RSU Tax Calculator
Estimate tax on RSU vesting: federal 22%, state, FICA. See sell-to-cover shares, net shares, and after-tax value. Instant results.
How to use
Enter RSUs vesting + FMV per share
Select filing status & state
Add other annual income (salary, bonus)
View net shares, tax withheld, after-tax value
RSU Tax Calculator 2026
Federal · State · FICA · Sell-to-cover
Salary, bonus, etc. — used for SS wage base, Medicare threshold, and bracket impact.
Net shares received after sell-to-cover
60.12
$9,018 after-tax value
Marginal bracket: 32%
Flat 22% supplemental wage withholding
6.2% on vest value
1.45% on all wages
CA supplemental withholding
AMT note: RSUs are taxed as ordinary income at vest and generally do not trigger Alternative Minimum Tax (AMT). AMT typically applies to incentive stock options (ISOs) when you exercise and hold. RSUs vest as compensation and are taxed like salary.
Employers typically withhold RSU vesting at 22% federal (37% on amounts over $1M) plus state supplemental rates and FICA. This calculator assumes the flat supplemental method. Actual withholding may vary if your employer uses the aggregate method.
Quick RSU Vest Take-Home Estimates
Federal + FICA only — before state tax
Use the calculator above for your exact numbers including state withholding and sell-to-cover.
How RSU Tax Works
RSU taxation at vest
RSUs (Restricted Stock Units) are taxed as ordinary income when they vest, not at grant. The fair market value (FMV) of shares on the vest date is added to your W-2 wages.
Employers withhold at the supplemental wage rate: 22% federal (37% on amounts over $1M), plus state supplemental rates and FICA (Social Security 6.2%, Medicare 1.45%).
With sell-to-cover, your employer sells some of the vesting shares to cover the tax. You receive the net shares. This calculator shows how many shares are sold and how many you keep.
Flat supplemental rate on amounts under $1M. 37% above $1M.
6.2% Social Security (up to wage base) + 1.45% Medicare.
NY 11.70%, NJ 10.75%, CA 10.23%. No-tax states: TX, FL, WA, NV.
RSUs vs Stock Options
RSUs grant actual shares at vest. You pay income tax on the FMV at vest. No exercise price, no strike price. Common at public tech companies (Google, Meta, Microsoft).
Stock options (ISO, NSO) give you the right to buy at a strike price. ISOs can trigger AMT on exercise; NSOs are taxed as income when exercised. RSUs do not trigger AMT.
Sell-to-Cover Explained
When RSUs vest, your employer must withhold taxes. Most use sell-to-cover: they sell a portion of your shares, send the proceeds to the IRS (and state), and deliver the remaining shares to your brokerage.
Formula
Shares sold = Tax withheld ÷ FMV per share
Example: 100 RSUs @ $150, $6,000 tax = 40 sold, 60 kept
RSU Supplemental Withholding by State
State supplemental rates on RSU vesting — no-tax states withhold 0%
| State | Supplemental rate | ~Tax on $15,000 vest |
|---|---|---|
| New Jersey | 10.75% | ~$1,613 |
| California | 10.23% | ~$1,535 |
| Connecticut | 6.99% | ~$1,049 |
| New York | 11.70% | ~$1,755 |
| Texas | 0% | $0 |
| Florida | 0% | $0 |
| Washington | 0% | $0 |
| Nevada | 0% | $0 |
No-tax states: AK, FL, NV, NH, SD, TN, TX, WA, WY. Federal 22% + FICA (~29%) apply to all states. Use the calculator for your exact numbers.
Sell-to-Cover: Shares Sold vs Net Shares Received
100 RSUs at different FMV — California, single, $150k other income, 2026 SS wage base $184,500
| RSUs | FMV/share | Gross value | ~Tax (CA) | ~Shares sold | ~Net shares |
|---|---|---|---|---|---|
| 100 | $100 | $10,000 | ~$3,988 | ~40 | ~60 |
| 100 | $150 | $15,000 | ~$5,983 | ~40 | ~60 |
| 100 | $200 | $20,000 | ~$7,976 | ~40 | ~60 |
| 100 | $300 | $30,000 | ~$11,964 | ~40 | ~60 |
~40% of shares are sold to cover tax in California (fed 22% + SS 6.2% + Medicare 1.45% + CA 10.23% ≈ 39.9%). In no-tax states like TX, ~30% sold. Tax calculations assume no additional Medicare (total income < $200K here).
