Is Going Back to Work Worth It? Do the Real Math First
The short answer
A $25 an hour job with full-time daycare is really worth about $11 an hour after taxes, childcare, and commuting. With school-age kids and part-time hours, a $22 an hour job can clear about $12.40 an hour. The sticker rate tells you almost nothing; run the full math.
Is going back to work worth it? For a parent paying full-time daycare, a $25-an-hour job is really worth about $11 an hour once taxes, childcare, and commuting come out. But with school-age kids and part-time hours, a $22-an-hour job can clear about $12.40 an hour of real gain, for far fewer hours. The sticker rate on the job offer tells you almost nothing. The math below tells you the rest.
Educational information, not financial or tax advice. Updated September 2026.
Which costs do most people leave out?
When people weigh a job offer against staying home, they usually subtract one thing: childcare. The real list is longer. Every line below comes straight out of the second paycheck before it ever reaches you.
Federal income tax. The IRS taxes income in slices called brackets. The first slice is taxed at 10%, the next slice at 12%, and so on. Before any of that, a single filer gets a standard deduction, which is a chunk of income the IRS lets you earn tax-free. For 2026 that chunk is $16,100, according to the IRS.
Social Security and Medicare taxes. These come out of every paycheck, no exceptions. Together they are called FICA, and the employee share is 7.65% of wages: 6.2% for Social Security plus 1.45% for Medicare, per the IRS. On a $52,000 salary, that is $3,978 a year, gone before you see it.
State income tax. This one swings wildly. Some states charge nothing. Others take over 10%. The examples below assume 5%. Your state changes everything, which is exactly why you should run your own numbers at the end.
Childcare. This is the big one, and it is bigger than most people think. Full-time care for one child averaged $13,128 a year in 2024, up 35.5% since 2019, according to Child Care Aware of America. In 85 of the 100 largest US metros, care for an infant plus a 4-year-old costs more than rent, per LendingTree's analysis. A Care.com survey of 3,000 parents found the average family spends 22% of household income on childcare.
Commuting. Gas, tolls, wear on the car. The IRS sets a standard mileage rate, and it is 76 cents a mile right now. It rose from 72.5 cents mid-year, per the IRS. A 20-mile round trip, 250 workdays a year: 5,000 miles, or $3,800.
The nickel-and-dime costs. Work lunches, clothes, the coffee you buy because the office machine is terrible. Call it $100 a month and you are probably being kind to yourself.
Miss any one of these and the job looks better than it is. Miss three and you are deciding with fantasy numbers.
Is going back to work worth it? Two real examples
Same family, two different job offers. All tax figures use 2026 federal brackets for a single filer taking the standard deduction. State tax assumed at 5%. Your numbers will differ. That is the point of the exercise.
Example 1: $25 an hour, full time, one toddler in daycare. Gross pay: $25 x 40 hours x 52 weeks = $52,000.
- Federal income tax: about $4,060
- Social Security and Medicare: $3,978
- State income tax (5%): $2,600
- Daycare, one child: $13,128
- Commute: $3,800
- Work costs: $1,200
Total taken back: $28,766. Real gain: $52,000 minus $28,766 = $23,234 a year. Spread over 2,080 working hours, that is about $11 an hour. Less than half the sticker rate.
Example 2: $22 an hour, 30 hours a week, school-age kids. Gross pay: $22 x 30 hours x 52 weeks = $34,320. The kids need after-school care, not full daycare. Assume $400 a month, or $4,800 a year.
- Federal income tax: about $1,938
- Social Security and Medicare: $2,625
- State income tax (5%): $1,716
- After-school care: $4,800
- Commute (4 days a week): $3,162
- Work costs: $800
Total taken back: $15,041. Real gain: $34,320 minus $15,041 = $19,279 a year. Over 1,560 working hours, that is about $12.40 an hour.
Read that again. The job with the lower pay rate delivers the higher true hourly rate, and 520 fewer working hours a year. Full-time daycare is what crushes Example 1. It is the single biggest line in the whole calculation, bigger than all three taxes combined.
| Example | Sticker rate | Real rate after taxes, childcare and commuting |
|---|---|---|
| Full-time job, full-time daycare | $25 an hour | About $11 an hour |
| Part-time job, school-age kids | $22 an hour | About $12.40 an hour |
When does going back to work pay off?
The math has a clear shape. Going back to work pays best when the expensive lines shrink: kids in school instead of daycare, part-time hours that dodge full-time care costs, a short commute or remote work, a state with low income tax. It pays worst when you are buying 50 weeks of full-time infant care at today's prices. Infant care now costs more than in-state college tuition in 41 states plus DC, according to Child Care Aware of America.
