Gross-Up Calculator 2026
Figure out the gross bonus, severance, or relocation payment needed to land on an exact take-home amount after federal, state, and FICA withholding.
Desired Net (Take-Home)
Filing Status
State
Pay Type
Include FICA (SS + Medicare)
YTD Wages (optional)
Other Pre-Tax Deductions
Estimates only. Not tax or legal advice. Consult a tax professional for accuracy.
Employer's Total Cost
Notes
- Withholding is not the same as final tax. Any over- or under-withholding gets reconciled when the employee files their tax return.
See the Full Paycheck Picture
Pay44 handles bonuses, overtime, deductions, and 50-state taxes.
How a Gross-Up Works
A gross-up is a reverse paycheck calculation. Start from the net amount you want the employee to keep and work backward to find the gross pay that, after all withholding, lands on that exact number. The puzzle is that adding more gross also adds more tax, which in turn needs more gross. When the withholding rates are flat, the math collapses to a single formula:
Gross Pay = Desired Net ÷ (1 − Combined Tax Rate)
For a $1,000 net in Texas using the supplemental method with FICA on, the combined withholding rate is 22% federal + 0% state + 6.2% Social Security + 1.45% Medicare = 29.65%. The formula gives $1,000 / (1 − 0.2965) = $1,421.47. Federal withholding takes $312.72, SS takes $88.13, Medicare takes $20.61, and the employee ends up with exactly $1,000 in the bank. The gross-up factor is 1.42×.
Common Use Cases
- Signing and referral bonuses. A gross-up makes the headline number the actual take-home.
- Relocation reimbursements. Since the 2017 TCJA, most employer-paid moving expenses are fully taxable.
- Severance payments. When severance is specified as net, the employer grosses up so the agreed amount lands after withholding.
- Non-cash awards. Prizes, gift cards, and similar fringe benefits are taxable at fair market value.
- Class-action or settlement payments that specify a net figure.
- Foreign-assignment tax equalization programs.
Percentage Method vs Aggregate Method
- Percentage (flat) method. The payment is issued on its own check and withheld at a flat 22% federal, plus any published state supplemental rate, plus FICA. For supplemental wages above $1,000,000 in a calendar year, the excess is withheld at a mandatory 37%.
- Aggregate method. The payment is combined with regular wages on a single check. The employer annualizes the combined total, runs it through the standard federal brackets, subtracts the tax already withheld on the salary, and withholds the difference from the bonus.
Tax Implications at Year-End
Withholding is not your final tax bill. A $1,421.47 gross-up adds $1,421.47 to your W-2 Box 1 wages and Box 3/Box 5 for FICA. At year-end, all of it rolls into your total taxable income and gets taxed at your actual marginal rate on Form 1040.
Gross-Up Reference Table (TX / No State Tax)
Gross pay required to deliver each net amount, assuming the 22% federal supplemental rate, 7.65% FICA, and no state income tax. Combined withholding: 29.65%. Gross-up factor: 1.42×.
| Desired Net | Required Gross | Federal (22%) | SS (6.2%) | Medicare (1.45%) | Factor |
|---|---|---|---|---|---|
| $500 | $710.73 | $156.36 | $44.07 | $10.31 | 1.42× |
| $1,000 | $1,421.47 | $312.72 | $88.13 | $20.61 | 1.42× |
| $2,500 | $3,553.66 | $781.81 | $220.33 | $51.53 | 1.42× |
| $5,000 | $7,107.32 | $1,563.61 | $440.65 | $103.06 | 1.42× |
| $10,000 | $14,214.64 | $3,127.22 | $881.31 | $206.11 | 1.42× |
| $25,000 | $35,536.60 | $7,818.05 | $2,203.27 | $515.28 | 1.42× |
Higher-tax states push the factor up. The same $1,000 net in California (10.23% supplemental rate) requires a $1,663.34 gross (1.66×); in New York (11.70%), $1,705.03 (1.71×).
Frequently Asked Questions
Common questions about gross-up calculator 2026
What is a gross-up calculation?
A gross-up reverse-engineers a paycheck. You start from the net amount you want the employee to take home and work backward to the gross pay needed so that, after federal, state, and FICA withholding, the net comes out exact.
When do employers use gross-up?
Most commonly for one-off payments: signing bonuses, relocation reimbursements, severance, referral bonuses, non-cash awards (gift cards, prizes), and to cover the tax hit on taxable fringe benefits so the employee isn't surprised at year-end.
Is the 22% supplemental rate always correct?
No. The 22% flat rate is an IRS withholding shortcut for supplemental wages under $1,000,000 in a calendar year (the excess above $1M is withheld at a mandatory 37%). Your actual year-end tax bill depends on total income and filing status, so 22% withheld now does not mean the bonus is taxed at 22% on your 1040.
How does state tax affect a gross-up?
States fall into three buckets. Nine have no income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY) and add 0% to the combined rate. Others publish a flat supplemental rate (California 10.23%, New York 11.70%, Oregon 8.00%) that is applied the same way as the federal 22%. States without a published supplemental rate fall back to their regular wage-bracket tables.
Does a gross-up include FICA?
Yes, by default. Social Security (6.2% up to the $184,500 wage base in 2026) and Medicare (1.45%, plus a 0.9% surtax on wages above $200,000) are owed on supplemental wages, so any realistic gross-up factors them in. Toggle FICA off only for genuinely FICA-exempt payments, which are rare.
Can I gross up a relocation bonus?
Yes. Since the 2017 TCJA, most employer-paid moving expenses are fully taxable, and relocation gross-ups are near-universal. Many companies use a flat 30–35% blended rate for internal simplicity, but the 22% supplemental method is the IRS-sanctioned path when the payment is on its own check.
How is a gross-up taxed at year-end?
The gross-up gets added to your W-2 Box 1 wages and Box 3 / Box 5 for FICA. Your final tax bill is computed on total taxable income on Form 1040. If 22% withheld is less than your marginal bracket, you'll owe more; if it's more, you'll get a refund. Withholding is not the same as the final tax.
What's the difference between the percentage and aggregate methods?
The percentage (flat) method pays the bonus on a separate check and withholds a flat 22% federal (plus any published state supplemental rate) plus FICA. The aggregate method combines the bonus with regular wages on one check, annualizes the total, applies the regular brackets, and subtracts the tax already withheld on the salary. Aggregate usually withholds more because it uses your marginal bracket instead of a flat 22%.