Is $36 an Hour a Good Salary?
Is $36 an hour a good salary? Learn how to evaluate its true value based on your unique financial situation and life goals.
Whether an hourly wage of $36 is “good” is a common question for many evaluating their financial standing. The term “good” is subjective, depending on factors unique to each person. A comprehensive evaluation requires looking beyond the raw number to understand its true value, including its annual equivalent, economic benchmarks, and purchasing power in different locations.
Understanding What $36 an Hour Means Annually
An hourly wage of $36 translates into a significant annual gross salary, assuming a typical full-time work schedule. Working 40 hours per week for 52 weeks a year equates to a gross annual income of $74,880 before any deductions.
However, the amount an individual actually takes home, known as net income, will be less due to mandatory withholdings. These include federal income taxes and Federal Insurance Contributions Act (FICA) taxes. FICA taxes consist of Social Security tax at 6.2% and Medicare tax at 1.45%.
Comparing to Broader Financial Benchmarks
To understand where $36 an hour stands, compare it to national income averages. The median individual income in the United States was around $61,440 in 2023, and approximately $62,088 per year in the first quarter of 2025. An annual gross income of $74,880 from a $36 hourly wage is notably higher than these median individual figures.
The median household income in the U.S. was $80,610 in 2023. While a $36 hourly wage for a single earner approaches this median, household income often includes earnings from multiple individuals or other sources. The average hourly earnings for all employees on private nonfarm payrolls in the U.S. were $36.44 in July 2025. This indicates a $36 hourly wage aligns closely with the current national average.
Impact of Geographic Location
The value of a $36 hourly wage is significantly influenced by geographic location due to variations in the cost of living. Major expenses like housing, transportation, groceries, and utilities differ substantially between regions. For instance, coastal metropolitan areas and large urban centers generally have a much higher cost of living compared to rural areas or cities in the Midwest and Southern United States.
A $36 hourly wage might provide a comfortable lifestyle in a low-cost area, where housing and everyday expenses are lower. For example, states like Mississippi and Alabama have a lower cost of living index. Conversely, the same wage could present financial challenges in high-cost cities, such as Honolulu or San Francisco, where necessities are significantly higher. Individuals should research local cost of living indexes or use online tools to understand their income’s purchasing power.
Importance of Total Compensation
An hourly wage alone does not represent the full value of an employment package; total compensation includes various non-wage benefits. Health insurance is a significant component, with employers typically covering a substantial portion of premiums. Employer contributions to retirement plans, such as a 401(k) match, also add considerable value. Many employers match between 4% and 6% of an employee’s salary contributions, though vesting schedules vary.
Paid time off (PTO), including vacation, sick leave, and holidays, is another valuable benefit. Employers spend significantly on paid leave benefits, which adds to total compensation costs. Additional benefits like bonuses, professional development opportunities, or subsidized transportation can further enhance the overall value of a compensation package.
Aligning with Personal Needs and Goals
The determination of whether $36 an hour is a “good” salary depends on an individual’s specific financial situation and personal aspirations. Lifestyle expectations, such as desired housing, leisure activities, and family size, directly impact how sufficient this wage might be. Personal financial obligations, including existing debt, student loans, or childcare costs, also play a significant role in assessing income adequacy.
Long-term financial goals, such as saving for a home down payment, funding retirement, or planning for higher education, necessitate a careful evaluation of income versus expenses. Creating a detailed personal budget and financial plan allows an individual to assess if a $36 hourly wage can support current needs and contribute to future objectives. This personalized approach is essential for determining the financial suitability of any income level.