Estimate federal, state and FICA taxes on your RSU vest — and see the withholding gap that surprises tech workers every April.
RSUs are taxed as ordinary income when they vest. Your company withholds only 22% flat, but your actual marginal rate may be 24–37%. This calculator estimates your total 2026 tax on any vest amount, including state income tax and FICA — and shows you the exact gap between what's withheld and what you'll owe.
Pre-computed examples for a $50,000 RSU vest in California (9.3% state rate), single filer, standard deduction. Federal uses the 2026 marginal method. FICA includes Social Security and Medicare.
| Base Salary | Federal Tax on Vest | CA State Tax | FICA | Total Tax | 22% Withheld | Gap (you may owe) |
|---|---|---|---|---|---|---|
| $80,000 | $11,164 | $4,650 | $3,825 | $19,639 | $11,000 | $8,639 |
| $150,000 | $12,000 | $4,650 | $2,864 | $19,514 | $11,000 | $8,514 |
| $250,000 | $16,830 | $4,650 | $1,175 | $22,655 | $11,000 | $11,655 |
Note: Federal calculated using IRS 2026 brackets (marginal method). CA state at 9.3%. FICA includes Social Security (6.2% up to remaining wage base) and Medicare (1.45% + 0.9% AAMIT where applicable). Estimates only — use the calculator above for your specific situation.
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Manage Global Equity Compensation with Deel →When your RSUs vest, your employer is legally required to withhold federal income tax at the IRS supplemental wage rate — currently 22% flat for amounts under $1 million. This rate is set by statute and appears in IRS Publication 15 (Circular E). It applies regardless of your actual tax bracket.
The problem: 22% is the rate for the 22% bracket, which applies to single filers earning $50,400–$105,700 in taxable income in 2026. If you earn a $150,000 salary and receive a $75,000 RSU vest, every dollar of that vest is taxed at 24% federally (the 24% bracket applies from $105,700 to $201,775). Your employer withholds $16,500 (22%). You may actually owe approximately $18,000. The $1,500 gap becomes a bill when you file.
If this calculator shows a gap greater than $1,000, consider taking one of these steps to avoid an IRS underpayment penalty:
None of the above is tax advice. Tax situations vary significantly based on individual circumstances. Consult a qualified CPA or enrolled agent before making decisions about estimated tax payments or W-4 adjustments.
CountryTaxCalc Research Team analysis. Assumes a $50,000 RSU vest with a $150,000 base salary, single filer. Federal tax on the vest + FICA = $14,864 (constant for all states — see methodology below). State tax is additive.
| State | State Rate | State Tax on $50K | Est. Total Tax | Net RSU Value |
|---|---|---|---|---|
| Hawaii | 11.0% | $5,500 | $20,364 | $29,636 |
| New York | 10.9% | $5,450 | $20,314 | $29,686 |
| New Jersey | 10.75% | $5,375 | $20,239 | $29,761 |
| Washington D.C. | 10.75% | $5,375 | $20,239 | $29,761 |
| Oregon | 9.9% | $4,950 | $19,814 | $30,186 |
| Minnesota | 9.85% | $4,925 | $19,789 | $30,211 |
| California | 9.3% | $4,650 | $19,514 | $30,486 |
| Vermont | 8.75% | $4,375 | $19,239 | $30,761 |
| Massachusetts | 5.0% | $2,500 | $17,364 | $32,636 |
| Texas / Florida / Nevada | 0% | $0 | $14,864 | $35,136 |
Notes: New York state rate only — NYC residents add up to 3.876% local tax. Federal + FICA constant of $14,864 assumes: $12,000 federal (24% bracket, marginal method on $50K at $150K salary) + $2,864 FICA (SS on remaining $34,500 of the $184,500 wage base = $2,139, Medicare on $50K = $725). All figures are estimates. Source: CountryTaxCalc Research Team, IRS Publication 15, individual state revenue department rate schedules.
The calculator uses the marginal subtraction method to isolate the federal tax attributable to the RSU vest: it calculates federal tax on (salary + RSU) and subtracts federal tax on (salary alone). This gives the precise marginal federal tax on the vest — the same method the IRS expects you to use when computing estimated payments. Standard deduction is applied: $16,100 single / $32,200 MFJ (2026 figures — per IRS Revenue Procedure 2025-32).
State tax is calculated as RSU value × top marginal state rate. This is exact for flat-rate states (IL, CO, PA, MI, UT, IN, KY, MA, AZ). For progressive states, it is accurate for earners whose salary alone already exceeds the top bracket threshold — which is the case for most tech workers using this calculator. The methodology note displayed under results flags this for lower-income filers.
