Your RSU Vest Details
The closing price on your vest date.
IRS flat 22% supplemental wage rate — what most employers default to.
Optional: If You Sell the Shares
If empty, the sale projection is skipped.
Your RSU Tax Breakdown
Sell-to-Cover Analysis
⚠️ Your marginal rate is higher than 22%. Standard sell-to-cover withholding may leave you owing more at tax time.
Estimated shortfall at filing: $500
State-specific RSU tax guides
Metro-level vest data, withholding rates, and tactics for the highest-RSU states.
Equity compensation? Run it through the right calculator.
RSUs, ISOs, and stock sales are taxed differently. Pick the tool that matches your event.
ISO/AMT Calculator
Federal AMT exposure, exemption phaseout, and your AMT crossover point.
Calculate AMTCapital Gains Calculator
LTCG vs STCG, NIIT 3.8% surtax, and state tax on stock/crypto/RE sales.
Calculate gains taxStock-Comp Tax Guide
RSU vs NSO vs ISO vs capital gains — how each is taxed in plain English.
Read the guideHow RSU Taxes Work in 2026
When your Restricted Stock Units (RSUs) vest, the fair market value (FMV) of the shares becomes ordinary income on your W-2. The IRS treats it as supplemental wages, so your employer withholds federal income tax (typically a flat 22% under $1M, or 37% above), FICA (6.2% Social Security up to the $184,500 wage base + 1.45% Medicare on all wages), and state income tax.
Most employers use a sell-to-cover scheme: a portion of your vested shares is automatically sold to pay the withholding. The catch — federal default withholding is 22%, but your actual marginal bracket may be 32%, 35%, or 37%. That gap is the #1 source of unexpected tax bills for tech employees in California, New York, and Washington.
If you later sell the remaining shares, your cost basis is the FMV at vest (NOT $0). Holding more than 1 year qualifies any additional gain for long-term capital-gains rates (0%, 15%, or 20% depending on income). Holding less than 1 year means short-term rates — same as ordinary income. High earners may also owe the 3.8% Net Investment Income Tax (NIIT) above $200K (single) / $250K (MFJ) MAGI thresholds.
Got ISOs (with AMT) or NSOs (different withholding)? See our stock-comp tax guide →
Maxing your 401(k) on top of equity comp? See the 401(k) calculator for retirement projections — and the 2026 contribution limits page for mega-backdoor-Roth math.
Frequently Asked Questions
Why does my employer only withhold 22% when I'm in a higher bracket?
The IRS defaults flat-rate supplemental withholding to 22% for all employees with vest income under $1M for the year. Your employer is following the rules, but the result is under-withholding for anyone in the 24%, 32%, 35%, or 37% bracket. Plan for the gap by setting aside extra cash, making an estimated tax payment in the same quarter as the vest, or asking HR to apply a higher supplemental rate (some employers allow this).
What's my cost basis when I sell vested RSU shares?
Your cost basis is the FMV per share on the vest date — which is also the amount that was reported as ordinary income on your W-2. Many brokerages report a $0 cost basis on the 1099-B because they only see the share transfer, not the wage event. You'll need to manually adjust the basis when you file, or you'll be double-taxed on the same income.
Do I owe FICA on vested RSUs?
Yes. RSU vest income is treated like ordinary wages for FICA: 6.2% Social Security tax up to the 2026 wage base of $184,500 (combined with your salary), plus 1.45% Medicare on all wages. If your salary + RSU vest exceeds $200,000 (single) or $250,000 (MFJ), you also owe an additional 0.9% Medicare surtax on the excess.
How are RSUs taxed in California, New York, and Washington?
California taxes vested RSUs as ordinary income at marginal rates up to 13.3% — the highest in the US. New York adds up to 10.9% state plus NYC local tax up to 3.876%. Washington has no state income tax on wages, but does impose a 7% capital-gains tax on long-term gains over ~$270K — which only kicks in when you sell the shares, not at vest.
What happens if I leave my job before RSUs fully vest?
Unvested RSUs are typically forfeited when you leave. Already-vested shares are yours to keep. Some companies offer accelerated vesting on termination without cause or in change-of-control events — check your grant agreement.