Gross-Up Calculator 2026
Find the gross pay needed to achieve a specific net amount after all taxes.
Required gross pay
$62,697
1.25× gross-up factor
Total tax
$12,697
Based on 2026 tax rates. Uses an iterative approach to find the gross that yields your target net.
How it works
Grossing up is the reverse of a paycheck calculation. Instead of "what's my net from this gross?", it answers "what gross do I need for this net?"
Because the tax on the gross-up itself must also be covered, a simple formula doesn't work. This calculator uses an iterative method: estimate gross, compute taxes, compare net to target, and adjust until it converges.
The gross-up factor tells you the multiplier: a factor of 1.45× means you need to pay $1.45 in gross for every $1.00 in net.
Example: Grossing up a $5,000 bonus
You promise an employee a $5,000 net bonus. At the federal supplemental rate of 22% plus 7.65% FICA (Social Security 6.2% + Medicare 1.45%), the combined rate is 29.65%. Here's how the iterative gross-up works:
- Quick estimate. Gross = Net / (1 - rate) = $5,000 / (1 - 0.2965) = $5,000 / 0.7035 = $7,107.32
- Compute taxes on that gross. Federal 22%: $7,107.32 × 0.22 = $1,563.61. FICA 7.65%: $7,107.32 × 0.0765 = $543.71. Total taxes: $2,107.32
- Check the net. $7,107.32 - $2,107.32 = $5,000.00 — that's our target. The formula converges in one step when the rate is flat.
- Result. To net $5,000, gross up to $7,107.32. The gross-up factor is 1.421×.
With progressive brackets or state taxes, the first estimate won't be exact. The calculator repeats steps 2–3, adjusting upward each pass until net matches the target within a cent. At higher combined rates (e.g., 37% federal + 13.3% California + 7.65% FICA), the factor climbs above 1.7×.
Gross-up reference table
Approximate gross pay needed for common net targets at three combined tax rates.
| Net target | 25% rate | 35% rate | 45% rate |
|---|---|---|---|
| $1,000 | $1,333 | $1,538 | $1,818 |
| $2,500 | $3,333 | $3,846 | $4,545 |
| $5,000 | $6,667 | $7,692 | $9,091 |
| $10,000 | $13,333 | $15,385 | $18,182 |
| $25,000 | $33,333 | $38,462 | $45,455 |
Formula: Gross = Net / (1 - combined rate). Actual amounts vary with progressive brackets.
When to use a gross-up
Relocation bonuses. Companies often promise to cover an employee's moving costs "tax-free." Since relocation reimbursements are taxable income, the employer grosses up the payment so the employee receives the full intended amount after withholding.
Signing bonuses. A $10,000 signing bonus without gross-up only delivers roughly $6,500–$7,000 after taxes. If the offer letter promises $10,000 net, HR needs to calculate the grossed-up amount.
Supplemental wages. The IRS taxes supplemental wages (bonuses, commissions, severance) at a flat 22% federal rate for amounts up to $1 million, plus FICA. Employers use gross-up to ensure the employee's check matches the promised figure.
Equity vesting gross-ups. When restricted stock units (RSUs) vest, the taxable income triggers withholding. Some companies gross up the tax impact so employees keep the full share value. This is common in executive compensation and retention packages.
FAQ
What is a gross-up?
Calculating the total gross needed so that after taxes, the recipient gets a specific net amount.
When is gross-up used?
Relocation expenses, sign-on bonuses, executive comp, and any situation where a specific net is promised.
What is a typical gross-up factor?
1.3× to 1.6× depending on bracket and state. Higher in states like California.
Why can't I just divide by (1 - tax rate)?
That's a rough estimate, but progressive brackets and multiple taxes (federal, state, FICA) make it inaccurate. The iterative method accounts for all of this.
Related tools
- Paycheck Estimator — calculate take-home pay from gross
- Tax Bracket Calculator — see your bracket breakdown
- Bonus Tax Calculator — how bonuses are taxed
- Take-Home Pay by State — compare all 50 states
Estimates based on 2026 rates. Does not account for local taxes, credits, or deductions. Consult a tax professional for advice.