Is $43 an Hour Good? Evaluating Your Annual Salary

Whether an hourly wage of $43 is considered favorable depends on a range of personal and economic factors. Income evaluation is not a one-size-fits-all assessment, requiring examination of individual financial needs, geographic location, and broader economic benchmarks. This analysis explores various aspects to determine the value of a $43 per hour earning.

Converting Hourly to Annual Earnings

To understand the annual earning potential of $43 per hour, a standard calculation assumes a full-time work schedule. Assuming a 40-hour work week and 52 weeks in a year, the gross annual salary amounts to $89,440.

This calculation provides gross income, the total earnings before deductions. Gross income differs from net income, which is actual take-home pay after taxes and other withholdings. Gross income serves as a starting point for evaluating overall compensation.

National and Regional Wage Benchmarks

An hourly wage of $43 translates to an annual gross income of $89,440, which stands above various national income benchmarks. For instance, the median weekly wage for American workers in the first quarter of 2025 was $1,194 (approximately $62,088 annually). The median household income in the United States was estimated at $78,171 in 2025. In 2023, the real median personal income in the United States was $42,220. These figures suggest that an $89,440 annual salary is considerably higher than the median earnings for both individuals and households nationally.

Wage levels vary significantly across industries, experience levels, and job roles. For example, Washington, D.C., reported an average hourly wage of $52.89 in March 2025, while Mississippi’s average was $28.25. The Bureau of Labor Statistics (BLS) provides detailed wage data by occupation, industry, and geographic area. Individuals can use BLS resources to compare their hourly wage against averages for their profession and location.

Impact of Geographic Cost of Living

The purchasing power of $43 an hour is heavily influenced by the geographic cost of living. Expenses like housing, transportation, food, utilities, and healthcare differ substantially across regions. A single person in the U.S. might spend around $2,924 monthly for living costs, while a family of four might face approximately $7,101. However, these averages mask significant regional disparities.

High-cost metropolitan areas like New York City, San Francisco, or Honolulu have significantly higher expenses. New York’s cost of living index is 148.2, with housing costs more than double the national average in some areas. In contrast, lower-cost rural regions or cities like Decatur, Illinois, with monthly expenses around $1,559 for a single person, offer greater affordability. Housing is often the largest expense; average rent for a two-bedroom apartment nationwide is around $1,154 per month, but can soar to thousands in major cities. Understanding these variations is important, as an income that provides a comfortable lifestyle in one area might be insufficient in another. Resources like the BLS Consumer Price Index (CPI) and other cost of living indexes can help individuals research specific expenses for their area.

Understanding Your Net Pay

While a gross annual income of $89,440 provides a clear picture of total earnings, net pay is reduced by various mandatory and voluntary deductions. Federal income tax is a primary deduction, with the U.S. operating on a progressive tax system where higher incomes are taxed at higher marginal rates. The specific amount withheld depends on filing status, dependents, and other adjustments.

Beyond federal income tax, employees face Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare. For 2025, the Social Security tax rate is 6.2% on earnings up to $176,100, while the Medicare tax rate is 1.45% on all earnings, with no wage limit. These taxes combine for a 7.65% employee contribution on applicable wages. Many states and some localities also impose income taxes, further reducing take-home pay. Common pre-tax deductions like health insurance premiums, traditional 401(k) contributions, and Flexible Spending Accounts (FSAs) also reduce taxable income, lowering the amount of tax owed. These deductions collectively determine the final net pay.

Aligning Income with Personal Financial Goals

Evaluating whether $43 an hour is sufficient ultimately depends on how well it aligns with personal financial goals and obligations. Creating a detailed personal budget is a key step to track income against expenses, ensuring that take-home pay can cover necessary outlays and support savings objectives. This involves categorizing spending for housing, utilities, food, transportation, and discretionary items.

Considering existing debt obligations, such as student loans, credit card balances, or car payments, is important. A significant portion of income might be allocated to debt repayment, impacting available funds for other purposes.

Establishing and contributing to savings goals—including an emergency fund, retirement accounts, or a home down payment—requires allocating a consistent portion of net income. Meeting these financial goals while having funds for discretionary spending, like entertainment or hobbies, indicates whether the $43 per hour wage effectively supports an individual’s desired lifestyle and future financial security.