RSU Tax Calculator
Calculate the total tax on your RSU vest for 2026. Federal brackets (10-37% OBBBA), FICA ($184,500 SS wage base), and all 50 states. Compare selling at vest vs holding for long-term capital gains.
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How to Use This Calculator
Vesting Tax tab
The default tab. Enter your shares vesting, FMV per share, and filing status. The calculator shows your total tax: federal income tax at your actual marginal rate (not just the 22% flat withholding), FICA breakdown (SS + Medicare + Additional Medicare), and state tax. Expand "More options" to add your other W-2 income and select your state. The withholding gap section shows whether you'll owe money or get a refund at tax time.
Sell vs Hold tab
Compare two strategies: sell immediately at vest (no additional capital gains) or hold and sell later. If you hold over 12 months, appreciation above your cost basis (FMV at vest) is taxed at long-term capital gains rates (0%/15%/20%) instead of ordinary income rates (up to 37%). The calculator shows the dollar advantage of each strategy including NIIT (3.8%) for high earners.
Annual Plan tab
Project the year-by-year tax on your full RSU grant. Enter your total grant size, vesting schedule (4-year cliff, monthly, etc.), and expected stock growth rate. See how rising stock prices push you into higher brackets and how the SS wage base ($184,500) affects your FICA in each year.
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Every input is encoded in the URL. Click Share to send your exact scenario to a financial advisor, tax preparer, or partner.
The Formula
RSU vesting income is taxed as ordinary W-2 income. The total tax combines three components:
Federal Income Tax = Tax(W-2 + RSU income) − Tax(W-2 alone)
where Tax() uses 2026 brackets: 10/12/22/24/32/35/37%
FICA = SS (6.2% up to $184,500) + Medicare (1.45%)
+ Additional Medicare (0.9% above $200K/$250K MFJ)
State Tax = RSU Income × State Supplemental Rate
Cost Basis = FMV per share on vesting date
Capital Gain = Sale Price − Cost Basis
LTCG Tax = gain × 0%/15%/20% (if held >12 months)
The key insight: your employer withholds only 22% flat on RSU income (supplemental wage rate), but your actual marginal bracket may be 24%, 32%, or higher. This creates a withholding gap — the difference between what's withheld and what you actually owe. Plan for this by making estimated payments or adjusting your W-4.
Example
Kevin — Senior Engineer, San Francisco
Kevin earns $180K base salary (MFJ), receives 500 RSU shares vesting at $150/share FMV, and lives in California (10.23% state rate). He's considering whether to sell immediately or hold for 18 months expecting the stock to reach $180.
Vesting Tax tab
Kevin's employer withholds only 22% flat ($16,500), but his actual federal tax is $16,476 — nearly matching in this case. With higher income, the gap widens significantly.
Sell vs Hold tab
By holding 18 months, Kevin pays ~25% total tax on the $15,000 appreciation (15% LTCG + 10.23% CA) instead of up to 34% if he sold within 12 months. But he takes on concentration risk in a single stock.