Online Tool Store
Withholding Tax Calculator
Calculate withholding from a gross payment, the net amount paid, or the gross amount needed to deliver a target net at a chosen rate.
🔒 This tool runs entirely in your browser. Your files are never uploaded to a server.
Finance
Withholding Tax Calculator
Frontend preview — no upload or external service.
Result
250,000 gross at 10%: 25,000 withheld, 225,000 net. To deliver 250,000 net at the same rate the gross must be 277,778 — not 275,000.
How the Withholding Tax Calculator works
- Enter the gross payment and the applicable withholding rate.
- Choose the direction: net from gross, or the gross needed to deliver a target net.
- Check the rate against the actual treaty or domestic rule that applies, since rates vary by payment type and recipient residence.
The method
Gross-up is not the same as adding the rate back, because the withholding applies to the larger gross figure as well.
gross = net / (1 − rate), not net × (1 + rate)
At 10%, delivering 250,000 net needs 250,000 / 0.9 = 277,778 gross. Adding 10% gives 275,000 and leaves the recipient 2,500 short.
FAQ
Why is gross-up not just adding the percentage?
Because the withholding is charged on the grossed-up amount, not the original. Dividing by one minus the rate is correct; multiplying by one plus the rate always falls short.
Which rate applies to my payment?
It depends on the payment type, the recipient's residence, and any tax treaty between the countries. Rates for services, royalties and dividends often differ, and treaty rates usually require documentation to claim.
Is this tax advice?
No. It is the arithmetic. Which rate applies, whether a treaty reduces it, and what documentation is needed are questions for a tax professional in the relevant jurisdiction.
How we compare
| Feature | Online Tool Store | A spreadsheet | An advisor consultation |
|---|---|---|---|
| Correct gross-up formula | ✓ | Often wrong | Yes |
| Both directions | ✓ | Manual | ✓ |
| Nothing stored | ✓ | ✓ | ✗ |
| Tax advice | ✗ | ✗ | ✓ |
Withholding Tax Calculator uses the correct gross-up formula, which is the one people get wrong by adding the percentage back instead of dividing.