RSU Tax Calculator: After-Tax Value at Vesting (2026)
Estimate how much of your RSU vest you keep after tax. RSUs are taxed as ordinary income at vesting — federal withholding is typically 22% (supplemental rate) plus FICA and state tax. On a $50,000 vest, total tax is approximately $15,000–$22,000 depending on state.
On this page: Calculator · Withholding reference · How RSU tax works · FAQs
RSU tax calculator
Enter the number of shares vesting, the share price on vest date, and your estimated total tax rate to see gross value, estimated tax, and after-tax payout.
Federal withholding is typically 22% (supplemental rate) + FICA (~7.65%) + state tax. California adds ~9–13%; Texas/Florida add 0%. Total effective rate: 30–42% depending on state and income level. See the reference table below.
Gross RSU value: $
Estimated tax: $
After-tax value: $
Effective tax rate: %
RSU withholding reference: estimated after-tax by vest value (2026)
Federal withholding on RSUs is 22% supplemental rate for most employees. FICA adds approximately 7.65% (capped at $176,100 Social Security wage base). State tax is additional. Estimates below assume no prior salary income against the FICA cap:
| RSU Vest Value | Fed Withholding (22%) | FICA (~7.65%) | After Fed + FICA (no state) | After All Tax — TX/FL | After All Tax — CA (~10%) |
|---|---|---|---|---|---|
| $10,000 | $2,200 | $765 | ~$7,035 | ~$7,035 | ~$6,035 |
| $25,000 | $5,500 | $1,913 | ~$17,587 | ~$17,587 | ~$15,087 |
| $50,000 | $11,000 | $3,825 | ~$35,175 | ~$35,175 | ~$30,175 |
| $75,000 | $16,500 | $5,738 | ~$52,762 | ~$52,762 | ~$45,262 |
| $100,000 | $22,000 | $7,650 | ~$70,350 | ~$70,350 | ~$60,350 |
| $150,000 | $33,000 | $9,932* | ~$107,068 | ~$107,068 | ~$92,068 |
*FICA Social Security capped at $176,100 wage base. Medicare (1.45%) continues above that. If your salary already exceeds $176,100 before vesting, Social Security withholding on the RSU may be lower or zero — only Medicare applies. Use the calculator above with your actual marginal rate for a more precise estimate.
If your marginal rate is above 22% (32%, 35%, or 37%), the 22% supplemental withholding underpays your actual tax — you will owe the difference at filing. Consider making additional estimated tax payments in the quarter of your vest to avoid underpayment penalties.
How RSU taxes work (2026)
At vesting — ordinary income
When RSUs vest, the fair market value of the shares on the vest date is treated as ordinary income — the same as salary. It appears on your W-2, is subject to federal income tax, FICA, and state income tax, and is withheld by your employer. Most employers use sell-to-cover: they automatically sell enough shares to cover the withholding and deposit the remainder into your brokerage account.
Example: 100 shares vest at $100/share = $10,000 gross value. At 30% total withholding, the employer sells 30 shares ($3,000) to cover taxes and you receive 70 shares ($7,000 after-tax value).
After vesting — capital gains on appreciation
Once the shares are in your account, your cost basis is the vest-date price. If you hold the shares and sell later at a higher price:
- Gain is short-term (ordinary income rate) if sold within 12 months of vest
- Gain is long-term (0%, 15%, or 20%) if held more than 12 months from vest
- If the price drops below vest-date value, you have a capital loss deductible against gains
Tax rates that apply at vesting
| Tax | Rate | Cap / Notes |
|---|---|---|
| Federal income (supplemental withholding) | 22% | 37% above $1M; actual marginal rate may differ |
| Social Security | 6.2% | Capped at $176,100 wage base (2026) |
| Medicare | 1.45% | No cap; +0.9% above $200k single / $250k married |
| California state | ~9–13.3% | Progressive; supplemental rate typically 10.23% |
| New York state | ~6.85–10.9% | Varies by income; NYC adds additional city tax |
| Texas / Florida state | 0% | No state income tax |
For the full equity tax picture including stock options and ISOs, see the equity compensation tax calculator hub or the stock option tax calculator.
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 — handles RSU vesting income, sell-to-cover, and capital gains on held shares
- H&R Block — file with a tax professional for large RSU vests or multi-state situations
- FreeTaxUSA — handles W-2 RSU income and Schedule D at low cost
Affiliate links — we may earn a commission at no cost to you.
Related calculators
- Stock option tax calculator Estimate tax on NSO exercise and ISO capital gains — including AMT analysis
- 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?
RSUs are taxed as ordinary income at vesting — the fair market value of 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 for most employees (37% above $1 million). FICA also applies: Social Security (6.2% up to $176,100) and Medicare (1.45%). On a $50,000 vest, total tax at vesting is approximately $15,000–$22,000 depending on state.
Are RSUs taxed even if I don't sell them?
Yes. RSUs are taxed at vesting regardless of whether you sell or hold 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 never sell. If you hold the shares and the price drops after vesting, you still owe tax on the higher vest-date value. This is why many employees sell a portion immediately to cover the tax bill.
Why is my RSU tax rate higher than expected?
RSU income is supplemental income, typically withheld at the flat 22% federal supplemental rate plus FICA (~7.65%) plus state income tax. In California, total withholding can reach 35–40%. Additionally, large RSU vests in a single year stack on top of your salary, potentially pushing income into higher marginal brackets (32%, 35%, or 37%), meaning the 22% withholding underpays your actual tax obligation — creating a balance due at filing. See the marginal vs effective tax rate guide for how bracket stacking works.
What is sell-to-cover for RSU taxes?
Sell-to-cover is the most common employer method for handling RSU withholding. Your employer automatically sells a portion of the vested shares to cover the estimated tax bill, and you receive the remaining shares. For example: 100 shares vest at $100 each ($10,000 gross), 30% withholding = employer sells 30 shares and you receive 70 shares ($7,000 after-tax value). The shares sold to cover are not a separate capital gains event — that portion is already treated as ordinary income on your W-2.
Do I pay capital gains tax on RSU shares after vesting?
Yes, but only on appreciation above the vest-date price. If you hold RSU shares after vesting and sell at a higher price, the gain above the vest-date fair market value is taxed as capital gains — long-term rate (0%, 15%, or 20%) if held over 12 months from vest, short-term rate (ordinary income) if held 12 months or less. The vest-date value is already taxed as ordinary income. Use the capital gains tax calculator to estimate tax on subsequent appreciation.
Can I reduce taxes on RSU vesting?
Some strategies that may reduce RSU tax impact: maximizing pre-tax 401k or HSA contributions in high-vest years reduces taxable income; holding vested shares over 12 months converts any gain to long-term capital gains rates; in lower-income years (career break, job change), vesting events fall into lower brackets. An 83(b) election does not apply to RSUs — only to restricted stock awards. Consult a tax professional for advice specific to your equity compensation situation.
Does this calculator include future stock price changes?
No. This calculator estimates taxes based on the share price at vesting only. Future price movements after vesting affect capital gains when you eventually sell, not the income tax owed at vesting.
Is this calculator tax or financial advice?
No. This tool provides general estimates for informational purposes only and does not constitute tax, legal, or financial advice. Consult a tax professional for advice specific to your equity compensation situation.