Is $29 an Hour Good? A Look at Your Annual Salary

Is $29 an hour a good wage? The answer is subjective, as an hourly rate’s value depends on individual circumstances. Understanding these factors is essential to determine if this pay rate aligns with personal financial goals and living requirements. This article explores the considerations that shape the true value of earning $29 an hour.

Understanding Annual Earnings from Hourly Pay

Earning $29 per hour translates into a significant annual income for a standard full-time work schedule. Assuming a consistent 40-hour workweek for 52 weeks a year, this hourly rate generates a gross annual income of $60,320. This figure represents total earnings before any deductions.

The amount an individual actually takes home, known as net income, will be less than the gross amount. Mandatory deductions reduce this sum, including federal and state income taxes, Social Security, and Medicare. Pre-tax deductions for benefits like health insurance or retirement contributions also reduce take-home pay.

Comparing Wages to Averages

To contextualize an hourly wage of $29, compare it against broader economic benchmarks. The federal minimum wage stands at $7.25 per hour. Earning $29 an hour is significantly higher than this baseline, surpassing the lowest legally mandated pay.

National averages show the median weekly earnings for all U.S. workers were approximately $1,194 in the first quarter of 2025, which annualizes to about $62,088. The average hourly earnings for all private employees in the U.S. were $36.44. While $29 per hour is below this average, it is relatively close to the annualized median weekly wage, positioning it within a common range for many workers. The median household income in the United States was $80,610, providing another point of comparison.

The Influence of Cost of Living

The actual purchasing power of $29 an hour can differ dramatically based on geographic location. Expenses like housing, utility costs, and transportation vary widely across regions. The price of everyday necessities such as groceries and healthcare also exhibit significant regional differences.

For instance, an income of $29 an hour might provide comfortable living in areas with a lower cost of living, such as rural communities or smaller towns. In these locations, housing and essential services are less expensive, allowing the same income to stretch further. Conversely, this wage could prove insufficient to cover basic living expenses in high-cost metropolitan areas, where housing markets are competitive and living expenses are elevated. The impact of location on an hourly wage’s real value is a primary determinant of financial well-being.

Personal Financial Landscape

Ultimately, whether $29 an hour is considered a “good” income depends heavily on an individual’s unique financial landscape. Effective personal budgeting, which involves managing income against expenses, is crucial in determining financial comfort. Existing debt obligations, such as student loans or credit card balances, directly impact the portion of income available for discretionary spending or saving.

The size of a household and the number of dependents also play a substantial role in assessing financial adequacy. Individual financial goals, such as saving for retirement or a home down payment, influence how an income level is perceived. Employer-provided benefits, including health insurance or retirement contributions, can also substantially enhance the total compensation package, adding considerable value beyond the hourly wage itself.