About the Net to Gross Calculator
This net to gross calculator (often called a gross-up calculator) works backwards from the amount someone should actually receive. Enter the target net payment and the withholding rates that apply, and it returns the gross amount to pay so that, after taxes are withheld, exactly the target lands in the recipient’s account.
Payroll teams use grossing up for bonuses, relocation and moving allowances, sign-on awards, gift cards and settlements where the company promises a specific net figure. Employees can also use it to see what gross salary they need to hit a take-home goal.
In the US, bonuses paid separately from regular wages are usually withheld at the 22% federal supplemental rate (37% on supplemental wages above $1 million), plus 7.65% FICA (6.2% Social Security up to the 2026 wage base of $184,500 and 1.45% Medicare, with an extra 0.9% withheld on wages above $200,000) and any state or local rates. These are the 2026 rates in IRS Publication 15. Because the taxes are calculated on the grossed-up amount itself, you cannot simply add the tax percentage to the net — the formula divides by (1 − total rate).
With the default inputs, the gross amount to pay is $1,530.22. Change any value above to recalculate instantly.
How to use the net to gross calculator
- 1Enter the net amount the recipient should receive.
- 2Enter the federal rate — 22% for most supplemental payments like bonuses.
- 3Add state and local withholding rates.
- 4Choose which FICA taxes apply to the payment.
- 5Pay the gross amount shown; withholding will leave exactly the target net.
Formula and method
Withholding is a percentage of the gross payment, so the net equals Gross × (1 − t) minus any flat deductions, where t is the sum of the federal, state, local and FICA rates as a decimal. Solving for gross gives Gross = (Net + fixed) ÷ (1 − t). The gross-up factor 1 ÷ (1 − t) lets you gross up any amount at the same rates with one multiplication.
This is why grossing up costs more than adding the tax rate: the tax is charged on the extra money too. At a 34.65% combined rate the factor is about 1.53, so delivering $1,000 net costs $1,530.22, not $1,346.50.
- Net
- Amount the recipient should receive
- t
- Combined withholding rate (federal + state + local + FICA)
- 1 ÷ (1 − t)
- Gross-up factor
Worked examples
$1,000 net bonus with 22% federal, 5% state and FICA
The combined rate is 22% + 5% + 7.65% = 34.65%, so gross = $1,000 ÷ 0.6535 = $1,530.22. Withholding of $530.22 leaves exactly $1,000.
$5,000 net in a state with no income tax
With 22% federal and 7.65% FICA the combined rate is 29.65%. Dividing $5,000 by 0.7035 gives a gross bonus of $7,107.32.
High earner over the Social Security wage base
At 37% federal, 9.3% state and 2.35% Medicare the combined rate is 48.65%, so each net dollar costs about $1.95. Delivering $2,500 net requires $4,868.55 gross.
Frequently asked questions
What does gross up mean?+
Grossing up means increasing a payment so that after taxes are withheld the recipient receives a specific net amount. The employer effectively pays the tax on the payment as well as the tax on that extra money.
How do you calculate a gross-up?+
Divide the desired net amount by one minus the total tax rate. For a $500 net payment at a 30% total rate: $500 ÷ 0.70 = $714.29 gross, which leaves $500 after $214.29 of withholding.
What tax rate is used for bonuses?+
US employers can withhold federal tax on supplemental wages at a flat 22%, or 37% on the portion of supplemental wages over $1 million in a year. Social Security, Medicare and state taxes are withheld as usual.
Is the gross-up itself taxable income?+
Yes. The full grossed-up amount is taxable wages reported on the W-2. The withholding is a prepayment, so the recipient’s final tax bill may be higher or lower depending on their total income.
Why not just add the tax percentage to the net?+
Because the tax is charged on the whole gross payment, including the extra you add. Adding 30% to $1,000 gives $1,300, but 30% withholding on $1,300 is $390, leaving only $910.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.