RSU & Stock Option Tax Calculator: Equity Compensation (2026)
Equity compensation can be valuable — but taxes often determine how much you actually keep. RSUs are taxed as ordinary income at vesting. Stock options are taxed at exercise (NSOs) or at sale (ISOs). These free calculators estimate the real after-tax value of your equity before vesting events and exercise decisions.
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Equity compensation tax calculators (2026)
- RSU tax calculator Estimate federal and state taxes owed when RSUs vest — shares × vest price → gross value → net after withholding. Includes FICA and state tax.
- Stock option tax calculator Estimate tax on exercised stock options — NSO ordinary income tax on the spread, or ISO capital gains analysis including AMT considerations.
RSU and stock option tax reference (2026)
RSU vesting: estimated after-tax proceeds by vest value
Federal withholding on RSUs is typically at the 22% supplemental rate (37% above $1 million). Your actual year-end tax may differ if your marginal rate is higher. State tax is additional.
| RSU Vest Value | Federal Withholding (22%) | FICA (~7.65%) | Total Fed + FICA | Net After Fed + FICA | Net After CA State Tax (~9%) |
|---|---|---|---|---|---|
| $10,000 | $2,200 | $765 | $2,965 | ~$7,035 | ~$6,135 |
| $25,000 | $5,500 | $1,913 | $7,413 | ~$17,587 | ~$15,337 |
| $50,000 | $11,000 | $3,825 | $14,825 | ~$35,175 | ~$30,675 |
| $75,000 | $16,500 | $5,738 | $22,238 | ~$52,762 | ~$46,012 |
| $100,000 | $22,000 | $7,650 | $29,650 | ~$70,350 | ~$61,350 |
| $150,000 | $33,000 | $9,932* | $42,932 | ~$107,068 | ~$93,568 |
*FICA Social Security capped at $176,100 wage base in 2026; Medicare (1.45%) continues above that. Federal withholding at 22% supplemental rate may underpay if your marginal rate is 32%, 35%, or 37%. You may owe additional tax at filing. Use the RSU tax calculator for a personalized estimate including your marginal rate and state.
Stock option types: tax treatment comparison
| Option Type | Tax at Grant | Tax at Exercise | Tax at Sale | AMT Risk |
|---|---|---|---|---|
| NSO / NQSO | None | Ordinary income on spread (W-2) | Capital gains on appreciation above FMV at exercise | No |
| ISO (qualifying disposition) | None | None (regular tax) | Long-term capital gains on full gain | Yes — spread is AMT preference item |
| ISO (disqualifying disposition) | None | None at exercise | Ordinary income on spread; capital gains on remaining | Reduced |
| ESPP (qualifying) | None | None | Ordinary income on discount; capital gains on rest | No |
ISO qualifying disposition requires holding shares at least 2 years from grant date and 1 year from exercise date. Use the stock option tax calculator to model NSO vs ISO outcomes at your specific strike price and FMV.
Related calculators
- Capital gains tax calculator Estimate tax on selling RSU or option shares after holding — short and long-term rates
- Bonus & severance tax calculator Estimate net payout from supplemental income — same withholding rules as RSUs
- Take-home pay calculator See how RSU vest income stacks on top of your salary for total W-2 tax planning
- Marginal vs effective tax rate Why RSU withholding at 22% may underpay your actual tax obligation
Filing taxes with RSUs or stock options?
Equity compensation events — vesting, exercising, and selling — all require accurate reporting. These tools handle equity-specific tax situations:
- TurboTax — handles RSU vesting, stock option exercises, and capital gains reporting
- H&R Block — file with a tax professional for complex equity and AMT situations
- FreeTaxUSA — handles W-2 RSU income and basic capital gains at low cost
Affiliate links — we may earn a commission at no cost to you.
RSU and stock option tax: FAQs
How are RSUs taxed?
RSUs (Restricted Stock Units) are taxed as ordinary income at vesting — the fair market value of the shares on the vest date is added to your W-2 income and taxed at your marginal federal and state rate. Federal withholding is typically at the 22% supplemental rate (or 37% above $1 million). FICA also applies. If you hold the shares after vesting and they appreciate, subsequent gains are taxed as capital gains — long-term rate if held over 12 months. Use the RSU tax calculator to estimate your net proceeds.
How much tax do I pay on RSU vesting?
At RSU vesting, federal withholding is typically 22% (supplemental rate) for most employees. On a $50,000 vest: federal withholding of ~$11,000 + FICA ~$3,825 + state tax (0–13.3%). Total tax at vesting: approximately $15,000–$22,000 depending on state. Net after-tax proceeds: approximately $28,000–$35,000. Your actual year-end tax may differ if your marginal rate is higher than 22% — a common situation for high-income earners with large vests.
When do I pay tax on stock options?
Tax timing depends on option type. Non-qualified stock options (NSOs) are taxed as ordinary income at exercise — the spread between exercise price and fair market value is W-2 income subject to federal, state, and FICA taxes. Incentive stock options (ISOs) are not taxed at exercise for regular income tax, but the spread may trigger Alternative Minimum Tax (AMT). ISOs are taxed as capital gains at sale if holding requirements are met.
What is the difference between NSO and ISO stock option taxes?
NSOs (Non-Qualified Stock Options) are taxed as ordinary income at exercise on the spread (FMV minus strike price) — subject to federal, state, and FICA taxes immediately. ISOs (Incentive Stock Options) have no regular income tax at exercise, but the spread counts as an AMT preference item. If you hold ISO shares for 2 years from grant and 1 year from exercise (qualifying disposition), gains are taxed at long-term capital gains rates. Early sales (disqualifying dispositions) are taxed as ordinary income on the spread. Use the stock option tax calculator to model both scenarios.
Are capital gains from selling vested RSU shares taxed differently?
Yes. If you hold RSU shares after vesting and they appreciate, the gain above the vest-date price is taxed as capital gains — 0%, 15%, or 20% long-term rate if held more than 12 months (plus 3.8% Net Investment Income Tax for earners above $200k single / $250k married). The vest-date value is already taxed as ordinary income; only appreciation above that is a capital gain. See the capital gains tax calculator for the full breakdown.
Can equity compensation push me into a higher tax bracket?
Yes. Large RSU vests or NSO exercises add to your W-2 income in the year they occur, which can push earnings into higher marginal brackets (24%, 32%, 35%, or 37%). Employers typically withhold at the flat 22% supplemental rate, which may underpay your actual tax if your marginal rate is higher. This creates a shortfall due at filing — planning ahead with estimated payments or additional withholding helps avoid penalties. See the marginal vs effective tax rate guide for how bracket stacking works.
Do I owe tax if I don't sell my RSU shares?
Yes. RSUs are taxed at vesting regardless of whether you sell the shares. The tax is based on the fair market value on the vest date — you owe ordinary income tax on that amount even if you hold the shares and they subsequently decline in value. This is why many employees sell shares immediately at vesting to cover the tax bill rather than risk holding a tax liability on shares that may drop in price.