RSU & Stock Option Tax Calculators: Equity Compensation (2026)
Equity compensation can be valuable — but the tax event depends on what you receive. RSUs generally create wage income when shares are delivered at vesting. Nonqualified stock options (NSOs) generally create compensation income at exercise, while incentive stock options (ISOs) can create an Alternative Minimum Tax adjustment even when no regular federal income tax is due at exercise. Use these tools for planning, then reconcile the result with your W-2, brokerage records, and filing situation.
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Equity compensation tax calculators (2026)
- RSU tax calculator Estimate gross vest value and a net amount using your own planning tax rate, with 2026 withholding, FICA, sell-to-cover, and basis guidance.
- Stock option tax calculator Calculate exercise cost and spread, apply a planning rate for NSOs, and compare ISO rules including current 2026 AMT reference amounts.
RSU and stock option tax reference (2026)
RSU vesting: illustrative withholding by vest value
If an employer uses the optional flat federal method for separately identified supplemental wages, withholding is 22% up to $1 million of supplemental wages; the mandatory rate on the excess above $1 million is 37%. Employers may use an aggregate method in applicable cases, so payroll withholding is not the same thing as your final tax liability.
| RSU Vest Value | Illustrative Fed (22%) | FICA (7.65%) | Net After Fed + FICA | Net After +9% State Scenario |
|---|---|---|---|---|
| $10,000 | $2,200 | $765 | ~$7,035 | ~$6,135 |
| $25,000 | $5,500 | $1,913 | ~$17,587 | ~$15,337 |
| $50,000 | $11,000 | $3,825 | ~$35,175 | ~$30,675 |
| $75,000 | $16,500 | $5,738 | ~$52,762 | ~$46,012 |
| $100,000 | $22,000 | $7,650 | ~$70,350 | ~$61,350 |
| $150,000 | $33,000 | $11,475 | ~$105,525 | ~$92,025 |
The table assumes the entire vest remains below the 2026 Social Security wage base and ignores Additional Medicare Tax. Employee Social Security is 6.2% up to $184,500 of wages; Medicare is 1.45% with no cap, and employers begin withholding an additional 0.9% Medicare tax after wages paid to an employee exceed $200,000 during the year. Prior salary can change the FICA on a vest.
Stock option types: tax treatment comparison
| Option Type | Regular Tax at Exercise | Employment Tax | Tax at Sale | Key Risk |
|---|---|---|---|---|
| NSO / NQSO | Compensation income on spread in the usual case | Generally Social Security and Medicare wages | Capital gain/loss after exercise using adjusted basis | Withholding and broker basis may not equal final tax reporting |
| ISO — qualifying disposition | No regular federal income at exercise | Exercise/disposition remuneration generally excluded from Social Security and Medicare wages | Generally capital gain if holding rules are met | Exercise spread can create an AMT adjustment |
| ISO — disqualifying disposition | No regular federal income at exercise | Statutory-option employment-tax exclusion generally still applies | Ordinary compensation may apply, with remaining capital gain/loss | Ordinary-income amount depends on sale facts |
| ESPP — qualifying disposition | Generally none at purchase under a qualifying plan | Statutory-option employment-tax rules apply | May combine ordinary income and capital gain | Holding-period and plan-price rules matter |
A qualifying ISO disposition generally requires holding until the later of one year after the shares were transferred at exercise and two years after grant. The stock option calculator measures the spread and applies a planning rate; it does not calculate Form 6251 AMT.
Official equity-tax sources
See IRS Publication 15 for 2026 withholding and payroll-tax rates, IRS Topic 427 for stock-option treatment, and IRS Publication 525 for statutory/nonstatutory option and basis rules.
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 can combine wage income, investment sales, basis adjustments, and AMT reporting. Check current support for the forms your return needs:
TurboTax↗ — tax-filing software option for compensation and investment income
H&R Block↗ — filing software plus professional-help options for more complex equity situations
FreeTaxUSA↗ — lower-cost filing option; verify current support for your specific forms
Affiliate links — we may earn a commission at no cost to you.
RSU and stock option tax: FAQs
How are RSUs taxed?
RSUs generally create wage income when vested shares are delivered. The fair market value included in wages is generally reported on Form W-2 and is subject to federal income-tax withholding plus applicable Social Security, Medicare, and state/local payroll taxes. A later stock sale is a separate capital-gain or loss event measured from the shares’ adjusted tax basis.
How much tax do I pay on RSU vesting?
There is no single RSU tax rate. An employer may use the 22% optional flat federal withholding method for separately identified supplemental wages up to $1 million, but final income tax depends on total annual income, deductions, filing status, and state/local rules. FICA also depends on wages already earned during the year, including the $184,500 Social Security wage base for 2026.
When do I pay tax on stock options?
Tax timing depends on option type. In the common NSO case, the spread between fair market value and strike price is compensation income at exercise. ISOs generally do not create regular federal income at exercise, but the spread can create an AMT adjustment. Tax is determined again when acquired shares are later sold.
What is the difference between NSO and ISO stock option taxes?
NSOs generally create compensation income on the exercise spread and are usually subject to employment taxes. ISOs receive special regular-tax treatment: exercise generally does not create regular income or Social Security/Medicare wages, but the exercise spread can affect AMT. A qualifying ISO sale generally requires meeting both the one-year-from-exercise and two-year-from-grant holding rules.
Are capital gains from selling vested RSU shares taxed differently?
Yes. The value already included as compensation at vesting is not taxed again as a capital gain. When shares are sold, only the difference between sale proceeds and adjusted tax basis is a capital gain or loss. A holding period of more than one year generally produces long-term rather than short-term capital-gain treatment.
Can equity compensation push me into a higher tax bracket?
Yes. RSU wage income and NSO exercise income can stack on top of salary and other taxable income. That can place part of the additional income in a higher marginal bracket, which is one reason payroll withholding on an equity event may be less than the final tax attributable to the year as a whole.
Do I owe tax if I don't sell my RSU shares?
Yes, once RSU shares are delivered and included in wages, that compensation tax event generally does not depend on whether you keep the shares. Holding the shares creates a separate investment position; a later price increase or decrease becomes a capital gain or loss when the shares are sold.