RSU Tax Withholding Calculator
Estimate your net value and share count after taxes for your upcoming 2026 RSU vest.
Last updated: April 2026
What is RSU Tax Withholding?
When Restricted Stock Units (RSUs) vest, they are considered supplemental income by the IRS and are taxed at ordinary income rates in the year they vest. Your employer is required to withhold taxes at the time of vesting, similar to a bonus.
Most companies use a "Sell to Cover" method, where they automatically sell a portion of the vesting shares to cover the required tax withholding. This calculator helps you estimate how many shares will be sold and what your final net value will be.
How to use this calculator
- 1Enter Number of Shares — Input the total count of RSUs that are scheduled to vest.
- 2Input FMV Price — Enter the Fair Market Value (current stock price) at the time of vest.
- 3Provide Annual Salary — This helps calculate if you've hit the Social Security wage limit ($184,500 for 2026) and if Additional Medicare Tax applies.
- 4Select your State — Choose your state to apply supplemental wage withholding rates for state income tax.
Formula & example
Net Value = (Shares × FMV) - (Fed Withholding + FICA + State Withholding)
Example: 100 shares vest at $150 each ($15,000 gross). Salary of $120k in CA.
- Gross Value: $15,000
- Federal Tax (22%): $3,300
- FICA (7.65%): $1,147.50
- State Tax (CA 10.23%): $1,534.50
- Total Withheld: $5,982.00
- Net Value: $9,018.00 (approx. 60.12 shares)
Benefits
Accurate Tax Prep
Avoid being surprised by a large tax bill or smaller-than-expected payout.
Cash Flow Planning
Know exactly how much cash value you are receiving to plan your investments.
Sell to Cover Estimates
Estimate exactly how many shares your brokerage will sell upon settlement.
Use cases
Quarterly Vesting
Use every quarter to track your total compensation and tax drag.
Budgeting
Planning a large purchase using RSU proceeds? Use this to see the real 'after-tax' amount.
Frequently asked questions
Why is 22% withheld for federal when I am in a 32% bracket?+
The IRS mandates a flat 22% withholding rate for supplemental wages under $1M. You may owe more when you file your tax return if your effective bracket is higher.
What is 'Sell to Cover'?+
It is a method where your employer sells enough shares from your vest to pay the withholding taxes, and deposits the remaining shares into your account.