What's withheld when your MSFT RSUs vest vs. what you actually owe in Texas, 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 Texas, a $50,000 vest leaves an estimated −$3,570 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 | −$500 | −$1,000 | −$4,570 |
| $200,000 | −$1,070 | −$3,570 | −$9,400 |
| $300,000 | −$3,250 | −$6,500 | −$13,000 |
| $500,000 | −$3,250 | −$6,500 | −$13,000 |
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 (116 MSFT shares ≈ $49,880 at an example price of $430).
Texas has no state income tax, so RSU income is only taxed federally. The whole gap is federal: on a $50,000 vest at a $200,000 salary, 22% withheld ($11,000) versus $14,570 owed, a shortfall of $3,570.
The gap depends only on your federal bracket. Once taxable income passes $105,700 (single, 2026), RSU income is taxed at 24% or more, and above $201,775 at 32%.
If you moved to Texas from a state with income tax during the vesting period, that state can still tax the part of each vest that relates to the time you worked there. California is the most common example.