Enter your vesting shares and stock price to see your gross value, estimated tax withheld, net shares after sell-to-cover — and whether the standard 22% federal withholding will leave you short at tax time. US-focused. Runs entirely in your browser.
Drag the sliders or type exact numbers — results update instantly. Use your marginal (top bracket) rates for the most honest estimate.
Shares vesting in this event (check your grant schedule in E*TRADE, Schwab, Fidelity, etc.).
Fair market value per share on the vest date. Gross income = shares × price.
Employers usually withhold at 22%. If your bracket is higher, pick it here — the shortfall warning below shows the gap.
Typical marginal rates. NYC residents: add city tax to the NY rate. Adjust freely.
Sell-to-cover: enough shares are sold automatically at vest to pay the tax. You keep the rest — no cash needed.
At vest, the IRS treats your shares like a cash paycheck: the whole amount (shares × price) is ordinary wage income for that year and lands on your W-2. Your employer must withhold tax before you see the shares — most sell just enough shares at vest to cover it.
The 22% trap: federal withholding on RSUs uses the flat 22% supplemental rate by default. That rate is too low for anyone whose marginal bracket is 24% or above — which covers many tech workers once salary + RSUs stack up. The gap is not a penalty; it is simply tax still owed, due when you file (or via estimated payments). This calculator compares the 22% statutory withholding against tax at your chosen rate to estimate that gap.
After vesting: the vest-date value is your cost basis. Hold the shares and any later gain or loss is capital — short-term within a year, long-term after. Sell immediately at vest and there is usually little or no additional gain to tax. FICA (Social Security / Medicare) can also apply at vest depending on your year-to-date wages; this estimate covers income tax only.
When RSUs vest, the full market value of the shares (shares × price at vest) is treated as ordinary wage income in that year. Your employer withholds federal and state income tax, typically by selling or withholding enough shares to cover the tax (sell-to-cover / share withholding). The income shows up on your W-2.
Most employers withhold federal tax on RSU vesting at the flat 22% supplemental-wage rate. If your actual federal marginal bracket is higher than 22% — common for tech workers in the 24%, 32%, 35%, or 37% brackets — the withholding falls short and you owe the difference when you file. This calculator estimates that shortfall.
With sell-to-cover, your employer automatically sells enough vesting shares to pay the withholding tax, and you keep the remaining shares. If you elect to hold all shares instead, you must cover the same tax bill in cash (often via extra payroll withholding or estimated payments), but you keep every share.
At vesting you pay ordinary income tax on the full value, and that value becomes your cost basis. If you hold the shares afterward, only the change in price after vesting is a capital gain or loss when you sell — short-term if held one year or less, long-term if held longer.
States with no broad wage income tax include Texas and Washington, so RSU vesting there has no state income tax (federal tax still applies). California taxes RSU income at rates up to 9.3% and higher at top brackets, and New York State around 6.85%, plus possible New York City tax. Use your own marginal rate for the best estimate.