Salary to Hourly Rate Calculator 2026
Converting between hourly and annual — for job comparisons or budgeting.
Convert your annual salary to an equivalent hourly rate in United States. Adjust for hours per week and weeks per year. Also shows daily, weekly, and monthly pay equivalent.
Based on standard 40hr/week, 52 weeks/year. Adjust for actual hours in Standard mode.
How to convert salary to hourly rate US 2026
Convert annual salary to hourly by dividing total hours worked. Different approaches apply based on hours/week, PTO, and whether you include benefits value.
Simple division formula
Hourly rate = Annual salary ÷ (Hours/week × Weeks/year). Most common: 40 × 52 = 2,080 hrs. $60,000 ÷ 2,080 = $28.85/hr. Work 37.5 hrs/week: $60,000 ÷ 1,950 = $30.77/hr.
Adjusting for PTO
If salary includes 2 weeks PTO: effective working weeks 50. $60,000 ÷ (40 × 50) = $30/hr during actual work. Increases effective rate. Most employers pay PTO so no need to exclude for total comp calc.
Day rate calculation
Day rate = Salary ÷ Working days/year. 260 weekdays - 10 federal holidays = 250 days. Plus 10 PTO days = 240 working days. $100,000 ÷ 240 = $417/day actual work; ÷ 250 = $400/day.
Gross vs net hourly
Gross: pre-tax. Net: after federal + state + FICA + benefits. $100k gross ÷ 2,080 = $48.08 gross/hr. Take-home in TX: $37.84/hr net. California: $34.76/hr net. State tax matters significantly.
US salary to hourly conversion table 2026
Conversion at 40 hrs/week (2,080 hrs/yr)
| Annual salary | Hourly | Daily | Net TX | Net CA |
|---|---|---|---|---|
| $25,000 | $12.02 | $100 | $11.22 | $10.95 |
| $35,000 | $16.83 | $135 | $14.85 | $14.35 |
| $50,000 | $24.04 | $192 | $20.17 | $19.25 |
| $60,000 | $28.85 | $231 | $23.08 | $21.88 |
| $75,000 | $36.06 | $288 | $29.10 | $27.42 |
| $100,000 | $48.08 | $385 | $37.84 | $34.76 |
| $150,000 | $72.12 | $577 | $55.30 | $49.80 |
| $200,000 | $96.15 | $769 | $71.25 | $63.40 |
| $300,000 | $144.23 | $1,154 | $99.92 | $87.80 |
At 37.5 hrs/week (1,950 hrs/yr)
| Annual salary | Hourly |
|---|---|
| $60,000 | $30.77 |
| $100,000 | $51.28 |
| $150,000 | $76.92 |
W-2 employee vs 1099 contractor rate comparison
Why 1099 contractors charge more
Must cover: self-employment tax 15.3% (employee + employer FICA), health insurance ($500-1,500/mo), retirement (no employer match), disability, PTO, continuing education, business expenses, equipment. Total overhead: 40-70% above W-2.
Rate calculation for W-2 equivalent
| W-2 salary | 1099 equivalent | 1099 day rate |
|---|---|---|
| $80,000 | $112k-$136k | $450-$540 |
| $100,000 | $140k-$170k | $560-$680 |
| $150,000 | $210k-$255k | $840-$1,020 |
| $200,000 | $280k-$340k | $1,120-$1,360 |
When contractor wins
High-demand skills (tech, specialized consulting). Ability to work multiple clients. Comfort with tax complexity. Own health insurance solution (spouse's plan, ACA marketplace). Disciplined with self-funded retirement.
When W-2 wins
Predictable work. Lower-risk tolerance. Valuable employer benefits (company-sponsored health, RSUs, 401k match). Career path to management. Avoid administrative burden.
FLSA overtime rules in the US
The Fair Labor Standards Act (FLSA), administered by The US Department of Labor, is the federal law that determines who gets overtime. It draws a line between non-exempt employees (entitled to 1.5x pay for hours over 40 in a workweek) and exempt employees (salaried, not entitled). Three tests must all be met to be exempt: salary basis, salary level, and duties test. Converting salary to hourly is only legally simple for non-exempt workers. See DOL WHD Overtime.
Salary threshold for exempt status (2026)
To be exempt, a salaried employee must earn at least $35,568/year ($684/week) and pass the duties test. The DOL's April 2024 rule had tried to raise this in two steps (to $43,888 in July 2024, then $58,656 in January 2025), but a November 2024 federal court ruling in Texas v. DOL vacated those increases nationwide. In May 2026 the DOL issued a technical amendment removing the vacated 2024 language and restoring the 2019 thresholds — so the operative 2026 figures are $684/week for the standard exemption and $107,432/year for the highly-compensated-employee (HCE) exemption. Always verify the current threshold at the DOL WHD salary-levels page before classifying a role.
Overtime calculation
Overtime pay = 1.5x the "regular rate" for hours worked over 40 in a single workweek. The regular rate includes hourly wages, non-discretionary bonuses, and shift differentials — divided by hours actually worked. A non-exempt employee earning $20/hour who works 45 hours in a week receives 40 × $20 + 5 × $30 = $950. Daily overtime is not required by federal law.
State rules that go beyond federal
California: daily overtime (1.5x after 8 hours, 2x after 12); the 7th consecutive workday triggers overtime. The exempt salary threshold is 2× the state minimum wage × 2,080 — $70,304/year for 2026. Washington: same 2× formula gives a 2026 exempt threshold of $71,260.80 (the highest in the country). Colorado and New York set their own exempt salary thresholds that index upward each January and run well above the federal $684/week floor. Alaska and Nevada: daily overtime after 8 hours for most workers. Always check the state labor department if you work across state lines.
