RSU Tax Calculator
Estimate RSU vesting tax, after-tax value, sell-to-cover shares, and withholding gaps. Free 2026 calculator covering federal, state, FICA, and local rates.
RSU Tax Calculator
RSU Vest
Wages Before RSU
Filing Status
State and Local
Withholding
Estimates only. Not tax, legal, payroll, or investment advice.
Sell-to-Cover Shares
Tax Detail
Notes
- RSU withholding is not always the same as your final tax bill.
How the RSU tax calculator works
This calculator starts with shares vesting times the share price on the vest date. That amount is usually W-2 wage income, so the estimate includes federal income tax, state income tax, Social Security, Medicare, any Additional Medicare Tax, and optional local tax.
For federal and state tax, the calculator uses an incremental method: tax on wages plus the RSU vest, minus tax on wages before the vest. That is usually closer than treating the vest as one flat withholding rate.
RSU withholding vs. actual tax
Many employers withhold federal income tax on RSUs at the 22% supplemental wage rate. That may be enough, but it can under-withhold when the RSU income falls into the 24%, 32%, 35%, or 37% bracket.
The results keep estimated tax separate from estimated withholding. A positive gap means the vest may leave tax still due. A negative gap points to possible over-withholding that may come back as part of your refund.
FICA and state taxes on RSU income
RSUs are subject to Social Security tax until your wages reach the 2026 Social Security wage base of $184,500. Medicare tax has no wage cap, and Additional Medicare Tax can apply after wages cross the filing-status threshold.
State rules vary. No-income-tax states use 0%, while other states use the regular state tax estimate and an editable withholding rate. Add a local rate if your city or locality taxes wage income.
What this estimate does not cover
This tool does not calculate capital gain or loss after vest, alternative minimum tax for stock options, multi-state sourcing, employer plan rules, or broker cost-basis adjustments on Form 1099-B.
For paycheck planning after an equity vest, Pay44 can help you compare regular take-home pay across federal and state taxes.
Frequently Asked Questions
Common questions about rsu tax calculator
How are RSUs taxed when they vest?
RSUs are usually taxed as W-2 wages when they vest. The taxable amount is the share value on the vest date, minus anything you paid for the shares.
Are RSUs taxed as ordinary income or capital gains?
At vest, RSUs are ordinary wage income. A capital gain or loss can happen later if you sell the shares for a different price.
Why did my company withhold 22% on my RSUs?
The IRS lets employers use a 22% flat federal withholding rate for supplemental wages under $1 million. RSUs, bonuses, and commissions often follow that rule.
Is RSU withholding enough to cover my final tax bill?
Not always. Withholding is only a prepayment. If your marginal tax bracket is above 22%, a large RSU vest can leave more tax due when you file.
Do RSUs count for Social Security and Medicare tax?
Yes. RSU vest income is usually subject to Social Security tax up to the annual wage base and Medicare tax, including Additional Medicare Tax after wages cross the threshold.
How many RSU shares will be sold to cover taxes?
It depends on the vest value, tax rates, and whether payroll rounds fractional shares up. This calculator shows estimated withholding shares and shares left after withholding.
Do I owe state income tax on RSUs?
Most states tax RSU vest income as wages. States with no broad income tax, such as Texas, Florida, and Washington, use 0% in this estimate.
Should I make an estimated tax payment after a large RSU vest?
Maybe. If the calculator shows a large withholding gap, compare it with the rest of your tax picture or use the Pay44 W-4 Withholding Estimator before a tax deadline.