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When your RSUs vest, the full market value is taxed as ordinary wages. Your employer sells some shares to cover withholding, but federal income tax is withheld at a flat 22% supplemental rate (37% on supplemental wages above $1 million). If your salary plus RSUs lands you in the 24%, 32%, 35% or 37% bracket, the difference shows up as a bill in April.
Withheld at vest: federal income tax at the 22% supplemental rate (37% on supplemental wages above $1 million in the year), your state's published supplemental or flat withholding rate, local tax where withheld (New York City at 4.25%), Social Security, Medicare, Additional Medicare above $200,000 of your own wages, and California SDI.
Actually owed: the extra federal, state and local income tax the vest adds on top of your salary, bonus and (if married filing jointly) your spouse's wages, plus Social Security up to the wage base and Medicare, with Additional Medicare at your filing status threshold ($200,000 single and head of household, $250,000 joint).
Federal brackets and standard deductions ($16,100 single, $32,200 married filing jointly, $24,150 head of household) from IRS Rev. Proc. 2025-32, with itemized deductions if you enter them. Social Security wage base $184,500. Pre-tax 401(k) and HSA contributions reduce taxable wages, including the state exceptions: Pennsylvania taxes 401(k) deferrals, and California and New Jersey tax HSA contributions.
All 50 states and Washington, D.C. use 2026 brackets for single, married filing jointly and head of household filers, with each state's standard deduction, personal exemptions and high-income phase-outs, including New York's tax-benefit recapture, Connecticut's recapture, Minnesota's deduction phase-out, Alabama's federal tax deduction and the Oregon and Missouri federal tax subtractions. Retroactive 2026 changes are included for Arkansas (3.7%), Georgia (4.99%), South Carolina (1.99%/5.21%), Utah (4.45%) and West Virginia (4.58%).
Local income taxes: New York City, Yonkers, all 23 Maryland counties and Baltimore City (including Anne Arundel's and Frederick's tiered rates), Portland Metro and Multnomah County, plus any other city or county rate you enter. See the 2026 RSU withholding gap by state report for every state side by side.
If you moved or worked in more than one state while your RSUs vested, the vest may be split between states; the multi-state RSU guide shows how to allocate it.
22% is a statutory withholding rate, not your tax rate. Once your taxable income passes $105,700 (single, 2026) your marginal federal rate is 24% or more, and every vested dollar above that is under-withheld.
Yes. Your employer withholds FICA on RSU income just like salary, so it rarely creates a shortfall. The one exception is Additional Medicare for married couples, which employers withhold above $200,000 even though the joint threshold is $250,000.
California withholds 10.23% and New York 11.70% on stock compensation. Those rates can be higher than what you owe, which partly offsets the federal gap. Enter the exact rate from your vest confirmation in the "State withheld" field for the most accurate result.
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