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Is $25 An Hour Good? How Much Is It A Year? (Explained!)

Jamey Muller
Updated: December 24, 2022
7 min read

To understand if working for $25 an hour in America is a good wage, there are various factors that need to be taken into consideration. That being said, let’s investigate how much making $25 an hour equals to a year, and if it’s a fine wage to live on in America. 

Is 25 Dollars An Hour Good?

To establish if earning $25 is a good wage, let's start by considering the federal minimum wage, which hasn't changed in America since 2009, standing at $7.25 per hour, despite calls for it to be raised to $15. 

For a US State, Washington holds the highest minimum wage of $14.49 an hour, and this will rise to $15.74 per hour, effective Jan 1st, 2023. In contrast, some States haven’t adopted State minimum wage, such as Mississippi and South Carolina, leaving workers earning a minimum of $7.25 per hour. To take things further, the States of Georgia and Wyoming have a minimum wage set at $5.15 per hour.

With this info alone, $25 an hour seems like a good wage for living in Washington, and a great wage for living in Georgia and Wyoming, it's not as clear cut as this, as when determining if $25 an hour is a good wage, we also need to look at cost of living. 

In 2020 the average cost of living was significantly higher in Washington at $65,000, when compared to Wyoming, at $42,000, so earning $25 per hour now changes from being considered a great wage in Wyoming, to a good wage, and from a good wage in Washington, to a below-average wage.

What Is Considered A Good Salary In The US?

For a general answer, then we can look at the National average wage in America. According to wage estimates from the May 2021 U.S. BUREAU OF LABOR STATISTICS, the 2022 annual mean wage in America during the second quarter of 2022 was 5.2% higher than the year before. From working full time, assumed at 52 weeks a year, and for 2,080 hours, this worked out to be $1,041 per week and $54,132 per year. Therefore, on paper, a salary above this amount could be deemed a ‘good wage'.

Yet, when determining if a wage is good or not, there are additional factors to consider. These include the cost of living, which greatly varies depending on which State you live in, and this can be narrowed down further to specific regions, such as living in the inland city or coastal, seaside area, and also if you have children to support, what car you drive, amongst other factors. 

Overall, determining a good wage is dependent on your individual needs, and if your salary supports your lifestyle, it can be otherwise defined as comfortable, or a good salary. 

Can You Live Off 25 Dollars An Hour?

Many people are living off of the federal minimum wage of $7.25 in America, and also wages set by States, Counties, and Cities, earning considerably less than $25.00 an hour. In respect to this, then earning $25.00 an hour can be deemed perfectly fine to live off of anywhere in the US. 

Yet this doesn't account for additional factors such as your financial needs. Also, places like New York, California, and other built-up areas will require a higher wage to sustain an average lifestyle. 

For instance, the district of Washington DC recently increased the minimum wage to $16.10 per hour for non-tipped employees, making this the highest minimum wage within US land. However, it's the 5th most expensive place to live in the US, so earning $25.00 an hour isn't going to get you as far as earning $25.00 an hour in a rural, lakeside location. 

Can You Support Your Family If You Earn 25 Dollars An Hour?

If you earn $25 per hour then you should, in theory, be able to cater to your family's needs, but the quality of life you provide won't necessarily live up to their desired standards, and the more family members you're supporting, you'll have to learn to budget accordingly. 

Factors to consider include location and cost of living, housing, and food costs. As an example, the median family income in the US in 2021 was roughly $71,000, so if you are supporting your family on your single wage of $52,000, as you can see, this is considerably less than the average household income, and if you're living in a higher cost location such as California, with an average income of $78,000 you'd have to make some cutbacks, such as downsizing your property, to sustain an average lifestyle. 

Can You Own A Car If You Make 25 Dollars An Hour?

By making $25 per hour, you should be able to own a car, even if you're supporting a family and live in a higher-cost area. Yet, the average car ownership costs roughly $10,500 per year which is slightly over 1/5 of a full-time yearly working wage of $52,000.

