RSU tax calculator
Estimate the tax on a restricted stock unit vesting, and the gap between what your employer withholds and what you'll actually owe.
The full value of the vested shares is ordinary income, added to your W-2 that year.
42.4% of the vesting (federal, Medicare, and state)
What's left after estimated tax
Sold at the vesting price to pay the estimated bill
Mind the withholding gap. Employers withhold federal tax on RSUs at a flat 22%, but your 35% bracket owes more. That leaves an estimated $6,500 in federal tax you may still owe at filing, before state tax. Setting that aside now avoids an April surprise.
Estimates only, not tax advice. Assumes RSU income stacks on salary at your chosen marginal rate, that your salary already clears the Social Security wage base, and a flat state rate. Your actual tax depends on your full return.
Why RSU taxes surprise people
RSUs are taxed as ordinary income the moment they vest, on the full value of the shares, whether or not you sell. That part is simple. The surprise is the withholding: your employer withholds federal tax at a flat 22% (37% on supplemental wages above $1 million), and for a high earner whose real bracket is 32% to 37%, that isn't enough. The difference lands as a bill at filing.
The fix is to know the gap in advance and set the cash aside, or sell a few more shares when they vest. For the full picture of how RSUs compare to stock options, read RSUs vs stock options, and see how a flat-fee team handles equity on the pricing page.
Frequently asked questions
Get your equity and taxes in one plan
Book a free 25-minute consultation. A dedicated CPA and CFP plan your RSUs, options, and taxes together, for one flat fee. You'll leave with a clear read on where you stand.
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