State minimum wage comparison 2026
The federal minimum wage has been $7.25/hour since July 24, 2009 — the longest stretch without an increase in the law's history. More than 30 states and DC exceed it; 20 states default to the federal floor. When state and federal differ, the higher rate applies. The DOL maintains an up-to-date state-by-state map at dol.gov/whd/minimum-wage/state.
2026 minimum wage — major states
| State | 2026 minimum wage | Note |
|---|---|---|
| Washington | $17.13 | Highest statewide; no tip credit; Seattle higher |
| New York | $17.00 / $16.00 | $17.00 in NYC, Long Island & Westchester; $16.00 rest of state |
| Connecticut | $16.94 | Indexed to CPI each January |
| California | $16.90 | Fast-food sector $20.00; some cities higher (West Hollywood $20.25); no tip credit |
| New Jersey | $15.92 | Most employers; phased annual increases |
| Colorado | $15.16 | Denver municipal minimum higher |
| Arizona | $15.15 | Indexed to CPI |
| Illinois | $15.00 | Chicago / Cook County higher |
| Florida | $14.00 | Rises to $15.00 on Sept 30, 2026 |
| Texas | $7.25 | Federal floor; no state law |
| Pennsylvania | $7.25 | Federal floor |
| Georgia / Wyoming | $5.15 (state) | Federal $7.25 applies for FLSA-covered employers |
Tipped minimum and tip credit
Federal law (FLSA §3(m)) allows a $5.12/hour tip credit, so federal tipped minimum is $2.13/hour cash wage — the employee's tips must bring total pay to at least $7.25. Seven states (California, Oregon, Washington, Nevada, Montana, Minnesota, Alaska) and DC disallow any tip credit — tipped workers earn the full state minimum in cash plus tips. A handful of cities (Chicago, Portland ME, DC phase-out by 2027) are eliminating tip credits even where state law allows them.
FAQFrequently asked questions about US salary to hourly
Why is contractor rate higher than salary rate?
Contractors cover 15.3% self-employment tax, own health insurance, no PTO, retirement, and business expenses. Rate should be 1.4-1.7x equivalent W-2.
What is US federal minimum wage 2026?
Federal minimum: $7.25/hr (unchanged since 2009). In 2026, state minimums range from $7.25 up to $17.13 (Washington, the highest). Many cities and sectors pay more — California fast-food workers earn $20/hr and West Hollywood's floor is $20.25. Always check your local rule.
How does state affect take-home on $75k?
TX/FL (no state tax): $60,750 net. CA: $57,400 net. NY: $57,800 net. Up to $3,350 per year difference in take-home on same gross salary.
Is $40/hr good pay US?
$40/hr = $83,200/year full-time. Above US median household income ($75k). Top 30% of individual earners. Comfortable in most US metros; tight in SF/NYC with family.
Does hourly rate affect mortgage approval?
Yes. Lenders want 2 years of stable hourly employment. Consistent OT often counted at 50-75% for stability. Variable hours reduce borrowing capacity vs salary.
Where these figures come from
Income figures on this page are drawn from The IRS (tax treatment), the Social Security Administration (payroll tax base), and the US Bureau of Labor Statistics (national earnings data).
- Federal income tax brackets — IRS — Federal Income Tax Rates and Brackets.
- FICA payroll tax (6.2% + 1.45%) — IRS Topic 751 — SS & Medicare Withholding.
- SS wage base ($184,500) & 2026 COLA (2.8%) — SSA — Contribution and Benefit Base.
- National wage & earnings data — BLS — Wages.
- Federal minimum wage — US Department of Labor — Minimum Wage.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the income breakdown based on the salary, hours, or payment details you entered — using current tax rates and standard employment conditions.
Use this to compare job offers, understand your effective hourly rate, or see how a raise flows through to take-home pay. Adjust inputs to model different scenarios.
Not a payslip or employer commitment. Actual pay depends on your specific employment agreement, deductions, and employer calculations.
Uses current tax rates and standard employment conditions. All calculations run in your browser — no data is sent to any server.
Income calculations are driven by gross pay, tax bracket, and any pre-tax benefits or deductions. The gap between gross and net widens as income rises due to progressive tax rates.
The difference between your gross salary and take-home pay reflects federal income tax, FICA (Social Security and Medicare), and any student loan payments. Higher income means a larger percentage goes to tax.
For non-exempt hourly workers, FLSA overtime (1.5x the regular rate for hours over 40 in a workweek) and shift differentials significantly change the effective annual income versus a flat 40-hour week.
Pre-tax 401(k), traditional IRA, HSA, and FSA contributions reduce your taxable income — lowering your effective tax rate and changing the gross-to-net split, even though your gross pay is unchanged.
To improve your income position, focus on reducing tax drag, negotiating better terms, or restructuring how you receive compensation.
Weigh the 401(k) match, paid time off (PTO), employer-paid health insurance, bonuses, and equity (RSUs) as part of total compensation — not just base salary.
Directing income into a 401(k), HSA, or FSA before tax lowers your taxable income and increases the after-tax value of the same gross salary.
Converting salary to an hourly rate (or vice versa) helps compare roles with different structures on a like-for-like basis.
Income connects to tax, retirement, and budgeting decisions. Use these calculators to see the full picture.
See the full tax breakdown including federal income tax, FICA (Social Security and Medicare), and your effective tax rate.
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