Gross-Up Calculator
Turn the net pay you quote into the gross budget an employer must set aside, after federal, FICA, and state taxes.
Gross-up result
To pay 50,000 USD net, the employer budgets roughly $69,996.91 gross. That's about 28.6% taken in taxes (federal + FICA + California state).
Where the money goes
How gross-up works
A gross-up means the employer pays the employee's income taxes so the employee keeps exactly the amount quoted. Formula: gross = net ÷ (1 − combined_tax_rate). This calculator solves that iteratively because your tax rate changes with the trial gross (progressive brackets), then returns the number you can drop into an offer or invoice.
Tips for using this with clients
- Quote a net figure, then divide by (1 − rate) to arrive at the client-facing gross
- Combine with an hourly or project rate using the Hourly Rate Calculator
- Add your platform fees on top — see the Markup & Margin Calculator
- Confirm whether the payer must also gross up employer-side payroll taxes
Frequently asked questions
What does "gross up" mean?
It means the payer adds money to cover the recipient's taxes so the recipient keeps the stated net amount. The recipient's paycheck shows a larger gross with taxes deducted back down to the agreed net.
Why iterate instead of a one-line formula?
Federal brackets are progressive, so the effective rate depends on the final gross. Iteration converges to the correct gross rather than overshooting with a fixed high rate or undershooting with a fixed low rate.
Does this include employer payroll taxes?
No — it covers the employee's income tax, FICA, and state income tax only. Employer-side Social Security/Medicare match is separate and depends on employment type (W-2 vs 1099). Compare with the 1099 vs W-2 Comparator.
Is a gross-up taxable income?
Yes. Any employer-paid tax is itself taxable compensation in most cases, which is exactly why the gross must be higher than net / (1 − rate) would suggest at a flat approximation — the iterative solver accounts for the compounding.