Restricted stock units are generally taxed as wage income when they vest. Enter your annual salary excluding the vest, RSU value, state, and filing status to estimate the additional tax associated with the vest. This is a planning estimate, not a payroll-withholding quote.
Assumes the salary shown is your annual wage income excluding this RSU vest. For year-to-date payroll withholding, use your pay stub and employer withholding details.
Simplified: taxes the vest as ordinary income using 2026 federal brackets (IRS Rev. Proc. 2025-32) + simplified state formulas. Employers usually withhold a flat 22% federal on supplemental wages.
How RSUs are taxed
Restricted stock units are taxed as ordinary income when they vest — not when granted. Your employer withholds taxes at vesting, usually at the flat 22% federal supplemental-wage rate (37% on amounts above $1 million), plus state withholding and FICA. Your actual tax bill depends on your total income and bracket, which is what this calculator estimates.
RSU withholding vs. actual tax
The 22% withheld is just a down payment. If your marginal rate is 32%, you will owe more at tax time; if it is 12%, you may get a refund. Many employees sell a portion of vested shares immediately (“sell to cover”) to handle the bill.
FAQs
How are RSUs taxed in 2026?
As ordinary income at vesting, based on the shares’ fair market value that day. Federal tax uses your marginal bracket; employers typically withhold a flat 22% federal (supplemental wage rate) plus state and FICA.
What is the 22% RSU withholding rule?
Employers withhold 22% federal income tax on supplemental wages (including RSU vests) up to $1 million, and 37% above that. It is withholding, not your final rate — the actual tax follows your bracket.
Do I pay state tax on RSUs?
Yes, in states with income tax. Nine states (including Texas, Florida, and Washington) have no income tax, so only federal + FICA apply there.
Are RSUs taxed twice?
No — but it feels that way. You are taxed at vest on the full value, and later only on gains above the vest price when you sell (capital gains). Keep your vest confirmations for cost-basis records.
Related: US Paycheck Calculator 2026 · Bonus Tax Calculator · All Paybox tools