Massachusetts2026State 5%

Massachusetts RSU Tax Calculator

Estimate tax on RSU vesting in Massachusetts. Federal 22% + Massachusetts 5% + FICA. See sell-to-cover shares, net shares, and after-tax value.

By Sammy S. · Founder · AuthorUpdated for 2026

22%

Federal supplemental

Massachusetts state

7.65%

FICA max

flat

Tax structure

RSU vesting details

Federal · State · FICA · Sell-to-cover

2026

Number of RSUs vesting

Fair market value per share

Filing status

State

Other annual income

Salary, bonus, etc. — used for SS wage base, Medicare threshold, and bracket impact.

Gross vest value$15,000

Net shares after sell-to-cover

65.35

$9,803 after-tax value

Net shares 65%Sold to cover 35%

Gross RSU income

$15,000

100.00 × $150

Tax withheld

$5,198

Eff. 34.6%

Shares sold to cover

34.65

@ $150/share

Marginal bracket

29%

Effective 37.5%

Total withholding rate34.6%

Marginal bracket: 24%

Federal Income Tax (supplemental 22%)

Flat 22% supplemental wage withholding

$3,300(22.0%)

Social Security (6.2%)

6.2% on vest value

$930(6.2%)

Medicare (1.45%)

1.45% on all wages

$218(1.4%)

State Tax (MA)

MA flat PIT ≈ 5.00% (no separate supplemental table)

$750(5.0%)

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 at 22% federal (37% over $1M) plus state supplemental rates and FICA. This calculator assumes the flat supplemental method.

Massachusetts RSU tax rates at a glance

Supplemental withholding rates used at vest in 2026

State supplemental withholding5%

Federal supplemental22% (37% over $1M)

Social Security (2026)6.2% up to $184,500

Medicare1.45% (+ 0.9% Additional Medicare over $200K single / $250K MFJ)

Tax structureFlat

How RSU vesting is taxed in Massachusetts

Ordinary income at vest, sell-to-cover, and net shares

Federal + FICA at vest

Restricted stock units are taxed as ordinary income when they vest. The fair market value (FMV) on the vest date is added to your W-2 wages. Employers typically withhold at the supplemental rate: 22% federal (37% above $1M), 5% Massachusetts state, and FICA — Social Security at 6.2% up to the 2026 wage base of $184,500, and Medicare at 1.45% (plus 0.9% Additional Medicare Tax above the applicable threshold).

With sell-to-cover, your employer sells enough vesting shares to fund that withholding and delivers the remaining net shares to your brokerage. Roughly: shares sold ≈ tax withheld ÷ FMV per share.

Massachusetts state tax on RSUs

Massachusetts has state income tax. RSU vesting is subject to 5% supplemental withholding on top of federal and FICA. That increases sell-to-cover vs. no-tax states (TX, FL, WA, NV, and similar), so you keep fewer net shares for the same vest.

Example: $15,000 vest

Massachusetts state withholding alone ≈ $750 — compared with $0 in Texas, Florida, or Washington.

Sell-to-cover, net shares, and after-tax value in Massachusetts

What happens on vest day and how to read the numbers

Most public-company RSU plans default to sell-to-cover (sometimes called “sell to cover taxes”). On the vest date, payroll calculates federal supplemental withholding, Massachusetts state withholding at 5%, and FICA, then the broker sells the fewest whole shares needed to raise that cash. You receive the leftover shares; cash from fractional rounding (if any) may appear in your brokerage account.

Gross vest value = RSUs vesting × FMV. Net shares = RSUs vesting − shares sold to cover. After-tax value ≈ net shares × FMV (before later capital gains when you sell). Use the Massachusetts calculator above to model your grant size, FMV, and other wages so Social Security wage-base limits are applied correctly.

$15,000 vest — state piece

Massachusetts supplemental tax ≈ $750 (5%). Federal 22% ≈ $3,300 plus FICA on the vest (subject to wage base).

$50,000 vest — state piece

Massachusetts supplemental tax ≈ $2,500. Federal 22% ≈ $11,000 plus FICA — sell-to-cover scales with vest size.

When Massachusetts RSU withholding is not enough

22% federal is an estimate — plan for the gap

Supplemental withholding is not your final tax bill. If your marginal federal bracket is above 22%, a large vest can leave a shortfall at filing. If your bracket is below 22%, you may over-withhold and get a refund. Massachusetts state withholding at 5% is also an estimate against your full-year state liability.

Common fixes: increase W-4 Line 4(c) extra withholding, or make Form 1040-ES quarterly estimated payments (typically Apr 15, Jun 16, Sep 15, and Jan 15 of the following year). Paying at least 100% of prior-year tax (110% if AGI > $150,000) generally satisfies the federal safe harbor and helps avoid underpayment penalties under IRC §6654.

Cost basis, Form 1099-B, and selling RSU shares in Massachusetts

Avoid double-taxing income already on your W-2

Vest-date FMV is included in W-2 Box 1 and becomes your cost basis in the shares. Brokers often report $0 basis on Form 1099-B for RSU sales — adjust basis on Form 8949 so you are not taxed twice on the same income (IRS Publication 525; Form 8949 instructions).

When you sell later, capital gain or loss = sale proceeds − vest-date FMV. Holding more than one year from the vest date (not grant date) qualifies for long-term capital gains rates (0% / 15% / 20% federally in 2026, plus 3.8% NIIT above MAGI thresholds). Massachusetts generally taxes capital gains as ordinary state income. Selling immediately after vest usually produces near-zero gain.

