How Much Do I Make a Year If I Make 29 an Hour?
Gain financial clarity. Transform your hourly wage into a clear understanding of your annual income and take-home pay.
Understanding your annual income when paid hourly involves more than a simple calculation. While an hourly wage provides a clear rate for each hour worked, determining your full annual earnings requires considering your typical work schedule and various deductions. Converting an hourly rate to an annual figure is a foundational step for effective personal financial planning.
Determining Gross Annual Income
Calculating your gross annual income from an hourly wage begins with a standard assumption of full-time employment. For many, this means working 40 hours per week for all 52 weeks in a calendar year. To illustrate, if you earn $29 per hour, a full-time schedule would yield an annual gross income of $60,320, calculated by multiplying $29 by 40 hours and 52 weeks.
This calculation adjusts for different work arrangements. For instance, if you work part-time, such as 20 or 30 hours per week, your total annual income will be proportionally lower. A 20-hour work week would result in $30,160 annually, while 30 hours per week would equate to $45,240.
Overtime pay can increase your gross annual income. Under the Fair Labor Standards Act (FLSA), hours worked beyond 40 in a workweek qualify for at least one and one-half times your regular hourly rate. For example, if you work 50 hours in a week, the additional 10 hours would be paid at $43.50 per hour ($29 x 1.5). Paid time off, such as vacation days or sick leave, also contributes to your gross annual income by ensuring you receive pay for scheduled hours even when not actively working.
Understanding Your Net Pay
Your gross annual income represents your total earnings before any deductions, which differs from your actual take-home pay, known as net pay. Various mandatory and voluntary deductions reduce your gross income.
Federal income tax is a primary deduction, with the amount withheld depending on your income level, filing status, and Form W-4 information. The United States employs a progressive tax system, meaning higher income levels are subject to higher marginal tax rates. State and local income taxes also apply in many jurisdictions, reducing gross pay based on residence and employment location.
Federal Insurance Contributions Act (FICA) taxes are mandatory deductions funding Social Security and Medicare programs. For 2025, employees contribute 6.2% of their wages to Social Security, up to an annual wage base limit of $176,100. Additionally, employees pay 1.45% of all their wages towards Medicare, with no wage base limit. An additional Medicare Tax of 0.9% applies to wages exceeding $200,000 for single filers.
Beyond these taxes, common pre-tax deductions can also reduce your taxable income and net pay. These often include contributions to retirement accounts, such as a 401(k), or premiums for health insurance. Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions are other examples of pre-tax deductions. The exact amount of all these deductions varies greatly based on individual circumstances, benefits elected, and tax withholdings. Reviewing your personal pay stub is the most direct way to see your specific breakdown.