RSU Tax Estimate · 2026

Microsoft (MSFT) RSU Tax Calculator forWashingtonEmployees

What's withheld when your MSFT RSUs vest vs. what you actually owe in Washington, with 2026 federal brackets.

This page estimates the RSU withholding gap for Microsoft (MSFT) employees who live and work in Washington. The example is a single filer with a $200,000 salary and a $50,000 vest, using 2026 federal brackets. The estimated result is −$3,570. The table below shows how that changes with salary and vest size. 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.

MSFT × WA · $200,000 salary · $50,000 vest · single filer

Withheld at Vest

$12,175

22% federal, no state income tax, Medicare.

Actually Owed on the RSUs

$15,745

Extra federal tax ($14,570), Washington tax ($0) and payroll taxes the vest adds on top of your salary.

Estimated Gap

−$3,570

Federal −$3,570, state +$0. On a $10,000 vest: −$200.

Estimates for planning, not tax advice. Social Security is already capped at this salary ($184,500 wage base). Last reviewed September 21, 2026.

Open the MSFT × WA Calculator, Pre-Filled →

Estimated gap by salary and vest size in Washington

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).

What this means for Microsoft employees in Washington

Washington has no state income tax, so there is no state tax on RSU income. 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.

Washington does have a separate tax on long-term capital gains above an annual deduction. It applies to gains when you later sell shares you've held for more than a year, not to the RSU income at vest.

Washington's WA Cares long-term-care premium (0.58% of wages, no cap, unless you have an approved exemption) and Paid Family and Medical Leave premiums are also withheld from RSU income. They're withheld correctly, so they don't create a gap, but they reduce what you keep. They're not included in these estimates.

If you worked in another state during the vesting period, that state may tax the portion of the RSU income earned there, even after you moved to Washington.

Frequently asked questions

Q.Does Washington tax my Microsoft RSUs?

No. Washington has no income tax on wages, including RSU income at vest. Your gap is purely the difference between 22% federal withholding and your actual federal bracket.

Q.Will I owe Washington capital gains tax when I sell my RSU shares?

Only on long-term gains (shares held more than a year after vesting) and only above Washington's annual deduction. The gain is measured from the vest-day value, since that amount was already taxed as wages.

Q.How can I see exactly what Microsoft withheld on my vest?

Open the release or vest confirmation in your equity account: it lists the shares released, the vest-day price and the shares sold or withheld for taxes. The pay stub for that pay period breaks the withholding into federal, state, Social Security and Medicare lines. Enter those figures in the calculator to compare them with what you actually owe.