Compare RSU tax by state

How Massachusetts compares to high-tax and no-tax states

California

10.23%

New York

11.7%

New Jersey

10.75%

Texas

Florida

Washington

All states use federal 22% + FICA — only the state supplemental rate differs.

Browse every state calculator

National RSU tax calculator →

Withholding at vest is not your final tax. RSUs are ordinary income when they vest; capital gains apply only when you sell shares later. See our bonus tax calculator for bonus withholding rules and our after-tax stock calculator for after-tax value when you sell vested shares.

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, Massachusetts, 2026

100 × $150 = $15,000 ordinary income at vest

$3,300 federal (22%) + $930 Social Security + $217.50 Medicare + $750 Massachusetts state = $5,197.50 total withholding (34.65%)

$5,197.50 ÷ $150 = 34.65 shares sold → 65.35 net shares worth $9,802.50

Estimated actual effective tax on the vest: 37.53% (Marginal bracket: 24%). Withholding (34.65%) 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	$750
Total estimated withholding	$5,197.50
Effective withholding rate	34.65%
Shares sold to cover	34.65
Net shares received	65.35
After-tax value	$9,802.50
Estimated effective tax rate	37.53%
Marginal tax bracket	24%

Massachusetts withholds 5.0% on supplemental wages. On a $15,000 vest, state withholding is $750.

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	Source
Federal supplemental rate (under $1M)	22.0%	IRS Publication 15, Section 7
Federal supplemental rate (over $1M)	37.0%	IRS Publication 15, Section 7
Social Security wage base (2026)	$184,500	SSA announcement Oct 2025
Social Security rate	6.20%	IRS Topic 751
Medicare rate	1.45%	IRS Topic 751
Additional Medicare rate	0.90%	IRC §3101(b)(2)
Additional Medicare withholding threshold	$200,000	IRS Publication 15
California supplemental rate (example)	10.23%	CA EDD Publication DE 44

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.

Official references

FAQ

RSU tax FAQ — Massachusetts

Vesting, sell-to-cover, withholding shortfalls, cost basis, and state supplemental withholding in Massachusetts.

RSUs are taxed as ordinary income at vest. The FMV on vest date is added to W-2 wages. Employers withhold at 22% federal (37% above $1M), 5% Massachusetts state supplemental rate, and FICA (6.2% SS up to the 2026 wage base, 1.45% Medicare). Use the calculator above for a Massachusetts-specific estimate.

Yes. Massachusetts withholds 5% (supplemental rate) on RSU vesting. This is in addition to federal 22% and FICA. Your net shares are lower than in no-tax states (TX, FL, WA, NV, etc.). On a $15,000 vest, Massachusetts state withholding alone is about $750.

Sell-to-cover is when your employer sells a portion of your vesting RSUs to cover tax withholding (federal + Massachusetts state + FICA). You receive the remaining net shares. Shares sold ≈ Tax withheld ÷ FMV per share.

Not always. Supplemental withholding (22% federal + 5% Massachusetts + FICA) is an employer estimate. If your marginal federal bracket is higher than 22%, you may owe more when you file. If lower, you may get a refund. Track the gap with quarterly estimates or W-4 extra withholding.

If 22% federal under-withholds relative to your bracket, use Form 1040-ES quarterly payments (Apr 15, Jun 16, Sep 15, Jan 15 of the following year) or increase W-4 Line 4(c) extra withholding. Paying at least 100% of prior-year tax (110% if AGI > $150K) generally avoids underpayment penalties under IRC §6654.

No. RSUs are taxed as ordinary income at vest at both the federal and state level, and generally do not trigger Alternative Minimum Tax. AMT typically applies to incentive stock options (ISOs) when you exercise and hold, not to RSUs.

You pay ordinary income tax at vest. When you later sell the shares, you pay capital gains tax on the gain (sale price minus FMV at vest). Massachusetts also taxes capital gains as income in most cases. Selling immediately after vest usually means near-zero gain.

Hold more than one year from the vest date (not grant date) for long-term rates. For 2026: 0% / 15% / 20% federal brackets apply based on taxable income, plus 3.8% NIIT if MAGI exceeds $200K (single) or $250K (MFJ). Massachusetts may also tax the gain.

Brokers often lack vest-date FMV. Your cost basis is the FMV on the vest date — the same amount already included in W-2 Box 1. Adjust basis on Form 8949 so you do not pay tax twice on the same income. Source: IRS Publication 525 and Form 8949 instructions.

RSU vesting income is included in Box 1 wages (and usually Boxes 3 and 5 for Social Security and Medicare wages, subject to wage-base limits). Federal income tax withheld appears in Box 2; Massachusetts withholding appears in the state boxes.

Net shares = RSUs vesting − (total tax withheld ÷ FMV). Total tax typically includes 22% federal, 5% Massachusetts, Social Security (if under the wage base), and Medicare. Enter your numbers in the Massachusetts calculator above for an instant estimate.

Massachusetts's 5% supplemental rate increases sell-to-cover vs. no-tax states (TX, FL, WA, NV, etc.). On a $15,000 vest, state tax alone is about $750 in Massachusetts vs $0 in Texas. Federal 22% and FICA apply in every state.

Official references

Primary sources for RSU vesting tax rules

Disclaimer: Estimates for planning purposes only. Not tax, legal, or investment advice. Actual withholding and tax liability depend on your employer's payroll system, additional income, deductions, filing status, and plan elections. Consult a qualified tax professional for guidance specific to your Massachusetts situation.