RSU Tax Calculator

Estimate federal and state/local income taxes using your own rate assumptions, plus employee Social Security and Medicare taxes for 2025 or 2026. This tool covers standard U.S. employee RSUs delivered when they vest. It does not calculate tax on a later sale or your final tax bill.

Introduction

Use this RSU tax calculator to explore how share value, other annual wages, filing status, and your income tax assumptions affect an estimate.

Don't let the 'complexities' of RSU taxes hinder you from fully utilizing your equity compensation. This page also covers general tips for how to manage RSUs + taxes.
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The calculator is designed for employee RSUs delivered at vesting. Deferred, double-trigger, and other special arrangements need a separate review with your payroll team or tax professional.

Receiving RSUs at vesting? Estimate the taxes on their value using the form below, then review the assumptions and breakdown. Your employer's withholding and your final tax liability may differ.

RSU Tax Calculator

Estimate tax on employee RSUs delivered when they vest—not the tax on a later share sale.

A planning estimate, not a tax return. For standard U.S. employee RSUs delivered at vesting. Enter income tax rate assumptions; this tool does not look up tax brackets or state rates. Payroll withholding and your final tax bill may differ.

2026 Social Security wage cap: $184,500. Choose 2025 for a $176,100 cap.

#

Model one delivery, or same-year deliveries together using their weighted-average share value. Include other RSU wages in your other annual wages below.

$

Use the fair market value recorded by payroll when the shares are delivered at vesting.

%

Your estimated income tax rate on these RSUs. Applied to the entire RSU value; progressive brackets, deductions and credits are not calculated.

%

Enter your estimated combined state/local income tax rate on these wages, or 0 if none. State selection does not set this rate; state payroll taxes are excluded.

For context only. Multi-state income allocation is not calculated.

Used for the annual Additional Medicare Tax threshold, not to automatically select an income tax rate.

$

Your full-year wages subject to Social Security and Medicare, including bonuses and other RSUs. Exclude the RSUs modeled above and your spouse’s wages. Enter wages before the Social Security cap, not a capped W-2 Box 3 amount. Assumes the same wage base for both taxes.

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Your RSU Tax Estimate

Estimated Taxes $0 0% effective rate
Value after estimated tax $0 0% of total

Based on RSUs delivered at vesting.

Tax Breakdown

Federal income tax assumption
$0.00
State/local income tax assumption
$0.00
Social Security (6.2%, subject to cap)
$0.00
Medicare (1.45%)
$0.00
Additional Medicare (0.9%, if applicable)
$0.00

This is incremental annual tax attributed to the modeled RSUs after your other annual wages. It is not a paycheck withholding estimate, an amount due at filing, or the cash you will receive. No tax already withheld has been subtracted.

Want a professional review of your RSU strategy?

Whether you're building toward a bigger equity position or just want a sanity check, talking to someone who specializes in RSUs can help.

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Assumptions & sources

How this estimate works

The rules and assumptions behind your results.

How taxes are estimatedPayroll taxes and your income tax assumptions

Employee Social Security is 6.2% of modeled RSU wages that fit below your remaining annual wage cap.

Medicare is 1.45% of the modeled wages, plus 0.9% on the portion that raises annual wages above your filing-status threshold: $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for other statuses. Joint returns include both spouses’ Medicare wages.

Income tax equals the RSU value multiplied by each rate you enter. Rates are assumptions, not a bracket calculation.

Assumptions and limitsWhat is included, excluded, and different from withholding

The model assumes ordinary U.S. employee FICA treatment, identical Social Security and Medicare wage bases before the Social Security cap, and shares delivered when they vest.

It excludes deferred or double-trigger awards, special deferral elections, self-employment or railroad income, state payroll taxes, multi-state allocation, deductions, credits, AMT, and gains or losses from a later sale.

Explore the sources

IRS & Social Security Administration

Tax parameters checked . Only the selected 2025 or 2026 tax year is supported.

