Calculate the tax impact of your RSU vesting event. See marginal federal, FICA, and state taxes on vested shares, plus capital gains if you sell.
Restricted Stock Units (RSUs) are taxed as ordinary income at the time they vest — not when they’re granted. The taxable amount equals the number of shares vesting multiplied by the fair market value per share on the vest date. This income is added to your W-2.
Because RSU income stacks on top of your regular salary, it’s taxed at your marginal rate — often higher than your average rate. This calculator shows the marginal (incremental) tax specifically on the RSU portion, not your blended rate on all income.
Most employers use “sell-to-cover” at vesting: they sell enough shares to cover the estimated tax withholding and deliver the remaining shares to you. The withholding rate (often 22% federal flat) may not match your actual marginal rate, so you may owe more (or get a refund) at tax time.
If you hold shares after vesting, your cost basis is the vest price. Any gain or loss from that point is a capital gain or loss. Shares held more than one year qualify for long-term capital gains rates (0%, 15%, or 20%), which are typically lower than ordinary income rates. This is different from ISOs, which have their own tax treatment.