RSU vs ISO vs NSO — Tax & Vesting Comparison
How equity types differ for tax timing, AMT, and withholding
| Factor | RSUs | ISOs | NSOs |
|---|---|---|---|
| Tax timing | At vest (ordinary income) | At sale (if held 1yr+) | At exercise (ordinary income) |
| AMT risk | No | Yes (exercise can trigger) | No |
| Strike price | N/A — grants shares | Yes (exercise to buy) | Yes (exercise to buy) |
| Withholding at vest | 22% fed + state + FICA | N/A | N/A (tax at exercise) |
| Sell-to-cover | Yes (common) | No | Possible at exercise |
Use the calculator above for RSU vest tax. For vesting schedules, see Equity Vesting Calculator.
Same RSU Vest: California vs Texas
100 RSUs @ $150 FMV · $150k other income · single filer · 2026 SS wage base $184,500
| Metric | California | Texas | Difference |
|---|---|---|---|
| Gross RSU value | $15,000 | $15,000 | $0 |
| ~Federal withholding | ~$3,300 | ~$3,300 | $0 |
| ~State withholding | ~$1,535 | $0 | ~$1,535 more (CA) |
| ~FICA (SS + Medicare) | ~$1,148 | ~$1,148 | $0 (same) |
| ~Total tax withheld | ~$5,983 | ~$4,448 | ~$1,535 more (CA) |
| ~Net shares received | ~60 | ~70 | ~10 more (TX) |
Same vest, same FMV — California state tax means ~10 fewer shares received. FICA is identical in both states. Enter your state above for exact numbers.
RSU Tax Calculator by State
State-specific RSU calculator pages with pre-filled state and local rates
Planning your full vesting schedule?
Use our Equity Vesting Calculator to model 4-year schedules, cliffs, and acceleration. Then use this RSU Tax Calculator to estimate the tax on each individual vest event.
The 22% withholding trap: why most RSU recipients owe more at filing
Source: IRS Publication 15, Section 7 (2026); IRC §3402(g); Rev. Proc. 2025-32
The 22% federal supplemental rate (per IRS Publication 15, Section 7) is an administrative withholding shortcut — it is not your actual marginal tax rate. For most RSU recipients at tech and finance companies, salary alone already fills the 24% or 32% bracket, meaning every dollar of RSU income lands in an even higher bracket.
| Total income (single, 2026) | Marginal bracket on RSU | Federal withheld on $100K vest | Approx. actual tax owed | Shortfall at filing |
|---|---|---|---|---|
| $150K salary + $100K vest = $250K | 32% | $22,000 | ~$32,000 | ~$10,000 |
| $200K salary + $100K vest = $300K | 35% | $22,000 | ~$35,000 | ~$13,000 |
| $500K salary + $100K vest = $600K | 37% | $22,000 | ~$37,000 | ~$15,000 |
California compounds the gap: the state withholds at 10.23% but the top CA marginal rate is 13.3%. On a $100K vest, that is an additional ~$3,070 of California tax owed beyond withholding.
How to cover the shortfall
- Quarterly estimated payments: use Form 1040-ES to pay the gap before each quarterly deadline (Q1: Apr 15, Q2: Jun 16, Q3: Sep 15, Q4: Jan 15, 2027).
- Increase W-4 withholding: add a flat dollar amount on Form W-4, Line 4(c) to withhold extra from each paycheck year-round.
- Safe harbor: pay at least 100% of prior year tax (110% if AGI >$150K) via withholding or estimates to avoid underpayment penalties (IRC §6654).
After vesting: cost basis, 2026 capital gains rates, and the 1099-B double-taxation trap
Source: IRC §83(a); IRS Publication 525; Rev. Proc. 2025-32; IRS Form 8949 instructions
Once your RSUs vest and you pay ordinary income tax on the FMV, those shares behave like any other stock you own. Your cost basis equals the FMV on the vest date — the same amount already reported in W-2 Box 1. When you later sell, only the difference between the sale price and that basis is a capital gain or loss.
2026 Long-Term Capital Gains Rates
Applies only if shares held >1 year from vest date (not from grant date)
| Rate | Single taxable income | MFJ taxable income |
|---|---|---|
| 0% | ≤ $49,450 | ≤ $98,900 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 |
| 20% | > $545,500 | > $613,700 |
+3.8% NIIT if MAGI > $200K (single) or > $250K (MFJ) — IRC §1411. Source: Rev. Proc. 2025-32.
