RSU Tax Calculator: After-Tax Value at Vesting (2026)
Estimate the gross and after-tax value of an RSU vest using your own planning rate. RSU shares generally create W-2 wage income when they are delivered at vesting, but payroll withholding is only a prepayment: final tax depends on total annual income, filing status, deductions, wages already subject to FICA, and state/local rules.
On this page: Calculator · Withholding reference · How RSU tax works · FAQs
RSU tax calculator
Enter shares vesting, vest-date share price, and your estimated total planning tax rate to see gross value, estimated tax, and net value.
The federal 22% supplemental rate is a withholding method, not a universal RSU tax rate. Enter a total planning rate that reflects your federal, payroll, and state/local situation.
Gross RSU value: $
Estimated tax: $
After-tax value: $
Planning tax rate applied: %
RSU vesting and a later stock sale can produce both W-2 and brokerage reporting. For professional filing help, H&R Block↗ is one option. Affiliate link — we may earn a commission at no cost to you.
RSU withholding reference: illustrative vest scenarios (2026)
The table illustrates a common payroll scenario: the 22% optional flat federal supplemental-wage method plus 7.65% employee FICA, assuming the full vest remains below the 2026 Social Security wage base and ignoring Additional Medicare Tax. Employers may use another permitted federal withholding method, and withholding can differ from final tax.
| RSU Vest Value | Illustrative Fed (22%) | FICA (7.65%) | After Fed + FICA | After +10% State Scenario |
|---|---|---|---|---|
| $10,000 | $2,200 | $765 | ~$7,035 | ~$6,035 |
| $25,000 | $5,500 | $1,913 | ~$17,587 | ~$15,087 |
| $50,000 | $11,000 | $3,825 | ~$35,175 | ~$30,175 |
| $75,000 | $16,500 | $5,738 | ~$52,762 | ~$45,262 |
| $100,000 | $22,000 | $7,650 | ~$70,350 | ~$60,350 |
| $150,000 | $33,000 | $11,475 | ~$105,525 | ~$90,525 |
Employee Social Security is 6.2% only up to the $184,500 wage base for 2026. Medicare is 1.45% with no wage cap. Employers begin withholding an additional 0.9% Medicare tax after wages paid to an employee exceed $200,000 during the calendar year. Prior salary can therefore materially change payroll tax on a later RSU vest.
Withholding is not final tax. The tax ultimately attributable to a vest depends on the year’s complete income, deductions, credits, filing status, and payments.
How RSU taxes work (2026)
At vesting — compensation income
When vested RSU shares are delivered, their fair market value is generally included in wages and reported on Form W-2. Income-tax withholding and applicable Social Security, Medicare, and state/local payroll taxes are collected through payroll. Many plans use sell-to-cover, in which some newly delivered shares are sold to fund the withholding.
Withholding is not your final RSU tax rate
An employer may use the 22% optional flat federal method on separately identified supplemental wages up to $1 million, while other permitted situations use an aggregate method. The mandatory federal rate is 37% on supplemental wages above $1 million. Your final tax return instead applies the regular tax rules to total annual income.
After vesting — basis and capital gain or loss
The compensation value included at vesting generally becomes part of your basis in the shares. When shares are sold later, including a sell-to-cover disposition, the sale can be reportable even if the gain or loss is very small. Compare Form W-2, the brokerage confirmation, and Form 1099-B so compensation already taxed is not effectively taxed again through an understated basis.
- A sale after one year generally produces long-term capital gain or loss.
- A sale held one year or less is generally short-term.
- A price decline below adjusted basis can produce a capital loss.
2026 federal payroll-tax reference
| Item | 2026 Reference | RSU Planning Note |
|---|---|---|
| Supplemental federal withholding | 22% optional flat method; 37% mandatory above $1M | Withholding method, not final income-tax rate |
| Social Security | 6.2% up to $184,500 of wages | Prior salary can use the wage base before vesting |
| Medicare | 1.45% with no cap | Employer withholds another 0.9% after wages exceed $200,000 |
| State/local tax | Varies | Use the applicable payroll/state rules rather than a national flat estimate |
For stock-option treatment, see the stock option tax calculator.
Official RSU tax references
See IRS Publication 15 for 2026 supplemental-wage withholding and payroll-tax rates, and IRS Form 8949 instructions for reporting securities sales and basis adjustments.
Filing taxes with RSU income?
RSU vesting adds to your W-2 income and may require additional estimated payments or amended withholding. These tools handle equity-specific tax situations:
TurboTax↗ — tax-filing software option for compensation and investment income
H&R Block↗ — file with a tax professional for large RSU vests or multi-state 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.
Related calculators
- Stock option tax calculator Estimate an NSO exercise spread and compare ISO rules — with AMT reference guidance
- Capital gains tax calculator Estimate tax when selling vested RSU shares — short and long-term rates
- Bonus & severance tax calculator Same 22% supplemental withholding rules apply to bonuses as RSUs
- Marginal vs effective tax rate Why 22% withholding may underpay your actual tax on large RSU vests
RSU tax calculator: FAQs
How are RSUs taxed at vesting?
RSU shares generally create wage income when vested shares are delivered. The fair market value included in wages is generally reported on Form W-2 and subject to federal income-tax withholding, Social Security and Medicare taxes when applicable, plus state/local payroll taxes. Amounts withheld are prepayments and can differ from final income tax for the year.
Are RSUs taxed even if I don't sell them?
Yes. Once vested shares are delivered and their value is included in wages, the compensation tax event generally occurs whether you sell or keep the shares. A later price change is separate: when you sell, the difference between sale proceeds and adjusted basis becomes a capital gain or loss.
Why is my RSU tax rate higher than expected?
Payroll withholding and final tax are different calculations. An employer may use the 22% optional flat federal method for separately identified supplemental wages up to $1 million, while final federal liability is based on total taxable income. FICA and state/local taxes can add to withholding, and a large vest can place part of annual income in a higher marginal bracket.
What is sell-to-cover for RSU taxes?
Sell-to-cover means enough newly vested shares are sold to fund required withholding and the remaining shares are delivered to your account. The cover sale can still be a reportable stock sale. Because it occurs close to vesting, the gain or loss may be small, but reconcile sale proceeds and adjusted basis on brokerage records.
Do I pay capital gains tax on RSU shares after vesting?
Only on post-vesting gain, not on the same value already included as wages. Basis is generally tied to the value included in compensation at vesting. Selling above that adjusted basis creates a capital gain; selling below it generally creates a capital loss. Holding more than one year usually makes the gain long-term.
Can I reduce taxes on RSU vesting?
You generally cannot change the fact that vested RSU value is wage income once shares are delivered. Eligible pre-tax retirement or HSA contributions may reduce overall taxable income, but they do not erase the RSU compensation event and may not reduce FICA. Holding shares after vesting affects only later appreciation, and an 83(b) election generally does not apply to an RSU grant.
Does this calculator include future stock price changes?
No. The calculator uses the share price at vesting and a user-entered planning tax rate. Future price movements affect the capital gain or loss when shares are later sold, not the compensation value already included at vesting.
Is this calculator tax or financial advice?
No. This tool provides general planning estimates and does not constitute tax, legal, or financial advice. Equity compensation can involve payroll withholding, basis adjustments, and multi-state issues that require facts not entered here.