Calculate the tax on your vesting RSUs — federal, FICA, and state — and see the under-withholding gap if you're a high earner.
RSUs are taxed as ordinary income when they vest, based on the stock's fair market value at vesting. Your employer typically withholds a flat 22% federal (37% above $1M), plus Social Security, Medicare, and state tax. When you later sell, any gain or loss above the vesting price is taxed as capital gains.
If your marginal tax rate is higher than 22% (common for tech workers earning $150K+), the flat 22% supplemental withholding under-withholds — you'll owe the difference at filing. High earners should set aside extra or adjust their W-4.
No, but two events are taxed: ordinary income at vesting (on the full value), then capital gains only on the appreciation after vesting when you sell. If you sell immediately at vesting, there's no additional capital gain.
At vesting, expect roughly 22% federal + 7.65% FICA + state tax withheld — about $15,000-$20,000 on $50,000 of RSUs depending on your state, with possibly more owed at filing if your bracket exceeds 22%.
Estimates for 2026 using IRS supplemental wage rules and FICA. Withholding shown is not final tax — actual liability is settled at filing. Not tax advice.
Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.
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