*Important Notice: this is an estimate from an online calculator and should not be considered tax advice. This content is not meant to take the place of a CPA, financial advisor, or other financial professional(s) you may need to consult in order to properly manage your RSUs. Please use your discretion when making major financial decisions such as this.‍

How do I use the RSU tax calculator?

  1. Choose the Tax Year and RSUs to Model:
    • Choose 2025 or 2026, then enter the number of RSUs delivered when they vest. This calculator estimates incremental annual tax for standard U.S. employee awards.
    • ‍Input: Enter the number of RSUs in this delivery. Include other RSU wages for the year in your other annual FICA wages.
    • Example: For a delivery of 120 RSUs, enter 120.
  2. Enter the Share Value at Delivery:
    • Use the fair market value per share recorded by payroll when the modeled RSUs are delivered at vesting.
    • Input: Enter that value in the 'Share value at delivery ($)' field. A later sale price belongs in a separate capital gains calculation.
    • Example: If each RSU is valued at $64.00, input '64.00'.
  3. Enter Your Federal Income Tax Assumption:
    • Enter an estimated income tax rate on these RSUs. The tool applies it to the whole modeled value; it does not calculate progressive brackets, deductions, or credits.
    • Input: Enter the percentage in 'Federal income tax assumption (%)'. A payroll withholding percentage is not necessarily your income tax rate.
    • Example: If your federal tax rate is 24%, input '24.00'.
  4. Enter Your State/Local Income Tax Assumption:
    • Estimate the combined state and local income tax rate on the modeled RSU wages. Enter 0 if no state or local income tax applies.
    • Input: Enter the percentage in 'State/local income tax assumption (%)'. Choosing a state does not fill in a rate. State payroll taxes and multi-state allocation are excluded.
    • Example: If your state tax rate is 5%, input '5.00'.
  5. Enter Your Other Annual FICA Wages:
    • Use your full-year wages subject to Social Security and Medicare, including bonuses and other RSUs, before the annual Social Security cap. The model assumes both taxes use the same wage base before that cap.
    • Input: Enter your own wages in 'Your other annual FICA wages ($)'. Exclude the RSUs modeled above and your spouse's wages. For a joint return, enter your spouse's annual Medicare wages in the separate field.
    • Example: If your other annual FICA wages are $100,000, enter 100000. Do not use a Social Security wage figure already capped on Form W-2.
  6. Select Your Filing Status:
    • Your filing status selects the annual Additional Medicare Tax threshold. It does not select your federal income tax rate.
    • Input: Choose your filing status. For married filing jointly, include your spouse's annual Medicare wages, or enter 0 if none.
    • Example: If you are single, select 'Single'.
  7. Calculate Your Estimate:
    • Action: Review your assumptions, then select 'Calculate estimate'.
    • Output: The results show estimated incremental taxes on the modeled RSUs and their value after those taxes. They do not show payroll withholding, capital gains, or your remaining balance due at filing.

Important Notes

Medicare Tax: The 1.45% employee Medicare tax has no wage cap. The estimate also includes 0.9% Additional Medicare Tax on the portion of these RSUs that raises annual wages above the applicable filing-status threshold.

Social Security Cap: The annual Social Security wage cap is $184,500 for 2026 and $176,100 for 2025. Only modeled RSU wages below your remaining cap are subject to the 6.2% employee tax.

Example Calculation

Example assumptions: tax year 2026, single filer, $100,000 in other annual FICA wages, and 1,000 RSUs delivered at vesting with a $50 share value. Using a 22% federal income tax assumption and 5% state/local assumption gives the illustrative result below. These are example rates, not rates determined for your circumstances.

Formula Breakdown

1) Modeled RSU Wages: Number of RSUs delivered at vesting × share value at delivery.

2) Federal Income Tax Estimate: Modeled RSU wages × the federal rate you enter.

3) State/Local Income Tax Estimate: Modeled RSU wages × the state/local rate you enter.

