It’s not always obvious, but knowing how your income is broken down can be a huge help in budgeting and saving your money.

Did you recently get a job that earns $42,000 a year? You might be curious how much you really earn on an hourly basis with 42,000 dollars a year.

**But, $42,000 a year is how much an hour? And is $42k a good salary? **

Read on to find out the answers to your questions! Also included in this article is an example budget that you can use to make sure that you’re spending every last penny wisely.

## $42,000 A Year Is How Much an Hour?

So, how much is 42,000 dollars a year per hour? To answer your question in a nutshell, the hourly wage equivalent of $42,000 per year is **$20.19 per hour**.

To get the exact amount of how much $42,000 a year will vary on whether you **work full-time** or **part-time**. If you work full-time, the number of hours you work per week is **40 hours a week**. However, if you work part-time, your estimated number of hours per week is 25-30 hours.

Let’s calculate, **how much is $42,000 a year per hour **working 40 hours per week (full-time)?

To compute how many hours you work in a year assuming you work full-time, simply multiply 40 hours a week by 52 weeks per year to get** 2,080 hours**.

**40 hours a week x 52 weeks per year = 2,080 hours**

To arrive at your hourly pay, you will have to divide your yearly salary by the number of working hours in a year.

**Hourly rate: $42,000 annual salary / 2,080 hours = $20.19 per hour**

## $42,000 A Year Is How Much a Month?

Knowing and comprehending your monthly income may assist you in allocating funds together with your monthly expenditures.

If you work full-time and earn 42,000 dollars a year, you would get a before-tax income of **$3,230.40**.

To compute this, multiply your hours worked per month by the hourly rate.

**Monthly Income Before Tax: 160 hours x $20.19 hourly rate = $3,230.40**

## $42,000 a Year Is How Much Per Week?

If you work the usual 9-5 every week, you would get **$807.60 before tax pay**.

To get to this amount, just multiply the number of hours worked every week by the hourly rate.

**Weekly Income Before Tax: 40 hours per week x $20.19 per hour = $807.60**

## $42,000 a Year Is How Much Biweekly?

Paychecks are typically issued every two weeks by the majority of employers.

If you want to know how much before-tax income you would receive from your biweekly paycheck, simply multiply your weekly before-tax income by 2 to get **$1,615.20**.

**$42,000 Biweekly Pay: $807.60 x 2 weeks = $1,615.20**

## $42,000 a Year Is How Much Per Day?

To see how much is your daily income before tax, simply multiply $20.19 hourly wage by 8 hours to get **$161.52**.

**$20.19 x 8 hours is $161.52 per day.**

And, as discussed before, the breakdown of $42,000 a year comes down to $20.19 per hour.

**To easily understand these amounts, here is a** **breakdown of the $42,000 annual salary before taxes**.

$42,000 a year | Before Taxes |
---|---|

Yearly (52 weeks) | $42,000 |

Monthly (160 hours) | $3,230.40 |

Bi-weekly (80 hours) | $1,615.20 |

Weekly (40 hours) | $807.60 |

Daily (8 hours) | $161.52 |

Hourly (1 hour) | $20.19 |

## $42,000 a Year Is How Much an Hour After Taxes?

Your yearly income of $42,000 will place you in the __22% Federal tax bracket in 2021__. You will fall into the 22% income tax bracket of $40,526 to $86,375. In this case, you may count on spending $4,664 + 22% of the amount over $40,525.

However, this may not be accurate as some states have different income tax brackets or have no state income tax at all. This includes states like Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.

To make sure we calculate it accurately, let us use this __Income Tax Calculator__ for our convenience.

Let us take into account the total tax payment of a person living in Iowa.

Assuming an Iowa resident earning a $42,000 yearly salary will pay a total tax of $8,162 representing a tax rate of 19.4% (federal taxes, state taxes, and FICA taxes). With this given information, we can conclude that your take-home pay will be **$33,838**.

**Annual Salary After-Tax: $42,000 – $8,162 = $33,838**

Let us continue to assume that you pay **19.4%** of your taxes for the following computations.

### How Much Is $42,000 Yearly Salary In a Month After Taxes?

To calculate your monthly after-tax pay of **$2,819.83**, simply divide your annual salary after-tax by 12 months.

**Monthly Take-Home Pay: $33,838 / 12 months = $2,819.83**

### How Much Is $42,000 Salary Weekly After Taxes?

To calculate your weekly after-tax pay of **$704.96**, divide your monthly take-home pay by 4.

**Weekly Take-Home Pay: $2,819.83 / 4 = $704.96**

### $42,000 a Year Is How Much Biweekly After Taxes?

To calculate your biweekly after-tax income of **$1,409.92**, simply multiply your weekly take-home pay by 2 weeks.

**Biweekly Take-Home Pay: $704.96 x 2 weeks = $1,409.92**

### How Much Is $42,000 Per Year Daily After Taxes?

To get the right calculation of your daily take-home pay of **$130.16**, multiply the hourly after-tax pay by 8 hours.

