We built this tool RSU Tax Calculator to help you Calculate Restricted Stock Units (RSU). Input key details like number of shares, stock price at vesting, income tax bracket, state/local tax rates, and Social Security/Medicare contributions. Calculate federal, state, and FICA taxes, net shares after withholding, total tax liability, and effective tax rate. Ideal for employees, financial planners, and HR professionals seeking to understand post-tax RSU value, optimize equity compensation, and plan for tax obligations. Includes tips on tax optimization and disclaimers for accuracy
RSU Tax Calculator
Calculate your Restricted Stock Unit taxes with precision
Tax Calculation Results
RSU Tax Explanation
Understanding RSU Taxation
Taxation Timeline
1. Vesting Date
Taxable Event: RSUs are taxed as ordinary income when they vest
Taxable amount = Fair Market Value (FMV) at vesting
Withholding Taxes:
Federal (typically 22% for income $1M)
State/local taxes (varies by jurisdiction)
FICA taxes (7.65%)
Often handled through "sell-to-cover"
Reporting:
Included in W-2 as compensation
Possible additional taxes if marginal rate > withholding rate
2. Sale of Shares
Capital Gains Tax:
Short-Term (≤1 year): Taxed as ordinary income
Long-Term (>1 year): 0%, 15%, or 20% rates
Cost Basis: FMV at vesting date
Profit = Sale price - Cost basis
Key Considerations
Immediate Sale: Avoids capital gains tax but eliminates upside potential
Market Risk: Holding shares exposes to price fluctuations
Jurisdiction: Rules vary by country (US-focused explanation)