$45,000 a Year Is How Much an Hour?

Young smiling businessman talking with his coworkers in the office.
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People are starting to refer to The Great Resignation as “The Great Reshuffle” as a huge part of the workforce redefines what work can be. People aren’t just quitting their jobs and walking away from the workforce. They are finding jobs that either pay more or give them more satisfaction. Some are even starting their own businesses.

When comparing jobs or calculating how much someone needs to make at their own business to replace their current income, it’s useful to know how much they would get paid.

A salary of $45,000 a year is equivalent to $22.06 an hour. However, converting $45,000 a year to an hourly rate may not be that simple because of the way payroll works. Here are some factors that affect how much $45,000 a year is per hour.

$45,000 a Year Is How Much?

This table doesn’t include the value of any benefits or perks included in a salary and benefits package. The table below shows the pre-deductions pay that someone would earn working exactly 40 hours per week for 52 weeks per year, or 2040 hours per year. This isn’t considering illness, holidays or other reasons that someone wouldn’t be paid.

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Pay Period Gross Pay Math
Hourly $22.06 $45,000 / 2040 hours
Daukt $123.28 $45,000 / 365 days
Weekly $865.38 $45,000 / 52 weeks
Biweekly $1730.77 $45,000 / (52 weeks / 2)
1st and 15th $1875.00 $45,000 / (12 months x 2)
Monthly $3750.00 $45,000 / 12 months

This table only shows gross pay, not net or take-home pay. Gross pay is the amount of money on the check before any taxes or deductions are taken out, not the amount deposited in a bank account. This number is useful for comparing pay across jobs or income over time but doesn’t break down how much someone would need to make per hour to replace $45,000 per year. Take-home pay isn’t as simple to calculate as gross pay, though.

Factors That Affect Your Take-Home Pay

Many factors can affect take-home pay. These are often called payroll deductions. Some common deductions include :

  • Income tax
  • Social security tax
  • Retirement contributions
  • Child support
  • Wage garnishments

These are things taken out of or added to someone’s paycheck by their employer before they even see the check. 


Taxes are the most well-known deduction. The IRS uses a progressive tax system. This means that income is separated into brackets and each bracket has a marginal tax rate. The brackets do not represent the total income that someone makes but show the tax rate on that section of their income. 

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State income taxes also have to be considered in a salary. California and Hawaii have the highest state tax rates.

You won’t have to pay any state income tax if you live in:

  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming

These factors, place of residence, additional income from a spouse or side hustle, taxable credits and deductions, will all affect the amount an individual would take home. Even a health savings account adds to the confusion of the hourly rate because it reduces an individual’s tax obligation. 


Benefits can also be added to someone’s pay, affecting the hourly pay rate. Some companies give reimbursements for things like technology, tuition, or fuel.

Paid time off is another benefit that would need to be considered while calculating the hourly rate to get to $45,000 per year. For example, if someone gets two weeks of PTO each year, then they would only work 1,960 hours per year instead of 2,040. The hourly rate would need to be $22.96 to make $45,000 per year. 

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Health Insurance

Health insurance can be both an addition to and a deduction from someone’s gross pay. For someone getting health insurance through their employer, that cost would need to be factored into their hourly tax rate. The average health insurance premium for an individual is $456 per month. Based on 2,040 hours worked per year, insurance would add $2.68 to the hourly rate needed if someone were trying to replace their $45,000 salary. This means they would have to make at least $24.74 per hour.


A salary of $45,000 per year is approximately $22.06 per hour, but factors including taxes and benefits will affect annual salary to hourly pay conversions. 

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.

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About the Author

Diane Fogle is the owner and sole freelance writer at The Little Green Bird. She received her Masters of Library and Information Science from the University of Denver.  The research skills gained through that program, combined with a love of learning and intellectual freedom, have led her to a passion for helping businesses communicate with their customers. She lives in Colorado where she hikes with her husband, two young daughters and an old greyhound.
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