RSU Tax Calculator

Estimate the taxes you'll owe when your restricted stock units (RSUs) vest. See your federal, state, and FICA taxes, plus your after-tax value.

Enter Your RSU Details

Total RSU shares vesting at this time

$

Fair market value per share on vest date

Your marginal federal income tax rate

State where you pay income tax

Gross Value

$15,000

100 shares × $150

After-Tax Value

$8,257.50

55% take-home

Tax Breakdown45% total tax rate
Federal Tax$3,600
State Tax$1,995
Social Security$930
Medicare$217.50
After-Tax$8,257.50

Tax Details

Federal Income Tax$3,600
State Income Tax$1,995
Social Security (6.2%)$930
Medicare (1.45%)$217.50
Total Tax Withheld$6,742.50
Effective Tax Rate45%

How RSU Taxes Work

Restricted Stock Units (RSUs) are taxed as ordinary income when they vest - not when they're granted. The taxable amount equals the fair market value of the shares on the vesting date.

Tax Components on RSU Vesting

  • Federal Income Tax: RSU income is added to your regular income and taxed at your marginal tax rate (10% to 37%).
  • State Income Tax: Varies by state. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
  • Social Security Tax: 6.2% on income up to the annual wage base ($168,600 in 2024).
  • Medicare Tax: 1.45% on all income, plus an additional 0.9% on income over $200,000 (single filers).

Withholding vs. Actual Tax

Most employers withhold taxes at vesting by selling some of your shares ("sell-to-cover"). The standard supplemental income withholding rate is 22% federal, which may not match your actual tax bracket. Plan for potential additional taxes or refunds when filing.

RSU Guides by Company

See company-specific RSU details including vesting schedules, stock performance, and tax considerations:

Amazon RSUsGoogle RSUsMeta RSUsMicrosoft RSUsApple RSUsNVIDIA RSUs

Frequently Asked Questions

RSUs are taxed as ordinary income when they vest. The fair market value of the shares on the vesting date is added to your taxable income. You'll owe federal income tax, state income tax (if applicable), Social Security tax (6.2%), and Medicare tax (1.45%). Most employers automatically withhold taxes by selling some of your vesting shares.

RSU income is taxed at your marginal income tax rate, which depends on your total taxable income. Federal rates range from 10% to 37%. State tax rates vary by state - some states like Texas, Florida, and Washington have no state income tax. FICA taxes (Social Security and Medicare) are a flat rate of 7.65% combined.

Many employers use a flat 22% federal withholding rate for supplemental income like RSUs, regardless of your actual tax bracket. If you're in a higher bracket, you may owe additional taxes when you file. If you're in a lower bracket, you'll receive a refund. This calculator shows your estimated actual tax, not the withholding amount.

If you sell immediately at vesting, there's typically no additional tax. If you hold the shares and sell later at a higher price, you'll pay capital gains tax on the appreciation. Short-term gains (held less than 1 year) are taxed as ordinary income; long-term gains (held 1+ year) get preferential rates of 0%, 15%, or 20%.

Yes. Social Security tax (6.2%) only applies to income up to the annual wage base limit ($168,600 in 2024). If your year-to-date income before your RSUs vest exceeds this amount, you won't owe additional Social Security tax on your RSU income. Medicare tax has no cap.

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