Grossing up answers “how much do I need to pay (or charge) so that, after tax, exactly this much is left?”. Enter the amount and your tax rate — a single flat rate, or brackets that you fill in yourself, so the calculator works for any country and never goes out of date.
Enter each bracket’s starting income and the rate charged on the part of income above it. These are an example — replace them with your own.
For a bonus on top of a salary, enter the salary here so the bonus is taxed at your top rates.
With a single flat rate t, net = gross × (1 − t), so gross = net ÷ (1 − t). To end up with 1,000 after 33% tax you need 1,000 ÷ 0.67 = 1,492.54 — not 1,330, because the tax is charged on the grossed-up amount too.
If there are two separate percentage deductions on the same gross (say income tax plus a levy), they’re added together first: 33% + 1.6% = 34.6%, so gross = net ÷ 0.654.
With brackets, the calculator searches for the smallest gross whose after-tax amount reaches your target, taxing each slice at its own rate. If you’ve already earned some income this year, the extra amount is taxed on top of it — which is why a bonus is usually taxed at your highest rate.
Increasing a payment so that, after tax is taken off, the person receives a set amount. Employers gross up bonuses and relocation payments; freelancers gross up prices so they keep what they need after tax.
Divide the amount you want the person to receive by (1 − their marginal tax rate). For a 500 net bonus at a 30% marginal rate: 500 ÷ 0.70 = 714.29 gross.
Because the tax is charged on the gross amount, including the extra you add. 1,000 + 33% = 1,330, but 33% of 1,330 is 438.90, leaving only 891.10. The correct gross is 1,492.54.
Not quite. Sales taxes are added on top of a price (price × 1.15), while income tax comes out of the gross. Use the Sales Tax calculator for GST, VAT and sales tax.
On your tax authority’s website — IRD in New Zealand, the ATO in Australia, HMRC in the UK or the IRS in the US. Enter the thresholds and rates as they appear there.