Social Security tax (6.2%) applies only up to the $184,500 wage base in 2026. The calculator deducts your salary from the wage base first. If your salary has already exceeded $184,500, no Social Security tax applies to the RSU. If your salary partially covers the wage base, only the remaining room is taxed.
The base Medicare rate (1.45%) applies to all wages. The Additional Medicare Tax (AAMIT, 0.9%) applies above $200,000 for single filers and $250,000 for MFJ — using the same marginal subtraction method as federal income tax to avoid double-counting with the salary amount already subject to it.
Company withholding is estimated at 22% flat for RSU vests under $1,000,000, or 37% for vests of $1,000,000 or more — per IRS Publication 15. Actual employer withholding may vary if your payroll uses the aggregate method (uncommon for RSU supplemental wages) or if you have adjusted your W-4.
RSUs are taxed as ordinary income at the moment they vest. The fair market value on the vest date is added to your W-2 and taxed at your marginal federal and state income tax rates, plus Social Security (up to $184,500 in 2026) and Medicare (1.45% always, plus 0.9% Additional Medicare Tax above $200,000 single / $250,000 MFJ).
Companies withhold at the IRS flat supplemental wage rate of 22%. But if your salary alone already puts you in the 24%, 32%, or 37% bracket, every RSU dollar is taxed at that higher rate — not 22%. The difference becomes a tax bill when you file in April. This calculator shows you that gap before it surprises you.
Per IRS Publication 15, employers must withhold federal income tax from supplemental wages (which includes RSU vests) at a flat 22% for amounts under $1 million. This rate is set legislatively and does not reflect your actual marginal bracket. If your combined income exceeds $105,700 (single, 2026), you are likely under-withheld on every vest.
Yes. RSU vest income is subject to Social Security (6.2%) up to the $184,500 wage base in 2026. If your salary has already reached this limit before the vest date, you owe no Social Security on the RSU. Medicare (1.45%) applies to all wages with no cap, plus an additional 0.9% (Additional Medicare Tax) above $200,000 single / $250,000 MFJ.
RSUs are taxed as ordinary income in almost all states with an income tax. This calculator uses the top marginal state rate, which is accurate for flat-rate states and for earners whose income already exceeds the top bracket. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — have no income tax on wages.
You cannot defer ordinary income tax on standard RSU vests. However, legitimate strategies include: maximising 401k or HSA contributions in the vest year to reduce taxable income, donating vested shares to a Donor-Advised Fund (avoiding capital gains on subsequent sale), or timing a vest event to fall in a lower-income year. Always consult a CPA before acting on any tax strategy.
The Additional Medicare Tax (0.9%) applies to wages above $200,000 for single filers or $250,000 for married filing jointly. Because RSUs vest as ordinary wage income, if your salary plus RSU vest crosses these thresholds, the excess is subject to the extra 0.9%. Employers only withhold this automatically when a single employee's wages exceed $200,000 — married filers often owe it at filing.
US citizens and Green Card holders must file US taxes regardless of where they work, and RSU vests are still treated as ordinary income on your US return. If you pay income tax in a foreign country on the same vest, you may be able to claim a Foreign Tax Credit to offset double taxation. The rules are complex — Greenback Expat Tax Services and TFX both specialise in this area.
Yes. RSUs are always taxed as ordinary income at vest — there is no choice. Non-Qualified Stock Options (NSOs) are taxed as ordinary income when exercised. Incentive Stock Options (ISOs) may qualify for long-term capital gains treatment if specific holding periods are met, but they can trigger the Alternative Minimum Tax. RSUs are simpler but offer less tax-planning flexibility than ISOs.
Make an estimated tax payment if the calculator shows a gap greater than $1,000 — the IRS assesses an underpayment penalty at that threshold. Estimated payments are due quarterly: April 15, June 15, September 15, and January 15. Alternatively, you can increase your W-4 withholding for the remainder of the year after a vest event to cover the shortfall without a separate payment.
This calculator and all content on this page is provided for educational and informational purposes only. It is not tax advice. All figures are estimates based on published 2026 IRS rates and state revenue department schedules — actual tax liability depends on your individual circumstances, deductions, credits, and other income sources.
Tax law changes frequently. Rates and thresholds on this page are based on information available as of April 2026. Verify current figures with the IRS (Publication 15) and your state's revenue department before making financial decisions.
Always consult a qualified CPA, enrolled agent, or tax attorney before making estimated tax payments, adjusting withholding, or implementing any tax strategy related to equity compensation. If you are a US citizen or Green Card holder living abroad, specialist expat tax advice is strongly recommended.
Authored by: CountryTaxCalc Research Team | Last Updated: April 2026 | Primary source: IRS Publication 15 (Circular E)