$30 an Hour is How Much a Year? A 2025 State-by-State Breakdown

Wondering "$30 an hour is how much a year?" is a critical question for financial planning, career moves, and understanding your true earning potential. While the simple calculation gives you a gross annual salary, your actual take-home pay—and what that money can buy—varies dramatically depending on where you live. This definitive guide breaks down a $30 hourly wage into its real value for 2025, exploring how federal taxes, state income taxes, and local cost of living impact your bottom line. Whether you're considering a move, negotiating a salary, or just planning your budget, understanding the difference between your gross income and your real purchasing power is essential. This analysis provides the data-driven insights you need to see what a $30 an hour salary is truly worth across all 50 states.

Beyond the Gross: Deconstructing Your Annual Salary

An hourly wage of $30 translates into a specific, quantifiable annual figure. However, the real economic value of that income is far from uniform across the United States. This report provides a comprehensive financial analysis of a $30 per hour wage, moving beyond simple multiplication to reveal the true take-home pay and its effective purchasing power in all 50 U.S. states for the 2025 tax year.

The $62,400 Baseline

The foundation of this analysis is the Gross Annual Income (GAI). Based on a standard 40-hour workweek over 52 weeks, a $30 hourly wage equates to a GAI of $62,400. This figure represents the total earnings before any taxes or deductions are withheld. It is the starting point from which we will systematically subtract federal and state obligations to determine an individual's net income, or take-home pay. The central thesis of this report is that the value of this $62,400 is not static; its true worth is dictated by a complex interplay of multi-layered tax systems and the local economic environment where it is earned.

The Three Tiers of Taxation

To ascertain the net income from a $62,400 salary, it is necessary to account for three distinct tiers of taxation that apply to wage earners in the United States.

• Federal Income Tax: A progressive tax levied by the U.S. government, where higher portions of income are taxed at incrementally higher rates.
• FICA (Payroll) Taxes: The Federal Insurance Contributions Act mandates funding for Social Security and Medicare through a flat-rate payroll tax.
• State Income Tax: This is the most significant variable in determining take-home pay across different geographic locations. State income tax systems range from nonexistent in nine states to complex, high-rate progressive structures in others.

From Net Pay to Purchasing Power: The Cost of Living Factor

Calculating net income is only the penultimate step in understanding an income's true value. To provide a truly comprehensive analysis, this report introduces the Cost of Living Index (COLI) as a critical final metric. The COLI quantifies the relative cost of goods and services—including housing, groceries, and transportation—in a given state compared to the national average, which is benchmarked at 100. By adjusting the calculated net income for the local COLI, we arrive at the ultimate metric of this guide: Adjusted Purchasing Power. This figure represents the real-world value of an individual's take-home pay.

Methodology and Assumptions

To ensure a precise and consistent apples-to-apples comparison across all 50 states, this entire analysis is based on a single, consistent taxpayer profile:

• Gross Annual Income: $62,400
• Filing Status: Single
• Dependents: None
• Deductions: Standard Deduction (Federal and State, where applicable)
• Tax Year: All calculations are based on the most current 2025 tax laws, rates, brackets, and standard deduction amounts available.

The National Baseline: Calculating Federal & FICA Tax Obligations for 2025

Before examining state-level variations, it is essential to establish the baseline tax burden that a single individual earning $62,400 will face, regardless of their state of residence. This national baseline consists of federal income tax and FICA payroll taxes.

Determining Federal Taxable Income

Federal income tax is not calculated on gross income but on taxable income. For this profile, we use the 2025 federal standard deduction for a single filer, which is $15,750.

$62,400 (Gross Income) - $15,750 (Standard Deduction) = $46,650 (Federal Taxable Income)

Applying the 2025 Federal Progressive Tax Brackets

The U.S. federal income tax system is progressive. For a single filer with $46,650 in taxable income in 2025, the tax liability is calculated by applying the official IRS tax brackets.

Calculating FICA (Payroll) Taxes

Separate from federal income tax, Federal Insurance Contributions Act (FICA) taxes are levied on gross income to fund Social Security and Medicare.

• Social Security Tax (6.2%): $62,400 × 0.062 = $3,868.80
• Medicare Tax (1.45%): $62,400 × 0.0145 = $904.80
• Total FICA Tax: $3,868.80 + $904.80 = $4,773.60

The Pre-State-Tax Net Income

By subtracting the total federal and FICA tax obligations from the gross annual income, we can determine the national baseline for take-home pay before any state-level taxes are considered.

$62,400.00 (Gross Income) - $5,359.50 (Federal Tax) - $4,773.60 (FICA) = $52,266.90 (Pre-State-Tax Net Income)

The State-by-State Financial Landscape: A 50-State Deep Dive

With the national baseline established, the analysis now turns to the primary variable affecting take-home pay: state income tax. Each state's unique tax code and local economic conditions create a distinct financial environment. (Note: The full calculations for each of the 50 states are used to generate the ranked summary tables below.)

Comparative Analysis: Ranking the States by Take-Home Pay and Purchasing Power

The individual state calculations provide the raw data for a comprehensive national comparison. By organizing this data into ranked tables, clear patterns emerge, allowing for direct comparison of tax burdens and the true economic value of a $62,400 salary across the country.

50-State Ranking by Estimated Net Take-Home Pay

This table provides the most direct answer to how much a $62,400 salary is worth "after taxes." It ranks all 50 states from the highest net annual income to the lowest, illustrating the absolute dollar impact of various state and local tax policies.

50-State Ranking by Real Purchasing Power (The Ultimate Guide)

This final table represents the culmination of the analysis. It ranks each state not by nominal take-home pay, but by the real purchasing power of that pay when adjusted for the local cost of living. This metric provides the most accurate and actionable answer to the underlying question: "Where does my money go the furthest?"

Strategic Insights and Final Considerations

The data presented in this report offers a detailed financial snapshot, but its true utility lies in the strategic conclusions that can be drawn from a comparative analysis. Understanding these patterns is critical for making informed financial decisions in an increasingly mobile and complex economic landscape.

The "Tax Haven" Trap: Why No Income Tax Doesn't Always Mean More Wealth

A primary takeaway is the clear distinction between high nominal income and high real purchasing power. The nine states with no income tax offer the highest take-home pay, but this advantage is often neutralized by a higher cost of living. For example, Washington and New Hampshire, both no-tax states, rank 38th and 36th, respectively, for purchasing power. Focusing solely on income tax rates is a flawed strategy, as costs for housing and transportation can easily outweigh the benefits of a 0% state tax rate.

Identifying the "Sweet Spots": Where Low Taxes and Low Costs Align

The states that consistently rank highest for real purchasing power are those that strike a balance between a manageable tax burden and a low cost of living. The top 10 states for purchasing power are predominantly located in the South and Midwest. These states represent the financial "sweet spots" where a $62,400 salary provides the highest standard of living.

Implications for a Modern Workforce

For remote workers, this analysis is a practical guide to geographic arbitrage. Earning a salary benchmarked to a high-cost-of-living market while residing in a state like Oklahoma or Tennessee can increase real purchasing power by over $20,000 annually. For job negotiators, this data provides a powerful tool for discussing cost-of-living adjustments and salary requirements when evaluating offers in different regions.