utilize your time efficiently and tap into your skills to their maximum potential. Ready to work smarter, not harder? Let’s dive in.

Obtain a High-Paying Position

As there is always room for growth, consider seeking a position offering an increased annual salary. The key to locating these jobs lies in networking within your industry and researching online job postings. An alternative approach is to employ the services of a career coach in discovering opportunities that provide better rewards for your efforts.

All of this can be improved if you focus on achieving high income skills . This includes mastering a particular trade, obtaining a higher degree of education, or investing in yourself so that your salary is more than what you currently make.

Boost Your Earnings with Passive Income

One clever way to maximize your earnings is by reinvesting a part of your salary (from that median wage of $60,000 a year) into opportunities that create passive income. This way, you can watch your bank account grow as you snooze or enjoy that long-awaited vacation without the nagging worry of federal tax.

Excited yet? Take a look at these passive income generators:

  • Rental properties for a steady income stream
  • Peer-to-peer lending, becoming the bank and collecting interest
  • Dividend stocks, reaping the rewards of business growth

Climb Corporate Ladder

Efficient and diligent work within your current job may open the doors for a promotion, increasing your annual earnings beyond median pay and widening your professional responsibilities.

Before taking any major steps, consult with your supervisor to gain insight into the available growth options within the company that may ultimately enhance your yearly salary.

Make Bank with Freelancing

Want more control over your schedule and your finances? Try freelancing! This side hustle lets you make some extra moolah while flexing your skills and giving you the freedom to manage your own hours. Trust us; your work-life balance will thank you.

Intrigued? Check out these freelancing side hustle gigs:

  • Editing, polishing ideas to perfection
  • Web design, making the virtual world your oyster
  • Graphic design, letting your creativity rake in the bucks
  • Bookkeeping, because everyone needs a numbers wizard
  • Writing, because the content is king

Remember, nearly anything you do at your 9-to-5 can also be turned into a lucrative freelance service. So go ahead, give it a shot, and earn more on your own terms.

How Does a $60,000 Annual Salary Break Down?

Biweekly Pay Breakdown

Crunching the numbers for a $ 60,000-a-year salary reveals some exciting insights about your earnings every two weeks. Picture yourself working a full-time job, clocking in 40 hours each week with no overtime. Divide that annual salary of $60,000 by the 26 bi-weekly pay periods, and you’re looking at a cool $2,307.7 in your paycheck.

But hold your horses.

Remember the saying, “Nothing’s certain but death and taxes?”

Well, your take-home pay usually ends up lesser than your biweekly paycheck, all thanks to taxes and other deductions such as income taxes, pre-tax deductions (retirement accounts, health savings bank accounts, etc.), FICA (Social Security and Medicare) taxes, state and local taxes, other miscellaneous deductions required by your employer, and health insurance premiums.

Monthly Pay

Now, what if you’re paid monthly? The anticipation of receiving your paycheck might be a tad longer, but imagine the thrill of seeing higher numbers! On a $60,000 annual salary, you’ll bag a monthly paycheck of a whopping $5,000 before taxes and deductions.

You may get paid time off and federal government holidays, depending on your company. For the average person, this means you’re effectively making more money per hour than your hourly rate implies.

How Much is $28.80 an Hour Annually?

Picture this: you make $28.80 an hour, which translates to roughly $59,904 annually. Not only are you ahead of the curve, but you’ll also be earning more than the national average of $58,563 per year, or $28.16 hourly, according to ZipRecruiter.

However, this number can fluctuate based on the total number of hours you work weekly. For instance, working 50 hours a week would increase your annual earnings to $74,880, while a 60-hour workweek would result in an impressive $89,856.

On the other hand, if you work less than 40 hours a week, your salary tapers off accordingly. A 30-hour workweek corresponds to $44,928 a year, while 20 hours of weekly commitment amounts to $29,952 per annum. Thus, it’s crucial to understand the expected work hours when considering a job that pays $28.8 an hour.