The 1099-B double-taxation trap
Brokers often report a $0 or "unknown" cost basis on Form 1099-B because their records show only the share delivery — not the vest-date FMV already taxed as W-2 wages. If you file with the $0 basis, the IRS taxes you on the full sale price as a capital gain — paying twice on the same income.
Fix: adjust basis on Form 8949
- Enter the vest-date FMV per share in Column (e) "Cost or other basis."
- Enter the 1099-B reported basis in Column (d), then the adjustment in Column (g).
- Use Code "B" in Column (f) if box 5 is checked (basis not reported to IRS).
Short-term vs long-term strategy: Selling at vest means basis ≈ sale price, so capital gain is essentially $0. Holding for more than one year from the vest date converts future appreciation to long-term gains (0–20% + NIIT). However, holding a concentrated single-stock position to save taxes introduces significant company-specific risk.
Total RSU withholding by state: combined federal + FICA + state rates for 2026
Source: IRS Publication 15 (2026); NY DTF Publication NYS-50-T-NYS (1/26); CA EDD DE 44 (2026); IRS Topic 751
Most RSU recipients focus on the state rate, but the total withholding at vest is the combination of federal 22% + FICA 7.65% + state rate. With New York's 2026 supplemental rate raised to 11.70% (per NY DTF Pub. NYS-50-T-NYS, effective 1/1/2026), New York now carries a higher combined withholding rate than California. NYC residents add city income tax on top.
| State / City | Federal 22% | FICA 7.65% | State rate | Combined withholding | ~Tax on $100K vest |
|---|---|---|---|---|---|
| New York City (NYC) | 22% | 7.65% | 11.70% + ~4.25% city | ~45.60% | ~$45,600 |
| New York State (no NYC) | 22% | 7.65% | 11.70% | ~41.35% | ~$41,350 |
| New Jersey | 22% | 7.65% | 10.75% | ~40.40% | ~$40,400 |
| California | 22% | 7.65% | 10.23% | ~39.88% | ~$39,880 |
| Connecticut | 22% | 7.65% | 6.99% | ~36.64% | ~$36,640 |
| Texas / Florida / WA / NV | 22% | 7.65% | 0% | ~29.65% | ~$29,650 |
FICA phase-out at $184,500 SS wage base
The 6.2% Social Security portion of FICA applies only up to the 2026 wage base of $184,500 (per IRS Publication 15 / SSA). If your salary already exceeds $184,500 before the RSU vest, only Medicare 1.45% (and potentially 0.9% Additional Medicare Tax) applies to the vest — reducing your FICA burden from 7.65% to 1.45%. This effectively improves take-home on RSUs that vest later in the year.
The actual rate gap: withholding vs. reality
Withholding is a floor, not a ceiling. If your marginal rate is 35%, you'll owe more than the 22% withheld. CA's top rate is 13.3% vs. 10.23% withheld; NY's top rate is 10.9% — close to the 11.70% supplemental rate, meaning CA employees face a larger state underpayment gap than NY employees for the state portion alone.
The withholding, net shares, and after-tax value above come from the RSU count, share price, filing status, state, and other income you enter—not a third-party feed. At vest, RSUs are taxed as ordinary income at fair market value. We apply supplemental wage withholding (22% federal), FICA with the Social Security wage base, state supplemental rates, then estimate sell-to-cover shares. We also show marginal and effective tax rates based on your total income with and without the vest. Below are the formulas, the order we follow, and worked examples you can check by hand.
Formulas
| Line | Formula |
|---|---|
| Gross RSU income at vest | Number of RSUs × fair market value per share on vest date |
| Federal supplemental withholding | Gross RSU income × 22% (or split 22% / 37% above $1M) |
| Social Security | Lesser of (gross RSU income, remaining wage base) × 6.2% |
| Medicare | Gross RSU income × 1.45% |
| Additional Medicare | Portion of vest above $200,000 combined wages × 0.9% |
| State supplemental withholding | Gross RSU income × state supplemental rate |
| Total estimated withholding | Federal + Social Security + Medicare + Additional Medicare + state |
| Shares sold to cover taxes | Total estimated withholding ÷ fair market value per share |
| Net shares received | RSUs vesting − shares sold to cover |
| After-tax value | Net shares received × fair market value per share |
| Effective withholding rate | Total estimated withholding ÷ gross RSU income |
| Effective tax rate (annual estimate) | (Total tax with vest − total tax without vest) ÷ gross RSU income |
Order of operations
Calculate gross income at vest
Gross RSU income = RSUs × FMV per share
On the vest date, the full fair market value of vested shares is ordinary wage income—reported on your W-2, just like salary. This is separate from any capital gains when you later sell the shares.
