Restricted Stock Unit (RSU) Tax Calculator

Estimate your after-tax RSU payout with this calculator. It helps employees, financial planners, and savers account for federal, state, and payroll taxes. Use it to plan your personal budget around vesting events.
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RSU Tax Calculator

Estimate taxes on your restricted stock unit vesting

Tax Breakdown

Total Vesting Value$0.00
Federal Tax Liability$0.00
State Tax Liability$0.00
FICA Tax Liability$0.00
Total Tax Liability$0.00
After-Tax Value$0.00
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How to Use This Tool

  1. Enter the total number of RSUs vesting in the first input field.
  2. Input the current stock price per share at the time of vesting.
  3. Add your marginal federal income tax rate, state income tax rate, and FICA (payroll) tax rate. The FICA rate defaults to 7.65%, which is standard for most earners.
  4. Select whether you will sell shares to cover tax liability, or pay taxes out of pocket.
  5. Click the Calculate Tax button to view your detailed tax breakdown.
  6. Use the Reset button to clear all fields and start over.

Formula and Logic

This calculator uses standard IRS rules for RSU taxation. RSUs are taxed as ordinary income at the time of vesting, based on the fair market value of the shares on the vesting date.

  • Total Vesting Value = Number of RSUs Vesting × Stock Price per Share
  • Federal Tax Liability = Total Vesting Value × (Federal Marginal Tax Rate / 100)
  • State Tax Liability = Total Vesting Value × (State Income Tax Rate / 100)
  • FICA Tax Liability = Total Vesting Value × (FICA Tax Rate / 100)
  • Total Tax Liability = Federal Tax + State Tax + FICA Tax
  • After-Tax Value = Total Vesting Value - Total Tax Liability

If you choose to sell shares to cover taxes, the calculator estimates the number of shares you need to sell to cover your full tax liability, and the remaining shares you will own.

Practical Notes

  • RSUs are taxed as ordinary income, not capital gains, at the time of vesting. Any gains or losses from the vesting price if you sell shares later are subject to capital gains tax.
  • Marginal federal tax rates range from 10% to 37% for the 2023 tax year. Check your latest pay stub or tax return to find your marginal rate.
  • FICA taxes include Social Security (6.2% on income up to the wage base limit) and Medicare (1.45% on all income, plus an additional 0.9% for high earners). The default 7.65% applies to most earners below the wage base limit.
  • Some states do not collect state income tax, which will reduce your total tax liability on RSU vesting.
  • Employers are required to withhold taxes on RSU vesting, but may withhold at a flat rate rather than your marginal rate. You may owe additional taxes when you file your annual return.

Why This Tool Is Useful

Employees receiving RSUs often face unexpected tax bills if they do not plan for the tax liability. This calculator helps you estimate your take-home value before vesting, so you can adjust your budget or withholding accordingly.

Financial planners can use this tool to model client cash flow around vesting events, and savers can plan whether to hold or sell vested shares based on their after-tax payout.

It eliminates guesswork by breaking down tax liability into federal, state, and payroll components, so you understand exactly where your tax dollars are going.

Frequently Asked Questions

Are RSUs taxed differently than stock options?

Yes. RSUs are taxed as ordinary income when they vest, based on the full fair market value of the shares. Non-qualified stock options (NSOs) are taxed when you exercise them, while incentive stock options (ISOs) have more complex tax treatment that may qualify for capital gains rates if holding requirements are met.

Do I have to sell shares to cover RSU taxes?

Most employers automatically sell a portion of your vested RSUs to cover required tax withholdings. You can also choose to pay taxes out of pocket to retain all vested shares, depending on your employer's plan rules.

How do state taxes affect my RSU payout?

If you live in a state with income tax, the vesting value of your RSUs is subject to state tax in addition to federal and payroll taxes. States with no income tax will not withhold state tax on RSU vesting, increasing your after-tax payout.

Additional Guidance

  • Review your employer's RSU plan document for specific withholding rules, as some employers may withhold at a flat 22% rate for supplemental income.
  • Track your RSU vesting dates to avoid surprises during tax season. Large vesting events may push you into a higher tax bracket.
  • If you receive large RSU vestings, you may need to make estimated tax payments to avoid underpayment penalties from the IRS.
  • Consider consulting a certified public accountant (CPA) or tax professional for personalized advice, especially if you have complex income sources.