What's withheld when your MSFT RSUs vest vs. what you actually owe in New York, with 2026 federal brackets.
When Microsoft Corporation RSUs vest, the vest-day value is taxed as wages. Your employer withholds federal tax at a flat 22%, plus Medicare, Social Security and any state tax. Whether that is enough depends on your bracket. For a single filer earning $200,000 in New York, a $50,000 vest leaves an estimated −$2,339 gap between what was withheld and what you'll owe. Microsoft is headquartered in Washington, which has no state income tax, but many employees live and work elsewhere. The state where you performed the work while the RSUs vested decides which state taxes them.
| Base salary | $25k vest | $50k vest | $100k vest |
|---|---|---|---|
| $150,000 | +$863 | +$1,813 | −$526 |
| $200,000 | −$28 | −$2,339 | −$6,374 |
| $300,000 | −$2,037 | −$4,075 | −$8,150 |
| $500,000 | −$2,037 | −$4,075 | −$8,150 |
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, New York single-filer brackets with recapture. The gap is the same for every company at the same vest value; only the share count differs (116 MSFT shares ≈ $49,880 at an example price of $430).
New York cut its middle brackets by 0.1 percentage points for 2026. For a single filer, taxable income between $80,650 and $215,400 is taxed at 5.9% and income from $215,400 to about $1.08 million at 6.85%.
New York also has a tax-benefit recapture above $107,650 of income: as income rises, the benefit of the lower brackets is taken back, so the whole income ends up taxed at your top bracket rate. In the phase-in ranges this pushes the real marginal rate on RSU income well above the bracket rate. The calculator models this for single filers.
Employers may withhold New York tax on supplemental wages at a flat 11.70% (they can also use the aggregate method). At typical tech salaries, 11.70% is more than New York actually charges, so the state side is often over-withheld. On a $50,000 vest at a $200,000 salary: New York withheld $5,850, New York owed $4,619 (+$1,231). The federal side is short by $3,570, so the net gap is −$2,339.
New York City residents also owe city income tax (3.078%–3.876%), and employers can withhold it at a 4.25% supplemental rate. City tax is not included in these estimates.