RSU Calculator
RSU Tax Calculator
Your employer withholds 22% on RSUs, but your actual tax rate is likely 32-37%. Calculate the true tax cost of your RSU vest and see how much you need to set aside.
RSU Vesting Details
Advanced Options
Include other RSU vests expected this year
Most employers withhold 22% (supplemental rate). Some allow 37%.
Net RSU Value (After Taxes)
$32,150
Gross RSU Value
$50,000
Effective Tax Rate
35.7%
Withholding Shortfall
Consider adjusting your W-4 or making estimated tax payments to avoid a surprise bill.
Tax Breakdown on RSUs
Where Your RSU Goes
Net
64.3%
Federal
24.0%
State
9.3%
FICA
2.4%
Your Marginal Tax Rates
Federal Marginal Rate
32%
State Marginal Rate
9.3%
Total Income
$300,000
Supplemental Gap
+10% owed
* Estimates based on 2026 tax brackets. RSUs are taxed as ordinary income at vesting. Does not include potential capital gains from holding shares after vest. Consult a tax professional for personalized advice.
Why Your RSU Withholding Falls Short
When RSUs vest, they're taxed as ordinary income—just like your salary. The IRS allows employers to withhold at a flat 22% "supplemental rate" for bonuses and RSUs, regardless of your actual tax bracket.
But here's the problem: if you're a high earner, your marginal federal rate is likely 32%, 35%, or even 37%. That 10-15% gap creates a surprise tax bill.
Example: $100,000 RSU Vest
- Employer withholds: $22,000 (22%)
- You actually owe: ~$35,000+ (35%+ effective rate)
- Surprise tax bill: $13,000+
The Full RSU Tax Stack
* Up to $176,400 wage base in 2026
** On income over $200K (single) / $250K (married)
How to Avoid the Surprise Bill
1. Adjust Your W-4
File a new W-4 with your employer to increase withholding. This is often the easiest approach.
2. Make Estimated Tax Payments
Pay quarterly estimated taxes (Form 1040-ES) to cover the gap before April 15.
3. Request Higher Withholding at Vest
Some employers let you elect higher withholding (up to 37%) in your equity portal.
4. Set Aside Cash
Transfer ~15% of each RSU vest to a high-yield savings account earmarked for taxes.
Want the complete RSU tax guide?
Learn advanced strategies for managing RSU taxes, multi-state considerations, and how to optimize your equity compensation.