This is why you'll need to manage your finances accordingly. For instance, you could buy a used car for cash to avoid monthly loan installments, and although this might have higher maintenance costs than a new car, over 5 years this will generally work out quite a lot cheaper than buying fresh and facing high financing costs and low maintenance expenses.

If you do buy new, then you'll want to avoid monthly payments exceeding 10% of your monthly pre-tax income, which if working 2,080 hours a year equals $433.3. You'll also want to make a good financing deal, and avoid payment plans exceeding 48 months. 

Finally, additional circumstances need to be considered when buying a car, such as location, supporting a family, and living expenses could alter your choice of which car to purchase. In other words – stay realistic, and not optimistic.  

Can You Buy A House If You Make 25 Dollars An Hour?

Depending on your location, buying a home earning $25 an hour or $52,000 per annum may seem like a dream, but it can also be something realistic! 

To help illustrate this point, in the most expensive city in America, San Jose, the average home costs $1,875,000, and you'd need to be earning an annual wage over $330,000 to be able to pay off a monthly mortgage rate of $7,700! When compared to Buffalo, which has an average home cost of $202,300, and requires an annual wage of $51,525 to cover this. In fact, out of the 50 states, only 8 have a recommended wage of $52,000 or more for home ownership, and to be able to comfortably pay off a mortgage. 

Therefore, in general, if you’re trying to afford a home on a single wage of $25 an hour, or the full-time wage working for 52 weeks per year of $52,000, you're going to need to carefully budget yourself to do so. 

How Much Is 25 Dollars An Day?

To understand how much you’ll earn per day, first, we need to understand how much you make per hour, and the hours worked. For instance, if you work 8 hours a day, then we take this number and multiply it by 25, which equals $200 a day, before tax. 

How Much Is 25 Dollars An Week?

Let’s assume you work full-time hours of 8 hours a day, equalling $200, for 5 days a week. To calculate how much $25 is a week, we need to take the daily wage and multiply this by the days of the week you've worked. This equals $1000 a week, before taxes. 

How Much Is 25 Dollars An Fortnight?

Assuming you work full-time hours of 8 hours a day for 5 days a week, earning $1000, to calculate your wage per fortnight we take the average weekly pay and double it, which equals $2,000 every fortnight, before tax. 

How Much Is 25 Dollars An Month?

Assuming you work full-time hours of 8 hours a day for 5 days a week, for 52 weeks per year, to calculate the monthly wage you'll need to divide your annual wage of $52,000 by 12, which equals $4333.3 before taxes.

How Much Is 25 Dollars An Year?

Let's assume you work 40 hours per week for 52 weeks per year, for $25 per hour. To understand your annual wage, you'll need to multiply your hourly pay by the hours worked per week and the number of weeks per year. This equals $52,000.  However, this number is your gross monthly pay; and excludes additional taxes.

How Much Is 25 Dollars An Hour After Taxes?

Let's assume you work for 40 hours per week, for 52 weeks per year, and for $25 per hour, equaling $52,000. As a tax player, if you're a single filer, then as of 2022, you’ll have to deduct your federal income tax liability of -$4,492, your social security of -$3,224, and medicare tax of -$754. This equals a net pay of $43,530. On top of this, you'll need to deduct State/Local Taxes from this amount, which differs depending on which State you’re filing in.

Jobs That Earn 25 Dollars An Hour:

Here is a list of jobs that pay $25 per hour. To earn this amount an hour, you’ll most likely need training and also experience. 

  1. Property manager
  2. Sheet metal worker
  3. Firefighter
  4. Traffic technician
  5. Personal trainer
  6. Social worker
  7. Paralegal
  8. Tower climber
  9. Music teacher
  10. Purchasing manager

Jobs That Make More Than 25 Dollars An Hour

To make more than $25 per hour, you're going to need experience, and positions will most likely be competitive. Here's a list of jobs that pay more than $25 per hour. 

  1. Actuary
  2. Insurance agent
  3. Real estate agent
  4. Event planner
  5. Marketing management
  6. Plumber
  7. Landscaper
  8. Film and video editor
  9. Food scientist
  10. Kindergarten teachers
Written by
Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.
Have any questions? Write us a message.
Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.