RSU Tax Calculator 2026
Calculate the tax on your restricted stock units at vesting and at sale, including capital gains.
Long-term gains
Net proceeds
$67,479
from $100,000 sale value
Total tax
$32,522
Tax at vesting (ordinary income)
500 shares × $150 = $75,000 vest value
Capital gains at sale (long-term)
($200 - $150) × 500 = $25,000 gain
Estimates based on 2026 tax rates. Shows incremental tax from RSUs on top of your other W-2 income. Does not account for AMT, NIIT, state-specific RSU rules, or sell-to-cover mechanics.
How it works
RSUs are taxed in two stages: at vesting and at sale. This calculator models both.
At vesting: The fair market value of your shares is treated as ordinary W-2 income. The calculator computes the incremental tax by comparing your total income (W-2 + RSU vest value) against your W-2 income alone. This captures the marginal tax rate effect.
At sale: Any appreciation above the vest price is a capital gain. If you held the shares for 12+ months after vesting, it qualifies for long-term capital gains rates (0%, 15%, or 20%). Under 12 months is short-term and taxed at ordinary income rates.
FICA on vesting: RSU vest income is subject to Social Security tax (up to the wage cap) and Medicare tax. The calculator accounts for your other W-2 income when determining if you have already hit the Social Security cap.
FAQ
How are RSUs taxed at vesting?
The vest value (shares x price) is ordinary income. You owe federal, state, Social Security, and Medicare taxes. Your employer typically withholds by selling shares.
Should I sell RSUs immediately or hold?
Selling immediately avoids capital gains risk. Holding 12+ months qualifies for lower long-term rates if the stock rises, but you take on stock concentration risk. Many advisors recommend selling and diversifying.
What is the difference between short-term and long-term gains?
Short-term (under 12 months from vesting) is taxed as ordinary income (up to 37%). Long-term (12+ months) gets preferential rates: 0%, 15%, or 20% depending on income.
Does Section 83(b) apply to RSUs?
Generally no. 83(b) applies to restricted stock awards, not RSUs. RSUs have no value until they vest, so there is nothing to elect on. Some early-exercise RSU programs may be exceptions.
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Estimates based on 2026 tax rates. Does not include AMT, Net Investment Income Tax (NIIT), state-specific RSU rules, or sell-to-cover mechanics. Consult a tax professional for advice.