Apply federal supplemental withholding
22% flat on gross RSU income (37% on amount over $1M)
Employers typically withhold RSU vesting using the same flat supplemental wage rate as bonuses. This is paycheck withholding, not your final tax bill.
Calculate FICA on the vest
6.2% Social Security (within wage base) + 1.45% Medicare + 0.9% Additional Medicare if over $200K
RSU vesting is subject to FICA like salary. If your other income already hit the Social Security wage base, no Social Security is withheld on the vest.
Apply state supplemental withholding
Gross RSU income × state supplemental rate
Each state sets its own supplemental withholding rate. High-tax states (CA, NY, NJ) withhold more, leaving fewer net shares after sell-to-cover.
Estimate sell-to-cover
Shares sold = total withholding ÷ FMV; net shares = RSUs − shares sold
Many employers automatically sell enough shares at vest to cover withholding and deposit the remainder in your brokerage. Fractional shares are common.
Compare withholding vs. estimated actual tax
Effective tax rate = incremental annual tax ÷ gross RSU income
We estimate your actual marginal and effective tax using federal and state brackets on total income with and without the vest. Withholding may be less than your true liability in high brackets—you may owe more at filing.
Worked example
100 RSUs × $150 FMV = $15,000 gross income, Single, $150,000 other annual income, California, 2026
100 × $150 = $15,000 ordinary income at vest
$3,300 federal (22%) + $930 Social Security + $217.50 Medicare + $1,534.50 California state = $5,982 total withholding (39.88%)
$5,982 ÷ $150 = 39.88 shares sold → 60.12 net shares worth $9,018
Estimated actual effective tax on the vest: 42.25% (Marginal bracket: 32%). Withholding (39.88%) may differ from what you owe when you file.
| Line item | Amount |
|---|---|
| RSUs vesting | 100 |
| Fair market value per share | $150 |
| Gross RSU income at vest | $15,000 |
| Federal supplemental withholding (22%) | $3,300 |
| Social Security (6.2%) | $930 |
| Medicare (1.45%) | $217.50 |
| Additional Medicare (0.9%) | $0 |
| State withholding | $1,534.50 |
| Total estimated withholding | $5,982 |
| Effective withholding rate | 39.88% |
| Shares sold to cover | 39.88 |
| Net shares received | 60.12 |
| After-tax value | $9,018 |
| Estimated effective tax rate | 42.25% |
| Marginal tax bracket | 32% |
California withholds 10.23% on supplemental wages. On a $15,000 vest, state withholding is $1,534.50.
With $200,000 in other income (above the $184,500 wage base), Social Security on a $15,000 vest is $0—only Medicare and federal withholding still apply.
A $1,500,000 vest ($1,500,000 gross): federal withholding is 22% on the first $1M ($220,000) + 37% on the excess ($185,000) = $405,000 before FICA.
2026 rates and limits we use
| Parameter | What we use |
|---|---|
| Federal supplemental rate (under $1M) | 22.0% |
| Federal supplemental rate (over $1M) | 37.0% |
| Social Security wage base (2026) | $184,500 |
| Social Security rate | 6.20% |
| Medicare rate | 1.45% |
| Additional Medicare rate | 0.90% |
| Additional Medicare withholding threshold | $200,000 |
| California supplemental rate (example) | 10.23% |
What we do not model on this page
We use flat-rate supplemental withholding only—not the aggregate method (combining vest with regular wages). We do not model local city taxes, capital gains on shares sold after vest, 83(b) elections, ISO/NSO/ESPP rules, broker 1099-B cost-basis adjustments, NIIT on future sales, or employer-specific withholding choices. Sell-to-cover assumes shares are sold at vest FMV with no trading costs. Your actual tax depends on total-year income, deductions, and credits when you file.
Frequently Asked Questions
References & Official Sources
RSU tax treatment and supplemental withholding rates based on IRS guidance
State income and RSU withholding: see your state department of revenue — for example California FTB or New York Tax.
Disclaimer: This calculator provides estimates for planning purposes only. It is not tax advice. Actual withholding and tax liability depend on your employer's payroll system, additional income, deductions, and filing. Consult a tax professional for guidance specific to your situation.