Two things the numbers do not capture. First, career continuity has value that never shows up in year-one math: skills, raises, retirement contributions. Second, staying home has value that never shows up either: time with your kids in the years you do not get back. Neither belongs in a spreadsheet. Both belong in the decision.
The trap is not choosing wrong. The trap is choosing on the sticker rate. A $25-an-hour offer and an $11-an-hour reality are two different jobs. You deserve to know which one you are accepting.
If you are weighing self-employment instead of a W-2 job, the tax side works differently. Here is the plain-English guide to freelancer quarterly taxes.
How do you run your own numbers?
My examples used national averages and round assumptions. Yours will not match. Your state tax, your daycare quote, your commute, your filing status. Plug in the real figures and the answer changes. The Second Income Reality Check spreadsheet runs this exact subtraction on your numbers: salary in, every cost line out, true hourly rate at the bottom.
Once you know your real number, give it a job. Here is how to aim extra money at debt the smart way.
FAQ
What is a $25-an-hour job really worth after taxes, childcare, and commuting? About $11 an hour. On a $52,000 salary, $25 x 40 hours x 52 weeks, taxes, Social Security and Medicare, daycare for one toddler ($13,128), commuting ($3,800), and work costs take back $28,766. The real gain is $23,234 a year, spread over 2,080 working hours. Less than half the sticker rate.
Can a lower-paying job actually have a higher real hourly rate? Yes. A $22-an-hour job at 30 hours a week with school-age kids pays $34,320 a year; after $15,041 in taxes, after-school care ($4,800), commuting, and work costs, the real gain is $19,279, about $12.40 an hour, across 520 fewer working hours. Full-time daycare is what crushes the $25-an-hour example; it's the single biggest line in the calculation.
What hidden costs should I subtract from a second income? Federal income tax (the 2026 single-filer standard deduction is $16,100), FICA at 7.65%, state income tax (the article assumes 5%), childcare, full-time care for one child averaged $13,128 a year in 2024, commuting (76 cents a mile; $3,800 for a 20-mile round trip over 250 days), and about $100 a month in work costs.
When does going back to work pay off the most? When the expensive lines shrink: kids in school instead of daycare, part-time hours that dodge full-time care costs, a short commute or remote work, and a state with low income tax. It pays worst when you're buying 50 weeks of full-time infant care, which now costs more than in-state college tuition in 41 states plus DC.
How do I calculate my own true hourly rate? Plug in your real figures, your state tax, your daycare quote, your commute, your filing status, because the article's examples use national averages and round assumptions. The Second Income Reality Check spreadsheet runs this exact subtraction on your numbers: salary in, every cost line out, true hourly rate at the bottom.
Sources
- Internal Revenue Service, "IRS releases tax inflation adjustments for tax year 2026" (IR-2025-103, Oct. 9, 2025), 2026 standard deduction ($16,100 single) and federal tax bracket thresholds; supports the tax figures in the worked examples. https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill
- Internal Revenue Service, "Topic no. 751, Social Security and Medicare withholding rates", employee FICA rate of 7.65% (6.2% Social Security + 1.45% Medicare). https://www.irs.gov/taxtopics/tc751
- Internal Revenue Service, "Standard mileage rates", business standard mileage rate of $0.76/mile for July–Dec 2026 ($0.725/mile for Jan–June 2026); supports the commute cost math. https://www.irs.gov/tax-professionals/standard-mileage-rates
- Child Care Aware of America, "More Child Care Programs, Less Access: The Child Care Affordability Gap Widens" (2024 Price & Supply report press release), national average childcare price $13,128/year (2024), up 35.5% from 2019; infant care costs more than in-state college tuition in 41 states + DC. https://info.childcareaware.org/media/more-child-care-programs-less-access-the-child-care-affordability-gap-widens
- LendingTree, "Study: Child Care Vs. Rent in Largest US Metros" (updated Nov 17, 2025; analysis of Child Care Aware of America + HUD data), childcare for an infant + 4-year-old exceeds rent in 85 of the 100 largest US metros. https://www.lendingtree.com/debt-consolidation/child-care-vs-rent-study/
- Care.com, "New Care.com Report Uncovers the Troubling State of Parental Well-Being Amid America's Care Crisis" (Jan 29, 2025; 2025 Cost of Care Report, 3,000 parents surveyed Nov 2024), average parent spends 22% of household income on childcare; 57% paid at least $9,600 in 2024. https://www.care.com/about/press/new-care-com-report-uncovers-the-troubling-state-of-parental-well-being-amid-americas-care-crisis/
About Kollaz, Kollaz makes smart financial tools for modern money. This article's companion is the Second Income Reality Check spreadsheet, plug in your salary, taxes, childcare, and commute to find your true hourly rate before you decide.