4) Social Security Taxes: 6.2% × the smaller of modeled RSU wages or your remaining annual wage cap. Remaining cap = the selected year's cap minus your other annual FICA wages, never below zero.

5) Medicare and Additional Medicare: Medicare = 1.45% of modeled RSU wages. Additional Medicare = 0.9% of the portion that raises annual Medicare wages above $250,000 (married filing jointly), $125,000 (married filing separately), or $200,000 (other statuses). Include a spouse's Medicare wages only for a joint return.
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Example Output

2026 example: single filer; $100,000 other annual FICA wages; 1,000 RSUs delivered at $50 each.
Federal assumption (22%): $11,000.00
State/local assumption (5%): $2,500.00
Social Security: $3,100.00
Medicare: $725.00
Additional Medicare: $0.00
Estimated incremental tax: $17,325.00
RSU value after estimated tax: $32,675.00
Illustrative assumptions only. Not payroll withholding or a final tax bill.

How are RSUs taxed?

As you probably know, Restricted Stock Units (RSUs) are a form of equity compensation granted by an employer to an employee in the form of company stock. RSUs are often used as a tool to attract and retain top talent, especially in the tech industry and with startups.

Unlike stock options, RSUs generally do not require an exercise payment. Their value depends on the stock price, award terms, and whether the conditions for delivery are met.subject to a vesting schedule, which means the employee does not receive the shares until certain conditions are met, such as continued employment for a period of time or achievement of specific performance goals.

For standard employee RSUs delivered when they vest, the fair market value of the shares is generally reported as wage income. If delivery is deferred, income tax and payroll tax timing can differ. This calculator does not model those arrangements.

For example, if an employee is granted 1,000 RSUs that vest over four years and the stock price is $50 on the vesting date, the employee would owe taxes on $12,500 of income (250 shares x $50) for that year.

It's important to note that the taxes owed on RSUs can be significant, especially if the stock price has increased substantially since the grant date. Discuss withholding and cash needs with your tax professional. An 83(b) election is not available for the grant of an RSU; RSUs and restricted stock awards are different.

2026 Planning Update: What to Do After Running the Numbers

Now that you've calculated your RSU tax impact, the next step is having the right conversations with your financial advisor. The current market environment makes these discussions more critical than ever.

Your concentration risk might matter more now. Ask your advisor how employer stock fits into your overall portfolio. This calculator estimates tax on modeled RSUs; it does not calculate concentration risk or tell you how much stock to hold.

Tax timing is important. Large vesting events this year could push you into higher tax brackets. Use your calculator results to ask your advisor: "Should I sell immediately when shares vest, or hold for long-term gains?" They should factor in your tax situation, the stock's outlook, and your overall financial goals.

Plan for the tax bill before it hits. If your calculations show a big tax liability coming, don't wait. Ask your advisor about adjusting your withholdings now or setting aside cash to cover the payment. Getting surprised by a large tax bill in April is avoidable.

Get specific about diversification. The generic advice to "diversify away from company stock" isn't enough. Your advisor should help you create a plan: How much should you sell each quarter? Where should those proceeds go? How do you balance tax efficiency with risk reduction?

One of the key questions for your advisor: "Based on these numbers, what's our specific plan for managing my equity compensation this year?" They should give you concrete steps, not just general guidance.

Connect With Your Financial Advisor

Find advisors who specialize in your unique financial situation - equity compensation, tech industry planning, and more.

Working with an Equity Compensation Specialist?

Calculators show you the numbers, but a financial advisor can help you minimize them. The challenge? Most financial advisors don't specialize in RSU planning.

Here are the specific questions to ask to separate experts from generalists before you hire.

