2026 RSU withholding
RSU Vesting Tax Calculator
See how much tax is withheld when your restricted stock units vest — federal supplemental rate, state income tax, Social Security, and Medicare in one estimate.
Also receiving a cash bonus? Try the Bonus Tax Calculator →
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Frequently Asked Questions
How are RSUs taxed when they vest?
RSUs are taxed as ordinary income at vesting. The fair market value of the shares on the vest date is added to your W-2 wages. Employers typically withhold using the federal supplemental wage flat rate of 22% (37% on cumulative supplemental wages over $1 million in the year).
Why is 22% withheld on RSU vesting?
The IRS allows employers to withhold supplemental wages — including RSU vesting — at a flat 22% federal rate under the percentage method in Publication 15. This is withholding, not your final tax rate. If you are in a higher bracket, you may owe more when you file.
Do RSUs increase my marginal tax bracket?
Yes. RSU vesting income is added to your adjusted gross income for the year. The 22% flat withholding may be insufficient if your total income places you in the 32%, 35%, or 37% federal bracket. Plan for a potential balance due at tax time.
Which states tax RSU income?
Every state with an income tax taxes RSU vesting income at ordinary rates. California, New York, and New Jersey are among the highest-impact states for tech workers because of their top marginal rates and supplemental withholding rules.
Data Sources & Methodology
ExactTakeHome tax data is sourced from official government publications and verified against primary sources. Last verified: .
- Federal withholding: IRS Publication 15-T — Federal Income Tax Withholding Methods
- Social Security wage base: SSA 2026 Social Security Wage Base
- Medicare rates: IRS Topic No. 751 — Social Security and Medicare Withholding Rates
- State income tax: California Franchise Tax Board — 2026 California Employer's Withholding Schedules
How RSU vesting withholding works
When RSUs vest, your employer reports the fair market value as W-2 wages. Most employers withhold federal tax at the 22% supplemental flat rate (37% once cumulative supplemental wages exceed $1 million in the year). FICA taxes apply on the vest value up to the Social Security wage base.
This calculator estimates employer withholding — not your final tax liability. High earners in California, New York, or New Jersey often owe additional tax at filing time.