**Daily Take-Home Pay: $16.27 x 8 hours = $130.16**

## How Much Is $42,000 Per Year Hourly After Tax?

To calculate your hourly after-tax pay of $**16.27**, multiply the hourly wage by 19.4% to get the tax amount and deduct it from the hourly rate.

**Hourly After-Tax Pay: $20.19 hourly wage x 19.4% = $3.92 tax****Hourly After-Tax Pay: $20.19 hourly wage – $3.92 tax = $16.27 per hour **

$42,000 a year | After Taxes |
---|---|

Monthly (160 hours) | $2,819.83 |

Bi-weekly (80 hours) | $1,409.92 |

Weekly (40 hours) | $704.96 |

Daily (8 hours) | $130.16 |

Hourly (1 hour) | $16.27 |

## Is $42,000 a Year a Good Salary?

A good salary depends on how you spend it. For some, earning $42,000 yearly is already a good deal. But for some, it’s not. However, in my opinion, earning $42,000 annually might be challenging.

According to the Bureau of Labor Statistics, the median weekly earnings for people who work 40 hours a week per year is $1041.

According to the recent data, we can conclude that your weekly earnings of $807.60, which directly relate to an annual salary of $42,000, is less than the median weekly wages.

However, living on $20.19 per hour may be possible if you don’t live in expensive states like New York, California, and Hawaii.

Are you concerned that if you make a $20.19 hourly rate, you won’t be able to afford all of your regular outgoing costs? Don’t freak out! By __exercising control of your spending__ and __living frugally__, you should still be able to meet your monthly obligations.

## Sample Budget for $42,000 a Year

Making budgets will make your life easier. The following is an illustration of how much you should allocate in your monthly budget for your various expenses. Keep in mind that the costs of living might vary significantly from state to state.

Category | Budget | Percentage |
---|---|---|

Net Monthly Take Home Pay | $2,819.83 | 100% |

Savings | $423 | 15% |

Housing | $705 | 25% |

Food | $423 | 15% |

Utilities | $282 | 10% |

Transportation | $282 | 10% |

Healthcare | $141 | 5% |

Health Insurance | $282 | 10% |

Personal Expenses | $141 | 5% |

Recreation | $141 | 5% |

## Can You Buy a Home with 42k a Year?

Buying a house requires much thinking. You should be prepared for all the expenses that come along with it. According to __recent data__, the average upfront cost to buy a new home in the United States is $43,874.

With this information, we can see that it is possible to purchase a house with a salary of 42,000 dollars per year if the purchase is made using a mortgage loan.

However, you should not spend more than 28% of your earnings on mortgage payments plus possess a good credit score in order for you to be approved and be able to get a mortgage loan.

Based on the above standard, the maximum allowable mortgage expenses would be:

28% of annual income/12= **($42,000**** * 0.28)/12= $1,176 per month**

If your salary can cover all of your expected expenses, then you should be able to own a house with a $42K yearly salary with a maximum allowable monthly mortgage payment of $1,176.

With that in mind, below is a list of cities where you could live quite comfortably on an annual salary of $42,000 or less.

**10 Premium cities to consider living in with a yearly salary of $42,000**

- Coralville, Iowa
- San Marcos, Texas
- Alton, Illinois
- Coeur d’Alene, Idaho
- Gulfport, Florida
- McMinnville, Oregon
- Munhall, Pennsylvania
- Guthrie, Oklahoma
- Duluth, Georgia
- Canandaigua, New York

Likewise, if you earn an annual wage of $42,000 then here is a **list of cities to avoid living in. **

- New York City, New York
- Los Angeles, California
- Miami, Florida
- San Francisco, California
- Honolulu, Hawaii
- Washington, D.C.
- Oakland, California
- San Jose, California
- Boston, Massachusetts
- San Diego, California

At this point, you might be wondering how much you will need if you decide to just rent a home. You can use this __Rent Affordability__ Calculator to see how much you should expect for your monthly rent allowance.

According to the calculation, if you earn a monthly income of **$3,230.40 before taxes**, your maximum monthly rent allowance should be **$1,066**.

## How Much Is $42,000 a Year Per Hour: Final Thoughts

Calculating how much an hour is 42,000 dollars yearly salary can be quite confusing and stressful, but it sure did reveal some insights on how you should be living and spending your salary.

Can you live with a $42,000 yearly salary? If you know how to save and allocate your income wisely, yes it is possible.

However, if you live an expensive life with such an income, there may come a time when you’ll be struggling with keeping up with your monthly expenses.

Use your money wisely, save when you can, and practice living frugally to enjoy the fruits of your labor when you retire.

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Hey there, welcome to my blog!

I’m Swati, a mom, a personal finance enthusiast, and the owner of **TheBlissfulBudget**. My work has been featured in major publications including Fox 10, Credit Cards, Cheapism, How to Fire, Databox & Referral Rock.

I help busy budgeters like you save and make money by utilizing simple yet effective methods that can create wonders.

My Mantra: You are entitled to live the life you desire, and financial bliss should be simple to obtain–check out my blog for helpful tips on acquiring wealth easily.