Paycheck Guide · RSUs · 2026
RSU Tax Guide: How Restricted Stock Units Are Taxed at Vesting (2026)
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Restricted stock units generally become taxable compensation when they vest. The fair market value of the vested shares is ordinary wage income, even if you keep the shares instead of selling them.
Taxes at Vesting
Employers commonly withhold federal income tax using the current supplemental withholding rate (see IRS Publication 15). Social Security, Medicare, and applicable state withholding can also apply.
Selling Shares After Vesting
After vesting, a later sale can create a capital gain or loss based on the difference between the sale price and your tax basis. Vesting income and post-vesting investment gain are separate tax events.
Plan Around Vest Dates
Review upcoming vest dates, your employer's sell-to-cover process, and your year-to-date withholding. Large grants can justify help from a qualified tax professional.
Estimate RSU vesting take-home with your salary and state.
Use the RSU tax calculator →Frequently Asked Questions
How are RSUs taxed when they vest?
RSU vesting is taxed as ordinary income at the fair market value on the vest date. Most employers withhold using the current supplemental withholding rate (see IRS Publication 15) plus FICA and state taxes.
Do I owe taxes on RSUs I haven't sold?
Yes. You owe income tax when RSUs vest, regardless of whether you sell the shares.
Can I reduce RSU taxes?
Consider increasing 401(k) contributions in vest years to offset the additional income. Consult a tax professional for large grants.
Figures and methods are based on official-source data encoded in the calculator. Not tax advice. Review the methodology and consult a qualified professional for your situation.