RSU Tax Calculator — Withholding, Vest Value & Net Shares
Restricted stock tax calculator for RSU vesting income and supplemental withholding. US equity comp. Try free—no signup.
Last updated 2026-05-28 · Davi Baptista
Read also: Full calculator guide, US tax & equity compensation guide, RSU vesting & tax guide
How it works
An RSU tax calculator models withholding and net shares when restricted stock units vest at fair market value as W-2 income.
This RSU tax calculator models withholding and net shares when restricted stock units vest at fair market value. A restricted stock tax calculator should separate federal supplemental withholding from true marginal tax due in April. Enter grant value, vest schedule, and bracket assumptions for RSU tax calculator estimates on W-2 income spikes. RSU tax calculator math ignores multi-state allocation and ESPP interactions—use as a planning starting point. Pair the restricted stock tax calculator with our US tax guide for ISO, NSO, and diversification notes.
RSU vesting and withholding
Restricted stock units (RSUs) are taxed as W-2 income when they vest at fair market value. Employers typically withhold shares (sell-to-cover) or cash for federal and state taxes.
Cost basis for a later sale equals FMV included in W-2 on vest date. Gain or loss after vest is capital gain treatment if shares are held in a brokerage account.
Stack RSU income with bonus and ISO exercises when estimating marginal rate—under-withholding leads to balance due in April.
Guide, examples, and methodology
RSU tax calculator
Restricted stock units vest as W-2 income at fair market value. Model supplemental withholding versus your marginal bracket to see net shares after sell-to-cover.
Restricted stock tax calculator
Large vests can push you into higher brackets and affect ACA subsidies or credit phase-outs—plan before vest dates.
How to use this RSU tax calculator
Enter the number of restricted stock units (RSUs) vesting, fair market value per share on vest date, estimated federal withholding rate, and optional state tax rate. RSUs are taxed as W-2 income when they vest—employers typically withhold shares or cash for taxes. The calculator shows gross vest value, estimated withholding, net shares or cash after tax, and optional growth if you model holding period appreciation.
Unlike ISOs, RSUs are straightforward ordinary income at vest. There is no exercise price—value equals shares × FMV. Subsequent sale of vested shares triggers capital gain or loss on change in price after vest. This tool focuses on vest-day tax mechanics; sale modeling uses your cost basis equal to FMV included in W-2.
Example (USD): 1,500 RSUs vest at $88/share
| Line item | Amount | Notes |
|---|---|---|
| Gross vest | $132,000 | 1,500 × $88 |
| Federal withhold (22% illustrative) | −$29,040 | Supplemental rate may apply |
| Net shares if sell-to-cover | ~1,170 | Depends on employer method |
| Cost basis for future sale | $88/share | From W-2 income reported |
Withholding methods
Sell-to-cover: employer sells just enough shares to cover withholding and delivers net shares. Net settlement: employer withholds shares and you receive the remainder. Cash payment of tax: you fund taxes from other cash and keep all shares—requires liquidity planning. Under-withholding leads to a balance due at filing even if paycheck withholding looked adequate.
RSU vs stock options for employees
RSUs are full-value awards taxed at vest; options give leverage but require exercise decisions and may trigger AMT (ISO) or ordinary income (NSO). High-growth companies often grant RSUs for predictability; early-stage firms may use options. Total compensation review should include both vest schedules and concentration in employer stock.
How we calculate
Gross vest = shares × FMV. Withholding = gross × combined federal/state rates you enter (defaults are illustrative—not your employer's exact supplemental wage rate). Net value = gross minus withholding. We do not model FICA wage base caps, Medicare surtax, or multi-state allocation.
Common mistakes
- Treating RSU vest like a bonus without planning for share count delivered after sell-to-cover.
- Forgetting cost basis step-up at vest when computing gain on a later sale.
- Holding all net shares without rebalancing employer concentration risk.
- Missing state tax on vest when working remotely across states in the vest year.
- Assuming 22% withholding covers final liability for high earners in top brackets.
Related tools
If you also hold ISOs, run the stock option AMT calculator before a large exercise in the same year as RSU vests. For diversified investing after vest, compare dollar-cost averaging versus lump-sum deployment using our DCA and compound interest calculators.
Related calculators in this topic
- S Corp Tax Calculator
- C Corp vs S Corp Tax Calculator
- Crypto Capital Gains Tax Calculator (Free)
- Capital Gains Tax Calculator
Frequently asked questions
What is the difference between RSUs and stock options?
RSUs represent a commitment to deliver a share at no cost once vesting requirements are met. Stock options give you the right to purchase shares at a specific discount (strike price), meaning you must pay cash to exercise them.
Why is tax withheld on the vesting date of RSUs?
This is known as 'Sell-to-Cover'. Your company automatically liquidates a portion of your vesting shares (often 30%-45% depending on your ordinary tax bracket) to settle your immediate payroll income tax liability with the IRS.
Are RSUs taxed when they vest?
Typically yes — vesting is ordinary income at fair market value in the U.S. Employers often withhold shares or cash for taxes.
RSU vs stock options — which is better?
RSUs have value at vest if stock > $0; options need appreciation above strike. RSUs are simpler; options offer more upside leverage.