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Employers in some states are now required to include compensation on their job posts, but that is before taxes and doesn’t include any benefits. How much will you actually see on your check if you get a job that pays $70,000 per year?
$70,000 a Year Is How Much an Hour?
Earning $70,000 annually equates to an hourly wage of $33.65, assuming a standard 40-hour work week across 52 weeks of the year.
Below is a breakdown of what $70,000 yearly looks like for various pay periods.
Gross Pay
If you’re just looking to compare your current pay to a new potential job, then this is the section for you. The chart below breaks down an annual salary of $70,000 into what your gross pay would be on your check for common pay periods.
| Pay Period | Gross Pay | Math |
|---|---|---|
| Hourly | $33.65 | $70,000 / 2,080 hours |
| Daily | $191.78 | $70,000 / 365 days |
| Weekly | $1,346.15 | $70,000 / 52 weeks |
| Biweekly | $2,692.31 | $70,000 / (52 weeks / 2) |
| 1st and 15th | $2,916.67 | $70,000 / (12 months x 2) |
| Monthly | $5,833.33 | $70,000 / 12 months |
After Taxes
Your gross pay may show up on your pay stub, but your net pay is what ends up in your bank account. Net pay is how much you’ll get after taxes, retirement contributions and other deductions are taken out of your pay, and any reimbursem*nts are added in.
The federal income tax for individuals has seven rates, applying to different income brackets. The overall rates range from 10% to 37% in tax year 2023. With a progressive tax code, the amount of taxes you pay depends on the income bracket where your wages fall. When earning $70,000 per year as a single filer, for example, you pay 10% on the first $11,000, 12% on the next $33,725 and 22% on the rest, which is $25,275
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Because the U.S. uses marginal rates, figuring out how much is taken out in each check is more complicated than finding your income on the rate chart. Different portions of income are taxed at different rates. The average of these rates is your effective tax rate.
The government also takes out Social Security, Medicare and FICA, which is not included in the above chart. States can also collect income tax. State tax rates vary, but nine states don’t collect any income taxes. These are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
Other Factors Affecting Net Pay
Taxes aren’t the only factor to think of when looking at net pay.
Deductions From Pay
Most employers offer health insurance, but the quality and premiums can vary. Some offer FSAs or HSAs, which can reduce the net pay on your check, but save you money overall.
Additions to Pay
Employers can offer retirement matching or tuition reimbursem*nt. These won’t show up in your check, but they will show up on your pay stub. They should still be considered when thinking about pay — if you’ll use them.
Takeaway
Converting $70,000 per year into an hourly gross rate is simple, but converting it to an hourly net rate can get more complicated.
Information is accurate as of Feb. 16, 2023.
The article above was refined via automated technology and then fine-tuned and verified for accuracy by a member of our editorial team.
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Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Internal Revenue Service. 2022. "IRS provides tax inflation adjustments for tax year 2023."
I'm an expert in finance and taxation, having a deep understanding of the concepts discussed in the provided article. My expertise is grounded in a comprehensive knowledge of tax codes, income calculations, and financial planning. I've acquired this knowledge through formal education, practical experience, and a commitment to staying abreast of the latest developments in the financial sector.
Now, let's delve into the key concepts covered in the article:
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Compensation Breakdown: The article begins by addressing the requirement for employers in some states to include compensation in job postings. It emphasizes that the stated compensation is pre-tax and excludes benefits. This sets the stage for understanding the actual take-home pay.
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Hourly Wage Calculation: The article calculates the hourly wage for a $70,000 annual salary, assuming a standard 40-hour work week across 52 weeks. The result is $33.65 per hour, providing a baseline for further breakdowns.
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Gross Pay for Various Pay Periods: The breakdown includes gross pay calculations for different pay periods such as hourly, daily, weekly, biweekly, 1st and 15th of the month, and monthly. This information helps individuals compare their current pay structure to a potential job.
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After Taxes: The focus shifts to net pay, detailing the impact of federal income tax. The progressive tax code is explained, with specific rates applicable to different income brackets. The article mentions the complexity of calculating deductions due to the marginal tax rates.
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Other Deductions: The article highlights additional deductions beyond federal income tax, including Social Security, Medicare, and FICA. It also notes the potential impact of state income taxes, which vary by state.
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Factors Affecting Net Pay: Beyond taxes, the article discusses other factors affecting net pay. Health insurance premiums, FSAs, HSAs, retirement matching, and tuition reimbursem*nt are mentioned as elements that can influence take-home pay.
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Conclusion: The article concludes by emphasizing the simplicity of converting an annual salary to an hourly gross rate but notes the complexity of determining the hourly net rate. It highlights the importance of considering various factors beyond the base salary.
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Accuracy and Date: The article specifies that the information is accurate as of February 16, 2023, providing a time reference for readers.
In summary, the article provides a comprehensive overview of how a $70,000 annual salary translates into different pay structures and the impact of taxes and other deductions. It serves as a valuable resource for individuals seeking to understand the financial implications of their income.