15 Questions to Ask Your Advisor

Understanding RSU Tax Withholding

For standard RSUs delivered at vesting, employers generally arrange tax withholding. The mechanism depends on your plan. Two common methods are:

  1. Net Shares: The company retains shares to satisfy required withholding. You receive the remaining shares. The withholding amount is not necessarily your final tax liability.
  2. Sell to Cover: Shares are sold to fund required withholding. You receive the remaining shares and any residual cash, subject to the plan's procedures.
👉 read Carta's Guide on RSUs, particularly the section on “Sell to Cover”
(not sponsored - we just like their guide)

Some plans let you provide cash to cover withholding instead of using shares. This is different from a cash-settled RSU, which pays cash in place of shares. Confirm the options with your employer.

Supplemental Wage Withholding Rate

Under IRS supplemental wage rules, an employer may use the flat 22% federal income tax withholding method when the applicable conditions are met, or use an aggregate method. The portion of supplemental wages above $1 million in a calendar year is generally subject to 37% federal income tax withholding. Social Security, Medicare, and state/local withholding are separate.

Keep in mind, your actual tax liability may be higher or lower than the amount withheld, depending on your individual tax situation. You may need to make estimated tax payments or adjust your W-4 withholding to avoid underpayment penalties.

Frequently Asked Questions about RSU Taxes

Restricted Stock Units (RSUs) can be tricky to understand, especially when it comes to taxes. We've gathered the most common questions about RSUs and provided clear, concise answers to help you make informed decisions. This FAQ section offers essential information for both newcomers to RSUs and those looking to deepen their understanding.

What are RSUs and how do they differ from stock options?

A: An RSU is a promise to deliver shares or cash after specified conditions are met. RSUs generally do not require an exercise payment, but their value depends on the stock price and the award's terms.
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When do I pay taxes on my RSUs?

A: For standard RSUs delivered at vesting, the delivered value is generally wage income. A later sale may produce a capital gain or loss. Deferred or double-trigger awards can have different timing and are outside this calculator's scope.
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How accurate is this RSU tax calculator?

A: This is a simplified planning estimate. Federal and state/local rates are assumptions you enter; the tool does not calculate your tax brackets, deductions, credits, withholding, or capital gains. It assumes standard employee FICA treatment. Review your circumstances with a tax professional.
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Does the calculator account for Alternative Minimum Tax (AMT)?

A: No. This tool does not calculate Alternative Minimum Tax (AMT) or the rest of your tax return. Ask your tax professional to review AMT and any other taxes relevant to your situation.Looking for ISO AMT calculation? Click here.
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What is the difference between vesting and selling RSUs?

A: Vesting satisfies the award's conditions; settlement is when shares or cash are delivered. This calculator assumes delivery at vesting. Selling shares later is a separate transaction that may create a capital gain or loss relative to your tax basis.
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How does the "sell to cover" strategy work with RSUs?

A: "Sell to cover" is when your company sells just enough shares at vesting to cover the required tax withholding. You receive the remaining shares, allowing you to retain more equity in the company.
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Can I use this calculator for RSUs from multiple grants or vesting dates?

A: For standard deliveries in the same tax year, combine the shares using a weighted-average delivery value, or model one delivery with all other same-year RSU wages included in your other annual wages. Do not add separate estimates that each reuse the same other-wage figure: that can count the Social Security cap or Medicare threshold incorrectly.
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How do RSUs affect my overall tax bracket?

A: RSU wage income can affect your income tax bracket and other tax calculations. This tool applies the income tax rates you enter to the full modeled RSU value; it does not determine your bracket or calculate the rest of your return.
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What if my company is private? How do I determine the "Unit Value" for the calculator?

A: Ask your payroll or equity team to confirm the delivery timing and taxable value. A 409A valuation alone does not establish that an RSU is currently taxable. Private-company awards with deferred or double-trigger settlement are outside this calculator's scope.
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How often should I recalculate my RSU tax liability?

A: Recalculate when the delivery value, expected annual wages, tax year, filing status, or income tax assumptions change. For shares already delivered, use their value at delivery; a later price change belongs in a separate capital gains or loss calculation.

Planning around your own RSU grants? Browse advisors who specialize in equity compensation or advisors who focus on tax planning on AdvisorFinder.

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