Gross-Up Calculator

By Mustafa Bilgic · Updated 2026-06-01

This gross-up calculator works backward from a target net amount to find the gross pay an employer must issue so the worker takes home exactly that figure after taxes. Whether you are grossing up a bonus, a relocation payment, or a paycheck, this net to gross calculator uses the gross-up formula — gross = net ÷ (1 − total tax rate) — with 2026 withholding rates. Enter your desired take-home and the applicable tax rates below to see the grossed-up amount and the tax withheld.

This calculator provides estimates for educational purposes only and is not tax advice. Gross-ups use flat withholding rates, not your final marginal tax, which is reconciled when you file. Consult a qualified tax professional or official IRS guidance for your specific situation.

Gross-Up Calculator (2026)

Enter a net amount and press Calculate.

What Is a Gross-Up?

A gross-up is the extra amount an employer adds to a payment so that, after taxes are withheld, the employee receives a specific net figure. If a company promises a "$2,000 bonus" and wants the worker to actually keep $2,000, it must issue more than $2,000 to cover the withholding. The gross-up calculator finds that larger gross figure. It is the reverse of a normal paycheck calculation: instead of going gross → net, it goes net → gross.

The Gross-Up Formula

The math is a simple algebraic rearrangement. Because taxes are withheld as a percentage of gross, you cannot just add the tax to the net — that would under-shoot. Instead you divide:

StepFormula$2,000 net example (29.65% total)
1. Total tax ratefed + state + FICA22% + 0% + 7.65% = 29.65%
2. Net percentage1 − total rate1 − 0.2965 = 0.7035
3. Gross paynet ÷ net percentage$2,000 ÷ 0.7035 = $2,842.93
4. Tax withheldgross − net$842.93

So to deliver $2,000 net at a 22% federal supplemental rate plus 7.65% FICA, the employer issues $2,842.93; withholding takes $842.93, and the employee keeps exactly $2,000.

How to Gross Up a Bonus

Bonuses are the most common gross-up scenario. The IRS treats bonuses as "supplemental wages," which employers usually withhold at a flat 22% federal rate (37% on supplemental wages over $1 million), plus 7.65% FICA and any state supplemental rate. To gross up a bonus, set the federal rate to 22%, add your state rate if applicable, keep FICA checked, and enter your target net. The calculator returns the gross bonus the employer should run so you net the promised amount.

Gross-Up Examples (2026)

These examples use the 22% federal supplemental rate and 7.65% FICA, with and without a 5% state supplemental rate, to show the grossed-up amount for common target nets.

Desired netTotal rateRequired grossTax withheld
$1,00029.65% (no state)$1,421.46$421.46
$2,00029.65% (no state)$2,842.93$842.93
$5,00029.65% (no state)$7,107.32$2,107.32
$5,00034.65% (with 5% state)$7,651.11$2,651.11

Notice that adding a 5% state rate raises the gross needed for a $5,000 net from $7,107 to $7,651 — the higher the combined withholding, the more an employer must gross up to deliver the same take-home.

Why Employers Gross Up Payments

Employers gross up so an employee receives a clean, predictable amount. Common uses include signing and retention bonuses (so a "$10,000 bonus" actually nets $10,000), relocation reimbursements (so moving costs are fully covered after the payment is taxed), and award or prize payments. Without a gross-up, a promised payment shrinks by the withholding rate before it reaches the worker, which can feel like a broken promise. Grossing up makes the employee whole and keeps the offer transparent.

Gross-Up for Relocation and Moving Costs

Since the Tax Cuts and Jobs Act, most employer-paid moving expenses are taxable to the employee. So if a company reimburses $8,000 in moving costs, the employee owes tax on that $8,000 unless the employer grosses it up. To fully cover an $8,000 net relocation benefit at a 29.65% combined rate, the employer would issue about $11,372 — the calculator can compute this by entering $8,000 as the desired net. This is why relocation packages often include a "tax gross-up" line.

