RSU Tax Calculator
Understand how your RSUs are taxed and plan for your tax bill
Calculate Your RSU Tax Liability
Build a full vesting schedule and estimate taxes using your actual grant details. If you're signed in, we can reuse your federal and state tax rates from your Account profile.
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RSU inputs
Model your RSU grants, vesting schedule, and taxes in one view.
RSU grants
Add grants and customize vesting structure and cadence.
RSU refreshers
Add recurring annual refreshers that stack on top of your base grants.
Common refresher pattern: annual grants that vest over 4 years, often quarterly.
Tax rates
Use your account rates or enter custom values.
Calculate results
Calculate vesting schedule, taxes, and the unvested balance chart.
Complete all required fields to enable calculation.
Results
Fill in all fields and click Calculate to see your vesting schedule and charts.
Understanding RSU Taxation
Restricted Stock Units (RSUs) are a form of equity compensation common at tech companies. Unlike stock options, RSUs are taxed at vesting—you can't defer the tax by delaying exercise. This makes tax planning essential for employees with significant RSU grants.
When Are RSUs Taxed?
RSUs are taxed at two points:
- At vesting - The fair market value is taxed as ordinary income (like salary). This is the major tax event and cannot be avoided.
- At sale - Any gain or loss from the vesting price to sale price is taxed as capital gains. If held 1+ year after vesting, it qualifies for long-term capital gains rates (0%, 15%, or 20%).
Why 22% Withholding Isn't Enough
Employers typically withhold a flat 22% for federal taxes on RSU vesting (the "supplemental wage" rate). But if your total income puts you in a higher bracket, you'll owe the difference at tax time:
- 24% bracket - You'll owe 2% more than withheld
- 32% bracket - You'll owe 10% more than withheld
- 35% bracket - You'll owe 13% more than withheld
- 37% bracket - You'll owe 15% more than withheld
Add state taxes (up to 13.3% in California) and you could owe an extra 20-25% on top of what was withheld.
RSU Tax Strategies
- Maximize retirement contributions - Max your 401(k), HSA, and FSA before RSUs vest to reduce your marginal tax rate
- Sell immediately vs hold - Selling immediately avoids additional stock risk. Holding for 1+ year qualifies gains for long-term capital gains rates
- Watch for wash sales - If you sell company stock at a loss within 30 days of RSU vesting, it triggers a wash sale and you lose the loss deduction
- Consider estimated payments - If under-withheld, make quarterly estimated tax payments to avoid penalties
- Donate appreciated shares - Donating RSU shares held 1+ year to charity avoids capital gains and gets you a deduction for the full value
RSU vs Stock Options: Tax Differences
Unlike RSUs, stock options offer more tax planning flexibility:
- NSOs (Non-Qualified Stock Options) - Taxed as ordinary income on the spread at exercise. You choose when to exercise.
- ISOs (Incentive Stock Options) - No regular tax at exercise (but AMT may apply). Taxed at sale as capital gains if held 1+ year.
- RSUs - Taxed at vesting with no choice on timing. You receive shares automatically.