To convert a salary to an hourly rate, divide your annual salary by 2,080, the number of work hours in a year at 40 hours a week for 52 weeks. A $45,000 salary works out to about $21.63 an hour, and an $85,000 salary to about $40.87 an hour.
That simple salary to hourly formula is a good starting point, but it assumes a standard full-time schedule and says nothing about taxes. Below you will find how to adjust for other schedules and how to find what you actually keep for each hour of work.
The basic formula
Hourly rate = annual salary ÷ (hours per week × weeks per year)
For a standard full-time job, that is 40 × 52 = 2,080 hours. Paid holidays and vacation are already included, because a salary pays you for those weeks too.
You can also work from a paycheck. Divide gross pay per check by the hours that check covers: 40 for a weekly check or 80 for a biweekly check.
Salary to hourly conversion table
The same salary gives a different hourly figure depending on your schedule. This table shows three common ways to count.
| Annual salary | 40 hrs × 52 weeks (2,080) | 37.5 hrs × 52 weeks (1,950) | 40 hrs × 50 weeks (2,000) |
|---|---|---|---|
| $45,000 | $21.63 | $23.08 | $22.50 |
| $85,000 | $40.87 | $43.59 | $42.50 |
| $100,000 | $48.08 | $51.28 | $50.00 |
When to use each column
- 2,080 hours: the standard for comparing a salaried job to an hourly one with paid time off.
- 1,950 hours: for jobs with a 37.5-hour week, common where a lunch break is unpaid.
- 2,000 hours: a quick estimate if you want to count only the weeks you actually work, with two weeks off. This is useful when you compare a salary against hourly or contract work that has no paid time off.
Your real hourly rate if you work longer hours
Many salaried workers put in more than 40 hours. If you regularly work 50 hours a week on an $85,000 salary, your effective rate is $85,000 ÷ 2,600 hours, about $32.69 an hour, not $40.87.
Whether you get paid extra for those hours depends on your classification. Under the Fair Labor Standards Act, non-exempt employees must get at least 1.5 times their regular rate for hours over 40 in a workweek, even if they are paid a salary. Exempt employees are not owed overtime. Being salaried does not automatically make you exempt: the rules look at your pay and your job duties. The Department of Labor's overtime pages explain the tests, and our guide on how overtime pay is calculated covers the math.
What you keep per hour after taxes
Your hourly rate before tax is only part of the picture. To find your take-home hourly rate, divide your annual net pay by your annual hours.
Here is an $85,000 salary for a single filer, paid weekly, with a standard W-4 and no benefit deductions. Figures are 2026 estimates from the PaycheckHubs paycheck calculator.
| Item | Virginia | Texas |
|---|---|---|
| Gross weekly pay | $1,634.62 | $1,634.62 |
| Federal income tax | $189.81 | $189.81 |
| Social Security | $101.35 | $101.35 |
| Medicare | $23.70 | $23.70 |
| State income tax | $78.33 | $0.00 |
| Net weekly pay | $1,241.43 | $1,319.76 |
| Annual take-home pay | $64,554 | $68,628 |
| Take-home per hour (2,080 hrs) | $31.04 | $32.99 |
So $40.87 an hour before tax becomes about $31 an hour after tax in Virginia, and about $33 in Texas, which has no state income tax. Virginia's top rate of 5.75% starts at just $17,000 of taxable income, so most full-time workers there pay that rate on most of their pay.
Benefit deductions lower the number further. If you contribute to a 401(k) or pay health premiums, run those through the calculator to see your true per-hour take-home.
Using hourly figures to compare jobs
Converting salary to hourly is most useful when you are comparing different kinds of offers. A few things to line up before you compare:
- Paid time off. A salaried job usually pays for holidays and vacation. An hourly job may not, so an hourly rate that looks higher can produce less annual income.
- Overtime. An hourly or non-exempt job that pays overtime may earn more in busy weeks than an exempt salaried job.
- Benefits. Health insurance costs and retirement matches can be worth more than a small difference in pay.
- State taxes. As the table shows, the same pay can mean different take-home amounts in different states.
For a structured method, see how to compare job offers by take-home pay and our look at salary vs hourly pay. Going the other direction? Read how to calculate annual salary from an hourly wage.
Frequently Asked Questions
How many work hours are in a year?
The standard figure is 2,080 hours, based on 40 hours a week for 52 weeks. Payroll and HR teams commonly use it to convert between salary and hourly pay.
Is $85,000 a year good hourly pay?
$85,000 equals about $40.87 an hour before tax on a 40-hour schedule. Whether it is good depends on your field, location and cost of living.
Should I count vacation when converting salary to hourly?
Use 2,080 hours if your vacation is paid, since your salary covers those weeks. Use fewer hours if you want the rate for hours actually worked.
Do salaried workers get paid overtime?
Only if they are non-exempt under the Fair Labor Standards Act. Exemption depends on salary level and job duties, so check the Department of Labor's guidance for your role.
Sources
- U.S. Department of Labor: Overtime Pay
- U.S. Department of Labor: Fair Labor Standards Act
- IRS Publication 15-T, Federal Income Tax Withholding Methods
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.