In the United States, since 2009 to at least 2020, federal minimum wage has remained at $7.25.
If an individual were to work an average of 22 days per month, at 8 hours per day x $7.25 per hour = $1276 per month.
This multiplied by 12 months is $15,312 annually.
The 2020 tax bracket for this range of income is 12%.
Therefore, $1276 x 0.12 = $153.12
$1276 - $153.12 (taxes) = $1122.88 after taxes each month.
In the United States, the cost of living is among a standard and only goes up from that standard.
If one were fortunate to receive a very minimal cost of living, one's expenses might look similar to as follows:
(rent: 550+, food: 350+, fuel: 150+, insurance: 100+, phone: 50+, vehicle repairs: 100+, utilities: 100+, extra: 100+)
One's very under-estimated expenses amount to more than one's full time monthly income, even before being taxed.
If one's monthly expenses equally matched their monthly income AFTER taxes ($1122.88:$1122.88), the individual would be required to earn an additional $153.12 to pay their due taxes of $153.12.
If the individual labored to earn the additional $153.12 to pay their owed taxes, they would now be taxed an additional 10% per the tax bracket.
$153.12 x 0.10 = $15.312.
The individual would be required to earn the additional $15.312 to be taxed another 10% on this, down to the penny and to the Nth of the penny.
Return to top of page