Gross-Up Calculator - Net to Gross Pay Calculator

How to use this tool

Choose the direction: Net -> Gross (gross-up) or Gross -> Net.
Enter the pay amount.
Enter the combined tax rate (federal + state + FICA).
See gross pay, net pay, and total taxes withheld.

What is a gross-up?

A gross-up is when a company pays an employee an additional amount to cover the taxes on a payment, so the employee receives the full intended net amount. Instead of the employee paying tax out of a bonus, the employer calculates and pays the tax on their behalf.

Gross-up formula

The formula to calculate the required gross payment from a desired net amount:

Gross = Net ÷ (1 − Combined Tax Rate)

Example: you want an employee to net $5,000 and the combined tax rate (federal + state + FICA) is 30%. Gross = $5,000 ÷ (1 − 0.30) = $5,000 ÷ 0.70 = $7,142.86. The company pays $7,142.86; the employee nets $5,000 after $2,142.86 in taxes.

Supplemental withholding

For supplemental wages (bonuses, awards, relocation payments), the IRS allows a flat withholding rate of 22% (as of 2024) for amounts up to $1 million, rather than calculating from the employee's W-4 rate. This simplifies gross-up calculations for one-time payments.

Common gross-up use cases

Relocation reimbursements: employers gross up moving expense reimbursements so employees aren't penalized for relocating.
Executive compensation: some executive contracts include tax gross-ups on perquisites (perks) or severance payments.
Prize and award payments: companies gross up awards so recipients receive the full stated prize value.
Gift cards and non-cash benefits: taxable fringe benefits may be grossed up so the employee's net benefit equals the stated value.

Frequently asked questions

What does "gross-up" mean?

Gross-up means increasing a net (after-tax) payment to a larger gross (pre-tax) amount so the recipient receives exactly the intended net figure after taxes are withheld. Employers use this when they want to cover an employee's tax on a bonus or expense reimbursement.

What is the gross-up formula?

Gross = Net ÷ (1 − combined tax rate). For example, to deliver $7,000 net at a 30% combined tax rate: Gross = $7,000 ÷ 0.70 = $10,000.

What tax rate should I use?

Use your combined marginal rate: federal income tax + state income tax + FICA (Social Security + Medicare). For a supplemental bonus in the US, the federal flat withholding rate is 22% (or 37% above $1 million); add your state rate and FICA for the full combined rate.