RSU tax calculator for the withholding gap
Estimate tax when restricted stock units (RSUs) are delivered. Compare federal withholding with the tax implied by your selected rates, then check any gap.
The full value of the vested shares is ordinary income, added to your W-2 that year.
42.4% of the vesting (federal, Medicare, and state)
What's left after estimated tax
Sold at the vesting price to pay the estimated bill
Mind the withholding gap
Employers withhold federal tax on RSUs at a flat 22%, but your 35% bracket owes more. That leaves an estimated $6,500 in federal tax you may still owe at filing, before state tax. Setting that aside now avoids an April surprise.
Estimates only, not tax advice. Assumes RSU income stacks on salary at your chosen marginal rate, that salary already clears the Social Security and Additional Medicare thresholds, and a flat state rate. Your actual tax depends on your full return.
What to decide after you run the numbers
Use the result to check payroll records and plan any additional tax payment.
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Check the taxable date
Use the share-delivery or settlement date and value, which may differ from the vesting date for deferred awards.
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Read the pay statement
Compare actual federal withholding with the estimate. Net share withholding and a broker’s sell-to-cover transaction are different mechanisms.
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Keep the basis records
Save the compensation value and share count. The same amount generally enters your cost basis so it is not taxed again as capital gain.
Withholding is a payment toward tax
RSUs have no special federal income-tax rate. Their taxable compensation adds to ordinary income. This tool uses one selected federal rate for the whole award; a full projection may split it across brackets.
Check the cash needed for any shortfall alongside concentration in employer stock. More withholding, estimated payments and share sales can have different timing and restrictions.
Sources: IRS Publication 15 for withholding and Publication 525 for compensation.