At the end of the day, it’s up to you to make the most out of your earnings and work smarter to increase your salary. Whether it’s freelancing, negotiating a higher wage, or taking on more responsibilities, there are numerous ways to increase your annual salary and take charge.

How Does Vacation Impact My Annual Salary? 

Vacation offers necessary respite and rejuvenation, but it may come at the cost of impacting one’s annual salary. It is crucial to examine the effects of taking time off on one’s finances.

Paid vacation days are part of most employment contracts and would not result in a salary reduction. Conversely, for employees who must take unpaid vacation days, their annual salary may be affected. 

For instance, an individual earning $60,000 annually would receive $2,307.60 bi-weekly. Should they opt for two weeks of unpaid vacation, it would reduce their annual earnings by the same amount. Furthermore, being absent from work may result in missed opportunities for raises or promotions. 

Therefore, the importance of considering how vacation impacts one’s annual salary cannot be understated. A balance between taking time off and focusing on career growth should be achieved to ensure financial stability.


Please note that the salary examples provided are only meant to give you a general idea. Your actual salary will depend on your additional skills, experience, qualifications, and the number of hours you plan to work.

How Much Is $60 000 a Year After Taxes?

Tax implications on a $60,000 salary should be considered thoughtfully, and the actual take-home pay depends on various factors, including your residence. Here, we provide general calculations for residents of tax-free states (for, e.g., Florida) and states with taxes (for, e.g., New York).

For an individual living in Florida, the tax breakdown is as follows:

Annual pre-tax income: $60,000
Deductions: $5,968 federal income tax
$3,300 FICA taxes
After-tax take-home income: $50,732

On the other hand, a New York resident’s tax obligations would be:

Annual pre-tax income: $60,000
Deductions: $5,968 federal income tax, $3,300 FICA taxes
$2,864 New York state tax
After-tax take-home income: $47,868

Notice the significant difference in after-tax income due to state taxes. It’s essential to bear this in mind when calculating the final earnings from your annual salary.

State By State $60,000 a Year Salary After Taxes in 2023

Just like the federal government, each state and territory has its own tax brackets that are calculated in a similar way. 

However, since each state or territory can establish its own marginal tax rates and laws regarding taxable items, the amount of taxes you pay on a $60,000 salary may differ depending on where you live. The following table shows your after-tax salary for the 2023 tax year on a $60,000 salary:

State Average Income
Alabama $46,607.00
Alaska $49,442.00
Arizona $48,061.71
Arkansas $46,263.80
California $47,483.87
Colorado $47,301.23
Connecticut $46,592.00
Delaware $46,678.88
District of Columbia $46,783.75
Florida $50,732.00
Georgia $46,429.00
Hawaii $45,419.90
Idaho $46,841.29
Illinois $46,472.00
Indiana $47,504.00
Iowa $46,378.56
Kansas $46,679.00
Kentucky $46,580.50
Louisiana $47,473.25
Maine $46,484.63
Maryland $46,756.13
Massachusetts $46,442.00
Michigan $46,892.00
Minnesota $46,646.36
Mississippi $46,857.00
Missouri $47,090.06
Montana $46,289.03
Nebraska $46,792.90
Nevada $49,442.00
New Hampshire $49,442.00
New Jersey $47,619.50
New Mexico $47,416.05
New York $47,868.09
North Carolina $47,084.23
North Dakota $48,863.12
Ohio $48,401.64
Oklahoma $47,082.13
Oregon $44,660.75
Pennsylvania $47,600.00
Rhode Island $47,540.75
South Carolina $46,693.40
South Dakota $49,442.00
Tennessee $49,442.00
Texas $49,442.00
Utah $46,510.46
Vermont $47,231.98
Virginia $46,508.25
Washington $49,442.00
West Virginia $46,667.00
Wisconsin $47,194.39
Wyoming $49,442.00

Source: Worlds Salaries

What Types of Jobs Pay $60,000 Per Year?

