RSU Tax — Coming Soon
RSU Tax Calculator 2026
A dedicated RSU vesting tax calculator is on our roadmap. In the meantime, here is how RSU taxation works in 2026.
How RSUs are taxed
Restricted Stock Units (RSUs) are taxed as ordinary income when they vest. The fair market value of the shares on the vesting date is included in your W-2 as wages, subject to federal income tax withholding, FICA (Social Security and Medicare), and state income tax withholding.
Most employers withhold shares to cover the tax obligation — a method called "sell-to-cover" or "net settlement." You receive fewer shares, but your withholding obligation is met without needing to sell shares yourself.
2026 withholding rates on RSU income
- Federal supplemental withholding: review IRS Publication 15 for the current method and percentage
- Social Security: 6.2% (subject to annual wage base)
- Medicare: 1.45% + 0.9% Additional Medicare Tax above the applicable threshold
- State: varies by state supplemental withholding rate
Estimate RSU tax now
Until a dedicated RSU calculator is available, you can estimate your tax on RSU income by entering your total expected W-2 income (salary + RSU vest amount) into the paycheck calculator and comparing against salary-only take-home.
Estimate your take-home on total comp including RSUs using the paycheck calculator.
Open calculator →Frequently Asked Questions
How are RSUs taxed at vesting?
When RSUs vest, the fair market value of the shares on the vesting date is treated as ordinary income. Employers commonly withhold federal income tax using a supplemental-wage method, plus Social Security, Medicare, and applicable state withholding.
What is the standard RSU withholding rate?
Review IRS Publication 15 for the current federal supplemental-wage withholding method and percentage. State withholding methods vary. The actual tax owed depends on your total income for the year and marginal bracket at filing.
Do I owe additional tax on RSUs at filing?
Possibly. Payroll withholding may be lower or higher than your final tax liability. Consider consulting a qualified professional if you vest a large RSU grant mid-year.
Is there a dedicated RSU tax calculator on this site?
Full RSU calculation — including vesting schedule, net share proceeds after withholding, and state-by-state impact — is on our product roadmap. In the meantime, you can estimate RSU tax impact by entering your total W-2 income (including RSU income) into the paycheck calculator.
Estimates only. Not tax, legal, or accounting advice. Terms of Service · Privacy Policy