BLOG

RSU Tax Calculator

RSU Tax Calculator

Calculate potential tax implications of your Restricted Stock Units (RSUs). Analyze how different tax rates, vesting schedules, and selling strategies affect your net gains.

RSU Parameters
The total number of RSUs granted to you.
The company stock price when RSUs were granted (for reference only).
The company stock price when RSUs vest (determines income tax).
The current stock price or anticipated selling price (determines capital gains).
How your RSUs vest over time.
Years
The total time period over which your RSUs vest.
Your federal income tax bracket percentage.
Your state income tax bracket percentage (0 if no state income tax).
Your annual salary (used for Social Security/Medicare calculations).
Your long-term capital gains tax rate (typically 0%, 15%, or 20%).
Your strategy for selling or holding RSU shares after vesting.
How taxes are withheld upon vesting (shares withheld or cash payment).
The percentage of RSU value withheld for taxes at vesting (typically 22% - 37%).

Welcome to the RSU Tax Calculator!

Enter your RSU details in the form on the left and click "Calculate" to see potential tax implications and net value of your Restricted Stock Units.

This calculator will help you estimate:

  • Income tax on vested RSUs
  • Impact of different vesting schedules
  • Capital gains tax implications
  • Effects of various selling strategies
  • Net gain projections
About Restricted Stock Units (RSUs)
What are Restricted Stock Units?

Restricted Stock Units (RSUs) are a form of compensation that companies grant to employees. They represent a promise to give shares of company stock to the employee upon meeting certain vesting conditions, typically time-based.

Key Tax Considerations
  • Income Tax on Vesting: RSUs are taxed as ordinary income when they vest, based on the fair market value of the shares at vesting.
  • Tax Withholding: Companies typically withhold shares to cover taxes (federal, state, Medicare, Social Security) when RSUs vest.
  • Capital Gains Tax: If you sell shares after vesting, any gain or loss from the vesting price is subject to capital gains tax.
  • Long-Term vs. Short-Term: Holding shares for more than a year after vesting may qualify for lower long-term capital gains tax rates.
Common RSU Strategies
  • Sell to Cover: Sell just enough shares to cover the tax obligation.
  • Sell All Immediately: Sell all shares at vesting to diversify investments and avoid concentration risk.
  • Hold for Long-Term: Hold shares for potential appreciation and lower capital gains tax rates.
  • Staggered Selling: Sell shares gradually over time to manage market volatility.