What's withheld when your GOOGL RSUs vest vs. what you actually owe in California, with 2026 federal brackets.
Google employees in California usually see 22% federal withholding on every vest, whatever their salary. For someone earning $200,000, the RSU income is actually taxed federally at 24% to 32%. On a $50,000 vest, that leaves an estimated −$3,105 once state tax and payroll taxes are counted on both sides. Google calls its RSUs GSUs (Google Stock Units). The name is different, but the tax treatment is the same as any RSU: the vest-day value is ordinary wage income, and withholding follows the supplemental wage rules below.
| Base salary | $25k vest | $50k vest | $100k vest |
|---|---|---|---|
| $150,000 | −$267 | −$535 | −$3,640 |
| $200,000 | −$837 | −$3,105 | −$8,470 |
| $300,000 | −$3,017 | −$6,035 | −$12,355 |
| $500,000 | −$3,517 | −$7,035 | −$14,070 |
Withheld at vest minus actually owed. Negative means you'll owe more when you file; positive means over-withholding. Single filer, no bonus, standard deduction, vest in the second half of the year, 2026 federal brackets. The gap is the same for every company at the same vest value; only the share count differs (286 GOOGL shares ≈ $50,050 at an example price of $175).
At a $200,000 salary, extra RSU income is taxed by California at 9.3%. The higher rates only start at roughly $371,000 of taxable income (2025 thresholds; 2026 thresholds are indexed slightly higher), and the 13.3% headline rate includes a 1% surcharge that applies only above $1 million.
California requires employers to withhold 10.23% on stock compensation. That is more than the 9.3% most tech salaries actually owe, so the state side is usually slightly over-withheld. On a $50,000 vest at a $200,000 salary: California withheld $5,115, California owed $4,650 (+$465). The shortfall comes from the federal side: 22% withheld ($11,000) versus $14,570 owed (−$3,570).
California SDI (1.3% in 2026, no wage cap) is also withheld from RSU income: $650 on a $50,000 vest. It is withheld correctly, so it doesn't add to the gap, but it does reduce what you keep.
California taxes RSU income based on where you worked between grant and vest. If you move out of California before a grant finishes vesting, California can still tax the share of each vest that relates to your California workdays.