There are a variety of jobs that pay $60,000 per Year. Here are some examples:

  1. Cargo pilot
  2. Makeup artist
  3. Real estate agent
  4. Dental hygienist
  5. Instrument technician
  6. Insurance agent
  7. Power plant operator
  8. HVAC supervisor
  9. Yoga Instructor
  10. Nuclear medicine technologist
  11. Railroad conductor
  12. Web developer
  13. Sales representative
  14. Claims adjuster
  15. Electrical foreman
  16. Truck driver
  17. Boilermaker
  18. Occupational therapy assistant
  19. MRI technician
  20. Solar installer
  21. Aircraft Mechanic
  22. Physical therapist assistant
  23. Radiation therapist
  24. Nuclear technician
  25. Owner-operator driver

There are numerous job opportunities available that offer an annual salary of $60,000, as shown in the provided list. You have several options to choose from if you desire a salary of this amount. However, note that the list is not exhaustive but gives a fair indication of the job positions that provide this salary.

How To Budget $60,000 a Year?

Cut Unnecessary Monthly Expenses

Regardless of an individual’s yearly income, living within one’s means should be a priority. Analyzing and adjusting budgets is an effective way to achieve this goal. Identifying and eliminating non-essential expenses can help allocate funds toward debt reduction or savings.

Potential areas for adjustments include:

  • Gym memberships
  • Entertainment expenses
  • Subscription services (magazines, music, etc.)
  • Frequency of dining out
  • Cable TV subscriptions
  • Clothing purchases
  • Travel expenditures

There could be more that can be reduced or eliminated to ensure proper budgeting of $60,000 a year.

Save for Retirement Early

The earliest you start saving for retirement, the better. Consider starting an IRA or contributing to a 401(k), especially while your income is still relatively high and you can benefit from the employer match. If your employer offers a 401(k) plan, setting aside just 10% of your annual salary (or $6,000 if you make $60,000 a year) can go a long way toward reaching retirement goals.

Avoid High Car Payments

Owning a set of wheels doesn’t have to equate to draining your wallet. Did you know the average monthly loan payment for a new car in the U.S. is almost $600, which represents more than 10% of a $60,000 annual income?

Keep in mind this figure doesn’t even include insurance, fuel, or maintenance costs. Try out these savvy strategies to stay car payment-free:

  • Opt for a pre-owned vehicle
  • Select a smaller, more economical car
  • Purchase a used car with cash

Avoid Credit Card Debt

Using credit cards to fund your lifestyle is a common mistake that can easily lead to debt. A way to avoid credit card debt is by limiting your credit card usage to expenses that you can pay off fully every month. If you can’t afford to pay your credit card bill each month fully, it’s crucial to reassess your spending habits.

Sample Budget For Individuals Earning $60,000 Per Year

If you want to understand better living on a $60,000 salary, consider comparing it to your monthly expenses. As an example, here’s a budget for someone earning $60k per year, which may be helpful.

Category Monthly Amount
House Rent $2,200
Utilities (electricity, water, etc.) $200
Internet/Cable $100
Transportation $300
Insurance (car, health, etc.) $400
Groceries $400
Dining Out $200
Entertainment $100
Clothing $200
Personal Care $200
Emergency Fund $200
Retirement Savings $500
Total $5,000

Note: This budget prioritizes basic expenses and avoids debt.

Final Thoughts on a 60K a Year Salary

Yearly salaries can be quite the conversation starter. They’re different everywhere you go, and they’re unique to each individual and profession. A 60K salary might be considered modest in certain corners of the world, while in other places, it’s a pretty sweet deal. 

Just imagine living in the bustling metropolis of New York City – you’d need almost twice that amount to make ends meet! But set foot in rural Mississippi, and you’ll find that life on a 60K income can be quite lavish. To live your best life on a $60,000 salary, you only need a bit of financial savvy:

  • Live beneath your means.
  • Keep an eye on your expenditures.
  • Always invest in yourself and your future.

So, what do you think – could you make it on 60K a year? Share your thoughts in the comments below.

The post $60,000 a Year Is How Much an Hour? appeared first on Good Financial Cents®.

About Post Author


I'm the host of the Good Morning Gwinnett show which is all about business and technology. I'm also the editor of the Good Morning Gwinnett website.
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