Making $42 an hour sounds pretty sweet, right? Honestly, it’s that weird middle ground where you feel rich one day and then realize you’re still budgeting for groceries the next. If you’ve just landed a gig at this rate or you're eyeing a promotion, you’re probably asking yourself one big question: How much is 42 an hour annually?
The short answer is $87,360.
But life isn’t lived in gross numbers. Uncle Sam, your state’s governor, and that pesky health insurance premium are all waiting in line to take a bite out of that "annual" figure before it ever hits your bank account. If you're looking at your 2026 tax brackets, things get even more interesting.
The Raw Math of $42 per Hour
Let's break down the basic math. Most people assume a standard work year of 2,080 hours. That's 40 hours a week for 52 weeks. If you never take an unpaid day off—good luck with that—you’re looking at:
- Weekly: $1,680
- Bi-weekly: $3,360
- Monthly: $7,280
- Yearly: $87,360
That $87,360 figure is your "gross income." It looks great on a mortgage application. It looks less great when you see your actual "net" take-home pay on a Friday afternoon.
What if you work less?
Not everyone hits that 2,080-hour mark. Maybe you’re a contractor or you work in a field like nursing where shifts fluctuate. If you take two weeks of unpaid vacation, your annual total drops to $84,000. It’s a $3,360 "vacation tax" you pay yourself.
Taxes: The $20,000 Elephant in the Room
Here is where the 2026 tax reality kicks in. For the 2026 tax year (the ones you'll file in early 2027), federal brackets have shifted slightly due to inflation adjustments.
If you are filing as Single, your $87,360 income doesn't just get taxed at one flat rate. It's a ladder.
You'll pay 10% on the first $12,400.
Then 12% on everything up to $50,400.
Finally, the rest—about $36,960 of your income—falls into the 22% bracket.
Don't forget FICA. Social Security and Medicare take a flat 7.65% off the top. That’s another $6,683 gone.
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The Take-Home Reality
If you live in a state with no income tax—think Florida, Texas, or Washington—your take-home pay might hover around $68,000 to $70,000.
But if you’re in a high-tax state like Maryland or California? Ouch. Between state income tax and local county taxes (like the ones in Montgomery County, MD), you could easily lose another $4,000 to $6,000. Suddenly, your $87,360 salary feels a lot more like $62,000.
Lifestyle: What Does $42 an Hour Actually Buy?
In 2026, the "middle class" definition has stretched. According to data from the Bureau of Labor Statistics and recent cost-of-living trackers, $87k is a solid, respectable wage. It’s well above the US median household income, which has been hovering around $75,000 lately.
But location is everything.
In a city like Des Moines or San Antonio, $42 an hour makes you a king. You’re looking at a nice three-bedroom house, a reliable SUV, and maybe even a couple of vacations a year without breaking a sweat.
In San Francisco or New York City? You’re basically a "struggling professional." You might still have roommates, or you're spending 50% of your paycheck on a 500-square-foot studio.
The Monthly Budget Breakdown (Illustrative Example)
Let's look at a realistic monthly spend for someone making $42/hour, assuming a net take-home of roughly **$5,400** after taxes and health insurance:
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- Rent/Mortgage: $1,800 (The 30% rule is getting harder to follow)
- Utilities & Internet: $350
- Car Payment/Insurance: $600
- Groceries: $500 (Inflation has been a beast, hasn't it?)
- Dining Out/Fun: $400
- Student Loans/Debt: $400
- Savings/401k: $1,000
- Miscellaneous: $350
You're left with a little breathing room, but you aren't exactly buying a yacht.
Is $42 an Hour "Good"?
Honestly, it depends on your "why."
If you’re a single person with no kids, $42 an hour is fantastic. You can max out your Roth IRA, build an emergency fund, and still afford the good coffee.
If you’re the sole breadwinner for a family of four? It’s tight. You’re likely living paycheck to paycheck in most metropolitan areas.
The Comparison Trap
It’s easy to look at someone making $60 an hour and feel behind. But remember: $42 an hour is roughly **$336 per day**. If you save just 10% of that, you’re putting away over $8,000 a year. That’s more than most Americans have in their entire savings account.
Moving the Needle: How to Do More with $87k
Since we know how much is 42 an hour annually, the next step is making that money work.
- Check your withholdings. If you’re getting a $5,000 tax refund every year, you're giving the government an interest-free loan. Adjust your W-4 to get more in your monthly paycheck.
- Automate your "Future Self" payment. Before you pay the electric bill, send $200 to a high-yield savings account. You won't miss it if you never see it.
- Watch the "Lifestyle Creep." When you go from $30 to $42 an hour, it's tempting to upgrade everything. Resist the urge to buy a new car just because you can afford the monthly payment.
Final Thoughts on the $42 Hourly Wage
At the end of the day, $87,360 is a powerful number. It’s a salary that offers stability and choices. You aren't just surviving; you're building.
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To maximize this income, your next move should be a deep dive into your specific state's tax code and local cost of living. Use a localized paycheck calculator to find your exact "net" and then build a 50/30/20 budget—50% for needs, 30% for wants, and 20% for savings and debt. This ensures your hourly wins turn into long-term wealth.
Next Steps for You:
- Calculate your exact take-home pay by using a 2026-specific tax calculator for your specific zip code.
- Review your employer's 401k match. If they match 4% and you aren't contributing, you're effectively leaving about $3,500 of "free money" on the table.
- Audit your fixed expenses. If your rent or mortgage is exceeding 35% of your $5,400 take-home, look for ways to trim utilities or insurance costs to balance the scales.