Gross-Up Calculator — Net to Gross Pay

Q: Can I gross up for state taxes too?

Yes. State income tax and, in some states, disability insurance change the gross needed by hundreds or thousands of dollars. This calculator includes state income tax and SDI for all 50 states and DC.

Need a specific net paycheck? This free gross-up calculator finds the gross amount required to land at your target net after federal, state, and FICA taxes.

Desired net amount per period

Pay frequency

Filing status

State

Required gross pay (annual)

$79,468.13

≈ $6,622.34 per monthly period

Gross / period$6,622.34

Federal tax− $758.08

State tax− $284.81

Social Security + Medicare− $506.61

SDI− $72.85

Net / period$5,000.00

Estimates only. Used by employers for relocation reimbursements, signing bonuses, and severance.

What Is a Gross-Up Calculator?

A gross-up calculator works backward from the paycheck. Normally you start with gross pay and subtract taxes to find net. A gross-up starts with the net amount you want the employee to actually receive and solves for the gross wage that produces it after federal income tax, state income tax, Social Security, and Medicare.

Employers use gross-ups whenever a payment was promised as a clean net number. Relocation reimbursements, signing bonuses, severance, and taxable fringe benefits are the most common cases. If you tell a new hire their $10,000 relocation package is tax-free, you have to pay more than $10,000 for that to be true.

How to Calculate a Gross-Up (Formula)

The simple version of the formula is:

Gross pay = Net amount ÷ (1 − total tax rate)

Working through it step by step:

Add up the tax rates. Federal supplemental rate (22% on payments under $1 million), Social Security 6.2%, Medicare 1.45%, plus your state rate.
Convert to a decimal and subtract from 1. A 34.65% combined rate becomes 0.6535.
Divide the target net by that figure. $5,000 ÷ 0.6535 = $7,651.
Check the result. Run the gross through a paycheck calculation and confirm the net lands where you wanted.

That flat-rate method is close enough for a one-off bonus. It breaks down for regular wages, because federal brackets are progressive and Social Security stops at the $176,100 wage base in 2026. The calculator above solves the equation numerically against real 2026 brackets, so the answer holds at any income level.

Gross-Up Examples (2026)

Single filer, no pre-tax deductions, using the 22% federal supplemental rate plus 7.65% FICA. State rate varies by row.

Target net	State rate	Combined rate	Gross needed
$1,000	0% (TX, FL)	29.65%	$1,421
$2,500	5%	34.65%	$3,826
$5,000	5%	34.65%	$7,651
$10,000	0% (TX, FL)	29.65%	$14,214
$10,000	9.3% (CA)	38.95%	$16,381

Estimates for planning. Your exact figure depends on filing status, year-to-date wages, and state rules.

Why State Choice Changes the Gross-Up So Much

The same promised net costs an employer very different amounts depending on where the employee works. A $10,000 net payment costs about $14,214 in Texas or Florida, where there is no state income tax. The same promise in California costs roughly $16,381 once the state rate and SDI are included — more than $2,000 of additional employer cost for an identical employee experience.

If you are budgeting relocation packages across multiple states, run each state separately in the calculator rather than applying one blended rate. You can also open the state paycheck calculator to see the full withholding breakdown for that employee's regular pay.

Gross-Up vs. Bonus Withholding

These solve opposite problems. A bonus tax calculator starts with the bonus amount and tells the employee what lands in their account. A gross-up starts with what should land in the account and tells the employer what to pay.

One caution for employees: a grossed-up payment is fully taxable wages on your W-2. If the employer used the flat 22% supplemental rate but your marginal bracket is 24% or 32%, the withholding may fall short and you could owe a little at filing. Check your annual picture with the W-4 withholding calculator.

Frequently Asked Questions — Gross-Up Calculator

What is a gross-up in payroll?+

A gross-up is when an employer increases a payment so the employee receives a specific net amount after taxes. Instead of paying $5,000 and letting taxes reduce it, the employer calculates the larger gross figure that leaves exactly $5,000 in the employee's pocket and absorbs the tax cost.

What is the formula for grossing up a paycheck?+

The basic formula is Gross = Net ÷ (1 − total tax rate). If the combined federal, state, Social Security, and Medicare rate is 30% and the target net is $5,000, the gross is $5,000 ÷ 0.70 = $7,142.86. Because federal brackets are progressive and Social Security stops at the wage base, an exact answer requires solving iteratively — which is what the calculator above does.

How do you gross up a $5,000 bonus?+

Using the IRS 22% supplemental federal rate plus 7.65% FICA and a 5% state rate (34.65% total), a $5,000 net bonus requires a gross of about $7,651. Change the state or the employee's income and the number moves, so run your own figures in the calculator.

Are gross-up payments taxable to the employee?+

Yes. The full grossed-up amount is taxable wages reported on the employee's W-2. The point of the gross-up is that the extra dollars cover the tax bill, so the employee's net matches the promised amount.

When do employers use a gross-up?+

Most often for relocation reimbursements, signing bonuses, severance packages, taxable fringe benefits like company cars or gift cards, and executive perks — any situation where the employer promised a clean, round net number.

Can I gross up for state taxes too?+

Yes, and you should. State income tax and, in some states, disability insurance change the gross needed by hundreds or thousands of dollars. This calculator includes state income tax and SDI for all 50 states and DC.

This gross-up calculator provides estimates for planning purposes only. It is not tax advice. Confirm final payroll figures with your payroll provider or a licensed tax professional.