Equity compensation

RSU Calculator

Estimate vested RSU value, tax owed at vest, and your real take-home equity.

Last data update: May 26, 2026 · 2026 IRS supplemental wages rules; FICA wage base $176,100; standard 4-year vesting industry practice

Total RSU grant (shares)

Total grant before vesting.

Current stock price

FMV per share today.

Annual price growth

Use 0% to stay conservative.

Vesting schedule

Tech default = 4-yr cliff.

Annual base salary

Used for bracket lookup.

Filing status

State tax rate

0 for TX, FL, WA, NV.

Marginal federal

Year-1 vest at this rate.

Total grant value

Vest value sum over years

Total taxes

Federal + FICA + state, all vests combined

Total take-home

You keep of grant value

Year-by-year vesting breakdown

Year	Shares	Price	Vest value	Federal	FICA	State	Take-home

Total		—

Heads up: your employer will under-withhold

Most employers withhold federal income tax on RSU vests at a flat 22% supplemental rate (or 37% on cumulative supplemental wages above $1M for the year). Your actual marginal bracket is , so each year-1 vest under-withholds federal by roughly . Plan for a quarterly estimated payment (IRS Form 1040-ES) or adjust your W-4 to add extra withholding — otherwise this becomes a surprise bill in April.

Estimate only. Capital gains/losses on shares held after vest are taxed separately when sold.

How to use this calculator

Enter the total RSU grant you received in shares (a typical new-hire grant at a tech company runs 500–5,000 shares). This is the full grant size before any vesting.

Enter the current stock price in USD per share. If you want to model price growth, enter an annual growth rate; leave it at 0% to stay conservative — future stock price is the single largest unknown in your RSU outcome.

Enter your annual base salary. The calculator stacks each year's vest on top of your salary to find the correct federal marginal bracket. RSUs are W-2 income at vest, not a separate tax category.

Pick your filing status (Single / MFJ / Head of household) and enter your state income tax rate (use 0 for TX, FL, WA, NV, NH, SD, TN, AK, WY). The default vesting schedule is the industry-standard 4-year cliff: 25% vests at the 1-year anniversary, then the remaining 75% across years 2–4.

The year-by-year table shows shares vested, vest value, federal tax at your marginal bracket, FICA, state tax, and take-home in share value. This is the tax you actually owe — your employer's flat 22% supplemental withholding is almost always lower than this for tech-salary earners.

Calculation method

RSUs are taxed as ordinary W-2 income at the moment they vest, not when granted and not when sold. We model the full bill in four parts.

1. Vest value = ordinary income

At each vesting event: vest value = shares vested × FMV (stock price on vest date). This dollar amount is added to your W-2 wages for the year. If you project price growth, we apply price × (1 + growth)^year at each vest.

2. Federal income tax at your marginal bracket

We compute total ordinary income for the year (salary + vest value), subtract the 2026 standard deduction, then apply the 2026 IRS brackets to find your marginal rate. The vest value is then taxed at that marginal rate — a more accurate estimate than the flat 22% supplemental withholding most employers use.

Rate	Single taxable income
10%	$0 – $11,600
12%	$11,600 – $47,150
22%	$47,150 – $100,525
24%	$100,525 – $191,950
32%	$191,950 – $243,725
35%	$243,725 – $609,350
37%	over $609,350

MFJ thresholds are roughly 2× the single values; HoH thresholds sit in between. The 2026 standard deduction is $14,600 (single), $29,200 (MFJ), $21,900 (HoH).

3. FICA — tracked year by year

Social Security: 6.2% on the first $176,100 of total W-2 wages (salary + vest). The wage base resets each year, so we track cumulative wages per year, not cumulative across the grant.
Medicare: 1.45% on all wages (no cap).
Additional Medicare: extra 0.9% on wages over $200,000 (Single / HoH) or $250,000 (MFJ) per year.

4. State income tax

Applied as a flat rate against the vest value. For progressive states (CA, NY, OR, MN, HI) the true rate may run 1–3 percentage points higher than your average rate — check a state-specific calculator if you're in the top bracket.

The 22% withholding trap

Employers withhold federal income tax on RSU vests at a flat 22% supplemental rate (or 37% on cumulative supplemental wages above $1M for the year). If your marginal bracket is 32%, 35%, or 37%, the 22% withholding leaves a 10–15 percentage point shortfall — meaning a surprise tax bill in April. The calculator's "Federal" column shows what you actually owe; expect to owe more than your W-2 already had withheld for the year.

