Is $31 an Hour a Good Salary?

Whether an hourly wage of $31 is a suitable income depends significantly on an individual’s financial circumstances and where they reside. What is considered a comfortable living in one area might be insufficient in another, highlighting the subjective nature of a “good” salary. This evaluation requires examining how this hourly rate translates into annual earnings, comparing it to broader economic benchmarks, and assessing its alignment with personal financial objectives.

Translating Hourly to Annual Income

An hourly wage of $31, based on a standard 40-hour work week and 52 weeks per year, translates to a gross annual income of $64,480. This figure represents total earnings before deductions. This gross amount is significantly reduced by mandatory and voluntary payroll withholdings, impacting actual take-home pay.

Mandatory deductions include federal income taxes, which operate on a progressive system with different tax brackets. For 2025, federal income tax rates range from 10% to 37%. State and local income taxes are also withheld in many jurisdictions, with rates varying widely; some states have no income tax, while others have flat or progressive structures.

Federal Insurance Contributions Act (FICA) taxes are mandatory withholdings that fund Social Security and Medicare. For 2025, the Social Security tax is 6.2% of wages, and the Medicare tax is 1.45% on all wages. Voluntary deductions like health insurance premiums and contributions to retirement plans (e.g., 401(k)s or IRAs) further reduce gross income to a net, spendable amount.

Contextualizing Your Income

To understand the value of $31 an hour, compare it against broader economic data. In 2025, average hourly wages in the United States were around $31.34. This suggests that $31 an hour is close to the national average for many workers, though it may be below the overall average for all employees.

The purchasing power of $31 an hour is heavily influenced by the cost of living in a geographic area. Major expenses like housing, transportation, and food vary significantly across the country. For instance, average rent can range widely, soaring in expensive metropolitan areas. Conversely, in more affordable regions, $31 an hour may provide more disposable income after housing costs.

Transportation is another substantial household expense, varying based on reliance on personal vehicles versus public transit. Food costs also fluctuate regionally. These variations mean that while $31 an hour might afford a comfortable lifestyle in a low-cost area, it could present financial challenges in a high-cost environment.

Aligning Income with Your Financial Goals

To determine if $31 an hour adequately supports your financial aspirations, constructing a detailed budget is a practical step. Begin by itemizing all essential monthly expenses. These typically include housing payments, such as rent or mortgage installments, along with associated utilities like electricity, water, and internet services.

Food expenditures (groceries and dining out) and transportation costs (vehicle payments, insurance, fuel, or public transit) comprise significant portions of a budget. Beyond recurring costs, account for debt obligations, including student loan payments, credit card balances, or auto loans. Once essential expenses are covered, allocate remaining income to discretionary spending categories, such as entertainment, hobbies, or personal care items. This helps individuals identify areas where spending can be adjusted.

A comprehensive financial plan also incorporates savings for various objectives. Building an emergency fund, ideally covering three to six months of essential living expenses, provides a financial safety net for unexpected events. Allocating funds for short-term goals, such as a down payment on a vehicle or a vacation, is common. For long-term security, regular contributions to retirement accounts, such as 401(k)s or IRAs, and possibly education savings plans, are important steps toward achieving future financial independence.