Stanley Kirk Burrell, better known professionally as MC Hammer, earned most of his wealth as a prominent rapper during the late 80s and early 90s. Hammer released his breakthrough LP, Please Hammer, Don’t Hurt Em’ in 1990, which became the first hip-hop album to reach certified diamond status. The album sold over 10 million copies and featured Hammer’s smash hit “U Can’t Touch This.” However, the hip-hop wordsmith experienced a highly publicized financial downfall in 1996, when he filed for bankruptcy. Following the loss, MC Hammer’s net worth plummeted. Despite his earlier obstacles, the 63-year-old still released several albums. However, they weren’t as commercially successful as his past records. Let’s take a look at the rapper’s net worth to examine how he experienced an economic setback and then made a grand comeback. 

MC Hammer leaned into creative expression from a young age 

Per Biography.com, rap artist MC Hammer was born and raised in Oakland, California. His father, Lewis Burrell, worked as a warehouse supervisor before developing a gambling addiction that almost devastated the family. At age 11, the rising superstar regularly earned money by performing original dance routines outside of the Oakland Coliseum during the A’s home games. Meanwhile, his family sold stray baseballs outside the stadium. 

While dancing, Hammer eventually caught the attention of the Oakland A’s team owner Charles Finley, who hired him as a batboy. During his time with the Oakland A’s, Hammer earned the nickname “MC” for being a “Master of Ceremonies.” Hammer performed at various venues and clubs while the A’s were out of town. His name “Hammer” is due to his similarities with baseball legend Hank “Hammer” Aaron. After graduating high school, he worked as an aviation storekeeper for three years in the Navy.

How did MC Hammer pursue his rap career? 

While working at the Oakland Coliseum, MC Hammer started performing at small venues around the Oakland area. After a record deal didn’t work out, Hammer borrowed $20,000 from former Oakland A’s players Mike Davis and Dwayne Murphy. With the money borrowed, Hammer launched his own record label, Bust It Productions. The name soon changed into Bustin’ Records. He released two albums, Feel My Power (1987) and Let’s Get It Started (1988). With the former selling 60,000 copies, Capitol Records took notice, and the rising rapper was signed in 1988. Through the deal, Hammer secured around $1.7 million in advance, as Celebrity Net Worth notes.

In 1990, Hammer released his biggest hit, “U Can’t Touch This.” The music video featured his signature dance, “The Hammer Dance,” which involves shuffling from side to side on tiptoes. According to Billboard, the song iconically sampled Rick James’ “Super Freak” and peaked at #1 on the Billboard Hot Rap Songs chart and #8 on the Billboard Hot 100. His album, “Please Hammer, Don’t Hurt ‘Em,” was No. 1 for 21 weeks. The hip-hop record earned the rapper two Grammy Awards, including “Best R&B Song” and “Best Rap Solo Performance.” He also won two MTV Video Music Awards and other accolades. Following the success of his breakout song, Hammer’s net worth continued to ascend in the early ’90s. 

The rapper experienced a publicized bankruptcy in 1996

In 1996, Hammer filed for bankruptcy due to excessive spending. His peak earning year was 1991, per Celebrity Net Worth. He brought in $33 million from record sales, endorsements and touring revenue. In today’s money, $33 million is estimated to be around $70 million. However, his poor spending habits led him to accumulate around $10 million worth of debt between 1990 and 1996. According to CEO Today, some of his expensive purchases included a $12 million Fremont, CA mansion, a $500,000-per-month 200-person entourage, expensive shopping sprees and lavish stage productions. Hammer’s economic hardship eventually forced him to list his 12.5-acre estate for $6.8 million, but the rapper sold it for $5.3 million. In 2012, the home sold again for $5.4 million. 

Hammer’s bankruptcy filings displayed a $500,000 personal loan from former NFL icon Deion Sanders and a $500,000 loan to a personal lawyer. Although he had paid off most of his debt, a court ruled that Hammer still owed the IRS $800,000 in back taxes in 2013. According to Hot New Hip Hop, the IRS demanded an extra $1.4 million in penalties from the veteran rapper. In 2014, he filed legal documents asking a federal judge to block the IRS from collecting more money, per TMZ reports. Hammer doubled down on paying $7 million in expected dues in 2007. 

California native went on to become a respected investor in Silicon Valley 

In a previous interview with Oprah Today, Hammer spoke about technological investments. His interest in technology began during the 1990s while he was making music videos. The rapper recognized the online potential of music videos. Hammer’s interest increased in ‘94 until the development of YouTube in 2005. However, the launch of the global sharing platform kicked off his tech investing career. In 2007, he co-founded the dance website, DanceJam, with Anthony Young and Geoffrey Arone. The hip-hop star served as the Chief Strategy Officer of the company until its closing in 2011.

Hammer now partners with organizations and companies intersecting technology, music and marketing in Silicon Valley. His early investments included X (formerly known as Twitter), Square and Bump Technologies. Additionally, the now 63-year-old assisted Pandora founder Tim Westergreen in his meeting preparation with music executives while the company was still named Savage Beast via Billboard. He also offered marketing advice to Salesforce. 

What is MC Hammer’s net worth? 

MC Hammer’s net worth has fluctuated throughout his music career, riddled with financial challenges. In 1991, Hammer’s net worth was $33 million at the peak of his rap success. This included record sales, television appearances and endorsements, alongside other ventures.

However, this number dropped following his excessive spending habits. He filed for bankruptcy in 1996, paying around $13 million in liabilities. The veteran rapper slowly restored his net worth by investing in tech companies and performing his timeless hits at music venues. According to Celebrity Net Worth, MC Hammer is valued at an estimated $2 million. 

Frequently Asked Questions 

How much does MC Hammer owe the IRS? 

After filing for bankruptcy in 1996, the rapper paid the IRS over $13 million in debt. However, in 2013, reports indicate that the IRS ordered Hammer to pay $800,000 in unpaid taxes for the years 1996 and 1997. The IRS claimed Hammer only covered his debt from 1993 to 1995, but failed to pay his debt from 1996 and 1997. Although the rapper tried to appeal the case, a federal judge dismissed his rebuttal, and Hammer paid $800,000 in back taxes to the IRS. As of today, no recent reports suggest that Hammer still owes the IRS money. 

What is MC Hammer doing now? 

Currently, MC Hammer lives in a ranch-style house with his wife, Stephanie, in Tracy, California. The couple shares five kids. In 2009, the MC rapper starred in an A&E series with his family called Hammertime. The show ran from 2009-2010. Hammer is relatively active on social media and continues to invest in tech companies. Additionally, he performs at music venues.