After vest: capital gains, not ordinary income

Once a share vests it has a cost basis equal to the vest-day FMV (which you already paid ordinary income tax on). If you sell later, only the difference between sale price and vest-day FMV is a capital gain — long-term (0%/15%/20%) if held ≥ 1 year from vest, short-term (ordinary rates) if sold sooner. Selling at vest locks in the value you already owe tax on with no further gain or loss.

Examples

1,000 shares at $150, $150k salary, single filer, 5% state

Year 1 cliff vest: 250 shares × $150 = $37,500 ordinary income on top of $150k salary. Combined $187,500 lands in the 24% federal bracket, so federal tax on the vest is ~$9,000. FICA: Social Security caps at $176,100 (mostly used by salary), Medicare 1.45% = ~$544. State 5% = $1,875. Year 1 take-home in shares: ~$26,080 (about 70% of vest value). Years 2–4 repeat at the same federal rate assuming flat price. Over 4 years: $150,000 gross vest value, ~$45k in federal/FICA/state, ~$105k take-home in shares.

Note: employer withholds only $8,250 federal (22% × $37,500) per vest — you owe ~$750 more per year at filing, manageable.

2,000 shares at $300, $250k salary, single filer (high earner)

Year 1 vest: 500 shares × $300 = $150,000 on top of $250k salary. Combined $400k puts the vest squarely in the 35% bracket. Federal tax on vest = ~$52,500. FICA Medicare = ~$2,175 plus Additional Medicare 0.9% on income above $200k = ~$1,800. State 5% = $7,500. Year 1 take-home: ~$86,025 (~57% of vest value). Critical: employer withholds $33,000 (22%) but you owe $52,500 federal — a $19,500 surprise tax bill per year. Make a quarterly estimated payment or adjust W-4 to avoid penalties.

500 shares at $80, $90k salary, MFJ, 0% state (Texas)

Year 1 vest: 125 shares × $80 = $10,000 on top of $90k. MFJ combined $100k stays in the 12% federal bracket. Federal on vest ~$1,200. FICA = $765. State = $0. Year 1 take-home: ~$8,035 (about 80% of vest value). Here the 22% supplemental withholding ($2,200) actually over-withholds — you get a refund at tax time.

Frequently Asked Questions

The 22% flat rate is a federal supplemental-wages default that only matches reality if your marginal bracket happens to be 22%. Most tech employees with RSUs sit in the 24%, 32%, 35%, or 37% bracket once salary plus vest is combined — so the 22% withholding under-shoots by 2–15 percentage points. At year-end you owe the difference. Common fixes: (1) make quarterly estimated tax payments via IRS Form 1040-ES, or (2) submit a new W-4 with extra withholding to your employer.

You've already paid ordinary income tax on the vest-day value — holding doesn't save tax on what already happened. The question is whether you believe the stock will outperform a diversified index over the long term. Most financial advisors recommend selling at vest and reinvesting elsewhere because (a) you're already overexposed to your employer via your paycheck, and (b) selling at vest creates no additional tax event since cost basis equals vest-day FMV. Holding only makes sense if you have high conviction and don't need the diversification.

You still owe ordinary income tax on the vest-day value, not the current value — this is the classic RSU pain point. If you held and the stock fell, the difference between vest-day FMV and your eventual sale price is a capital loss, which can offset $3,000/year of ordinary income (excess carries forward). It does not refund the original income tax. This is the reason "sell at vest" is the conservative default.

No, but it can feel that way. RSUs are taxed once at vest as ordinary income (the full FMV). If you hold and the price rises, the additional gain is taxed once more as a capital gain when you sell — long-term rates (0/15/20%) if held ≥ 1 year from vest, short-term (ordinary rates) if sold sooner. If you sell at vest with no further appreciation, there is no second tax event.

Unvested RSUs are forfeited. You walk away with only the shares that have already vested. This is why the 1-year cliff matters: leave at month 11 and you get zero. Some companies offer accelerated vesting on acquisition or death/disability, but voluntary departure forfeits the unvested portion. Time job changes around vest dates if a large block is about to land.