Does this show my final RSU tax bill?

No. It estimates withholding at vest. Your actual tax owed is calculated on your full return and can be higher or lower than this simple estimate.

Why might my employer’s share withholding differ from this estimate?

Your employer may round to whole shares, use different supplemental rates, or handle some withholding in cash. They also adjust for year-to-date wages and payroll rules.

How should I pick the withholding percentages?

Start with the rates listed in your RSU documentation or on prior vesting pay stubs. If you don’t have those, approximate using IRS supplemental federal rates and your state’s supplemental rate.

Does this apply to stock options or ESPP too?

No. This calculator is built for RSUs that are taxed as ordinary income at vest. Other equity types often have different tax timing and rules.

Can I use this instead of talking to a tax advisor?

You shouldn’t. Use it as a planning tool and bring the results to a tax professional if your RSU income is significant or your situation is complex.

finance calculator

RSU Tax Calculator

Estimate taxes and shares withheld at vest based on value and tax rates.

Results

Vested value: $5,000 USD
Estimated tax: $1,733 USD
Shares withheld for tax: 34.65
Net after tax: $3,268 USD

Overview

Restricted stock units (RSUs) can be a major part of your compensation—but when they vest, they also create taxable income and often an automatic sell-to-cover for taxes. This RSU tax calculator helps you estimate the vest value, combined tax withheld, how many shares might be used to cover that tax, and the net value you keep.

Instead of being surprised by how small a vesting event feels after withholding, you can plug in your grant size, an estimated share price, and your employer’s withholding percentages to see the breakdown ahead of time. That makes it easier to plan when to sell, set aside extra cash if your real marginal tax rate is higher than the flat supplemental rate, or map vesting events into your broader savings and diversification plan.

How to use this calculator

Enter the number of RSU shares that will vest on your chosen date.
Enter the expected share price at vest (often the current or estimated market price).
Enter your employer’s federal, state, and FICA withholding percentages (or your best estimates).
Review the estimated vest value, total tax withheld, shares withheld, and net after-tax value.
Adjust the share price and withholding rates to see how different scenarios affect your net outcome.

Inputs explained

Shares vesting: The number of RSU shares that become yours at the vest date according to your grant’s vesting schedule.
Share price: The fair market value per share at vest. Employers typically use this price to calculate taxable income from RSUs.
Federal withholding %: The federal income tax percentage your employer withholds on RSU income. Many U.S. employers use the IRS supplemental rate (for example, 22% or 37%, depending on income).
State withholding %: The state income tax percentage withheld on RSU income, if your state taxes wages. Enter 0 if you live in a state with no income tax.
FICA %: The combined Social Security and Medicare rate your employer applies to RSU income. The default approximates the standard employee rate; your situation may differ if you have already exceeded the Social Security wage base.

How it works

You enter how many RSU shares are vesting, the fair market value per share at vest, and the withholding percentages your employer uses for federal income tax, state income tax, and FICA (Social Security + Medicare).

The calculator multiplies shares by share price to get vest value: Vest value = Shares × Share price.

It then applies your combined withholding percentage to that value to estimate tax: Total tax = Vest value × (Federal% + State% + FICA%).

To approximate how many shares are used in a sell-to-cover or share-withholding transaction, the tool divides total tax by share price: Shares withheld = Total tax ÷ Share price.

Finally, net after-tax value is computed as Net value = Vest value − Total tax. This ignores future price changes and the fact that your final tax bill may differ from withholding.

Formula

Vest value = Shares × Share price\nTotal tax = Vest value × (Federal% + State% + FICA%)\nShares withheld = Total tax ÷ Share price\nNet value = Vest value − Total tax

When to use it

Estimating how many RSU shares will be withheld or sold to cover taxes at vest and how many you will actually keep.
Planning whether to sell additional shares to avoid an under-withholding surprise if your true marginal tax rate is higher than the combined withholding rates.
Comparing vest events at different stock prices to see how a higher or lower share price affects tax and net value.
Explaining RSU vesting to a partner or colleague by walking through the math of income, withholding, and net shares.
Stacking multiple vesting events in a spreadsheet using this calculator’s outputs so you can see how total RSU income and withholding affect your annual tax picture.

Tips & cautions

Check your equity plan and recent pay stubs to confirm the actual withholding percentages your employer uses; they may differ from the defaults.
If you are a high earner, remember that additional Medicare surtax or Net Investment Income Tax may apply—use a slightly higher combined rate if you want a conservative estimate.
Because RSUs are taxed when they vest, selling immediately does not avoid income tax but can help you avoid concentrated risk in your employer’s stock.
Consider working with a tax professional to understand how RSUs interact with your broader tax situation, especially if vest amounts are large.
The calculator uses a flat combined withholding rate and does not compute your full tax return, marginal brackets, AMT, or NIIT.
It assumes all RSUs vest and are fully taxable at the provided price, and does not model special situations such as 83(b) elections, double-trigger vesting, or non-U.S. tax rules.
The number of shares withheld is estimated and may differ from your broker’s actual share count due to rounding, minimum-lot rules, or the use of cash withholding in place of shares.
Future stock price changes, subsequent sales, and related capital gains or losses are not included.

Worked examples

100 shares at $50, 22% federal, 5% state, 7.65% FICA

Vest value = 100 × $50 = $5,000.
Combined rate = 22% + 5% + 7.65% = 34.65%.
Estimated tax = $5,000 × 0.3465 ≈ $1,732.50.
Shares withheld ≈ $1,732.50 ÷ $50 ≈ 34.65 shares.
Net after tax ≈ $5,000 − $1,732.50 ≈ $3,267.50.

200 shares at $80, 24% federal, 6% state, 7.65% FICA

Vest value = 200 × $80 = $16,000.
Combined rate = 24% + 6% + 7.65% = 37.65%.
Estimated tax = $16,000 × 0.3765 ≈ $6,024.
Shares withheld ≈ $6,024 ÷ $80 ≈ 75.3 shares.
Net after tax ≈ $16,000 − $6,024 ≈ $9,976.

Deep dive

Use this RSU tax calculator to estimate how much tax will be withheld when your restricted stock units vest. Enter vesting shares, share price, and withholding percentages to see vest value, estimated tax, shares withheld for tax, and net after-tax value.

It’s a practical tool for understanding how RSU vesting affects your pay and planning how much stock to hold or sell without being caught off guard by taxes.

Pair these estimates with your actual pay stubs and equity statements so you can refine the withholding assumptions over time and avoid surprises at tax filing, especially if RSUs represent a large share of your total compensation.

FAQs

Does this show my final RSU tax bill?: No. It estimates withholding at vest. Your actual tax owed is calculated on your full return and can be higher or lower than this simple estimate.
Why might my employer’s share withholding differ from this estimate?: Your employer may round to whole shares, use different supplemental rates, or handle some withholding in cash. They also adjust for year-to-date wages and payroll rules.
How should I pick the withholding percentages?: Start with the rates listed in your RSU documentation or on prior vesting pay stubs. If you don’t have those, approximate using IRS supplemental federal rates and your state’s supplemental rate.
Does this apply to stock options or ESPP too?: No. This calculator is built for RSUs that are taxed as ordinary income at vest. Other equity types often have different tax timing and rules.
Can I use this instead of talking to a tax advisor?: You shouldn’t. Use it as a planning tool and bring the results to a tax professional if your RSU income is significant or your situation is complex.

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This RSU tax calculator provides simplified estimates of RSU income and withholding based on user-entered assumptions. It does not replace official payroll calculations or professional tax advice. Always check your actual pay stubs, plan documents, and tax forms, and consult a tax professional for decisions involving equity compensation and taxes.