Gross-Up vs Normal Paycheck Math

A normal paycheck calculator starts with gross pay and subtracts taxes to find net. A gross-up calculator does the opposite: it starts with the net you want and finds the gross required. The key insight is that you must divide by (1 − rate), not multiply net by (1 + rate). Multiplying under-shoots because the added amount is itself taxed. For a 30% rate, the correct gross-up factor is 1 ÷ 0.70 = 1.4286, not 1.30 — a meaningful difference on large payments.

What the Gross-Up Rate Should Include

An accurate gross-up sums every percentage withheld from the payment:

The calculator lets you set the federal and state rates and toggle FICA so you can match your employer's exact withholding method.

Does Grossing Up Change My Final Tax?

No. A gross-up is based on flat withholding rates, not your final marginal tax. The grossed-up amount is added to your taxable income for the year, and your actual tax on it is reconciled when you file your return. If your real marginal rate is below the 22% supplemental rate, you may get part of the withholding back as a refund; if it is higher, you may owe a little more. The gross-up simply ensures you receive the intended net at the time of payment.

FICA and the Social Security Wage Base in a Gross-Up

FICA is part of most gross-ups at 7.65%. One nuance: the 6.2% Social Security portion only applies up to the $184,500 wage base for 2026. If an employee has already earned more than that for the year, the Social Security portion no longer applies to the bonus, so the gross-up rate would drop to just 1.45% Medicare plus income tax. For most workers receiving a mid-year bonus below the wage base, the full 7.65% applies, which is the calculator's default.

Key Takeaways: Gross-Up Calculator

How to Use This Calculator With Your Real Data

For the most accurate result, match the rates to how your employer actually withholds. Use 22% for a standard bonus federal rate (or 37% for supplemental wages over $1 million), add your state's supplemental rate (0% if your state has no income tax), and keep FICA checked unless you have already exceeded the Social Security wage base for the year. Enter the exact net you want to receive. The calculator then returns the precise gross your employer should run. Because the result depends on the rates you choose, confirming your employer's withholding method gives the most reliable figure.

Why 2026 Figures Matter for Accuracy

Withholding rates and the Social Security wage base change over time. Using 2026 figures matters because the FICA wage base ($184,500) and supplemental rates determine the gross-up factor. This page reflects the 2026 Social Security wage base, the standard 22% federal supplemental rate, and the 7.65% FICA rate. When the IRS and SSA announce the following year's figures, the inputs here will be updated so your estimate stays current.

Frequently Asked Questions

What is a gross-up calculator?

A gross-up calculator works backward from a target net (take-home) amount to find the gross pay an employer must issue so the employee receives that exact net after taxes are withheld. It is used for bonuses, relocation payments, and other situations where the employer wants the worker to keep a specific amount.

What is the gross-up formula?

The gross-up formula is: gross = net divided by (1 minus the total tax rate). For example, to deliver $2,000 net with a 22% federal supplemental rate plus 7.65% FICA (29.65% total), gross = 2,000 / (1 - 0.2965) = $2,842.93. The employer issues $2,842.93 so $2,000 lands after withholding.

How do I gross up a bonus?

Add up the applicable withholding rates - typically the 22% federal supplemental rate, 7.65% FICA, and any state supplemental rate - then divide the target net bonus by (1 minus that total rate). The calculator on this page does this automatically and shows the grossed-up amount and the tax withheld.

Why do employers gross up payments?

Employers gross up so the employee receives a clean, specific amount after taxes - common for signing bonuses, relocation reimbursements, and award payments. Without a gross-up, a promised '$5,000 bonus' would arrive as far less after withholding; grossing up makes the employee whole.

Is grossing up the same as my final tax?

No. A gross-up is based on flat withholding rates (like the 22% federal supplemental rate), not your final marginal tax. When you file your return, your actual tax on the bonus is reconciled, so you may get some withholding back or owe a little more depending on your total income.

What tax rate is used to gross up a bonus?

Most bonus gross-ups use the IRS flat 22% federal supplemental withholding rate (37% on supplemental wages over $1 million), plus 7.65% FICA, plus any state supplemental rate. This calculator lets you set each rate so you can match your employer's method.