Do you want to decide if you can survive with $50,000 income a year in California? Get the hourly breakdown and Tax considerations in detail here. There are various factors to consider when determining the exact amount of salary you need an hour to lead a basic life in california.
In California, housing consumes a large chunk of your expenses. If you need to rent a one-bedroom apartment It can range from $1,500 to $3,000+ monthly charge minimum. Don’t go for furnished ones. It may cost you more.
Food & groceries for a single person can cost around $300 – $500 per month.
Basic amenities & utilities can cost up to $100-$200 per month for basic survival necessities like Electricity, water, gas, and internet.
Transportation: Opt for sharing public transports or free transport facilities. Carpooling can be the best idea. Passes for Public transport or gas for a car can add up to $50-$100+ per month.
Minimum basic Healthcare/ Health Insurance: For an adult $100 to $200 is needed for health insurance. Better to opt for health insurance cards from your employer and get details of other benefits they provide as ad-ons.
Miscellaneous add-ons: Wrong parking bills, taxes, Phone bill, toiletries, clothing, skin and hair care can be another $100-$200 per month.
If you’ve recently shifted to California or a new job holder. You would definitely want to know in and out of the living standards within a salary of $50,000 a year. California is a land of sunshine, luxury and decent living. Living in California, the land of sunshine and opportunity, comes with a price tag. But with a salary of $50,000 a year, can you make ends meet, and what does that translate to hourly after taxes?
Let’s take a hourly based sneak peak into the complete lifestyle in California and know how much tax to pay with $50,000 per annum-
The Hourly Breakdown:
Let’s calculate $50,000 annual wage. How much is it hourly?
Gross Pay per Hour: $50,000 / (52 weeks/year * 40 hours/week) = $23.81 per hour
California’s Tax Slab for $50,000 Income per Year –
Not everyone is aware of the Californian tax slab. Let’s address the progressive tax system. In California, Tax is higher for payee with higher income. Let’s check the simplified breakdown:
Tax Slab
| Income Range | Tax Rate (%) |
| Up to $5,00,000 | Exempt |
| $5,00,001 – $10,00,000 | 1% |
| $10,00,001 – $20,00,000 | 12% |
| $20,00,001 – $50,00,000 | 22% |
| Above $50,000,000 | 37% |
For $50000 wage a year, you are exempted from any tax in Federal
State Income Tax in California
In California, Filing status and deductions are related to your salary.For a single filer earning $50,000, it could be around 6-9%.
Factoring in Additional Taxes:
Mandatory deductions total around 7.65% of your gross pay towards medical and security.
The Real Tax levied
Calculating all taxes like federal income tax, state income tax, and social security/Medicare deductions. If your in-hand pay in California is $50,000 salary then:
Net Pay per Hour: $23.81 (gross pay) * (1 – 0.22 – 0.08 – 0.0765) = around $15.00 per hour
How much Salary is Sufficient
$2,500 monthly take home can be considered basic and sufficient to survive in California. We are taking in terms of basic health care, transport, food & groceries, Internet etc,.
To reach this amount annually, you’d need a pre-tax salary of:
Minimum Salary: $2,500/month * 12 months = $30,000 annually
The Realistic Range to live in California:
For a comfortable standard of living, you need –
Moderate Range: $40,000 – $60,000 annually
The Bottom Line:
A $50,000 salary in California translates to roughly $15.00 per hour after taxes. That may be sufficient to survive but may not provide all the necessary items you require. Living a luxurious life will become a dream. If you have dependents or sick partners, then this $15 per hour salary is too low. Try to climb up the ladder and get more assistance in getting a better hourly salary. While working on the future, try to reduce current spending habits. Gain financial independence soon with the right tactics. Save money by room-sharing, using public transport etc.