Federal tax on RSU vesting, the 22% withholding shortfall and the gain when you sell
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 29 Sept 2026.RSUs are taxed as wages when they vest, at the share value on that day. Employers usually withhold a flat 22% federal tax, or 37% above $1 million of supplemental wages, so anyone in the 24% bracket or higher owes more at filing. Selling later taxes only the change from the vest-date price.
$400
Real tax $4,800 (24% of $20,000) against $4,400 withheldFederal only: no state or local tax, no AMT. Tax from the 2026 rate schedule. An estimate, not tax advice.
| 100 × $200 | $20,000 |
| Withheld at 22% | $4,400 |
| Tax it really adds, 24% to 24% brackets | $4,800 |
| Shortfall | $400 |
| Social security 6.2% up to the $184,500 wage base | $899 |
| Medicare 1.45%, plus 0.9% withheld on wages over $200,000 | $290 |
Rates and rules read from the sources listed on this page (the earliest on 29 Sept 2026); they may have changed since.
Pick the "Tax year" and your "Filing status"; RSUs is selected under "Equity".
Enter "Shares vesting" and the "Share price at vest".
Enter "Other taxable income this year, after deductions", other wages from this employer and "Bonuses and earlier vests this year".
Enter "Shares sold", the "Sale price per share" and how long they were "Held after the vest".
Read the amount still owed at filing or over-withheld, and the "Tax on the sale (with NIIT)", then press Share result.
Restricted stock units are taxed twice, at two different moments. This calculator follows both, for tax year 2026 or 2025, using the federal rate tables and withholding rules the IRS publishes.
At vest: wages. The number of shares times the fair market value on the vest date is ordinary income, reported on your W-2. Your employer withholds federal income tax at the flat supplemental rate: 22%, or 37% on supplemental wages above $1 million in the calendar year. The calculator then works out the tax the vest really adds on top of your other taxable income. If your bracket is 24% or higher, the gap between the two is tax you still owe in April, and the page shows it as the shortfall. Social security (6.2% up to the wage base, $184,500 for 2026) and Medicare (1.45%, plus 0.9% withheld above $200,000 of wages) are shown too.
At sale: capital gain. Your cost basis is the vest-date value, because that amount was already taxed as wages. Selling above it is a gain; below it is a loss. Held more than one year, the gain is long-term and taxed at 0%, 15% or 20% depending on where it lands on top of your income. Held a year or less, it is taxed like wages. The 3.8% net investment income tax is estimated above $200,000 of MAGI ($250,000 joint).
Stock options. Choose NSO to tax the spread at exercise instead of the full share value. Incentive stock options (ISOs) are not modelled: they create no regular tax at exercise but can trigger alternative minimum tax, which depends on your whole return.
What it does not do. No state or local income tax, no AMT, and tax is figured from the rate schedule rather than the Tax Table. Check the basis on your Form 1099-B: brokers often report it as zero for RSU shares. An estimate, not tax advice.
The shares that vest, times their market value on the vest date, are ordinary wages. They appear on your W-2 and are taxed at your normal federal bracket, plus social security and Medicare. Employers usually sell or hold back some shares to cover the withholding, which is typically a flat 22% federal rate.
Federal withholding on supplemental wages is a flat 22% up to $1 million a year, per Publication 15. If your other income puts the vest in the 24%, 32% or 35% bracket, 22% is not enough, and the difference is due with your return. The calculator shows that shortfall in dollars.
The basis is the market value on the vest date, the amount already taxed as wages. When you sell, only the price change since the vest is a capital gain or loss. Brokers often report the basis on Form 1099-B as zero, so adjust it on Form 8949 or you pay tax twice.
Only the growth after vesting can be. Shares held more than one year after the vest give a long-term gain taxed at 0%, 15% or 20%. For 2026 the 15% rate starts at $49,450 of taxable income for single filers and $98,900 for joint filers. Selling within a year taxes the gain as ordinary income.
Employers must withhold 37% on the part of an employee's supplemental wages above $1 million in the calendar year. Supplemental wages include bonuses, commissions and RSU vests. Enter what was already paid this year and the calculator splits the vest between the 22% and 37% rates.
No. Exercising an incentive stock option creates no regular income tax, but the spread counts for the alternative minimum tax, which depends on the whole return. The calculator covers RSUs and non-qualified options, where the value is ordinary wages. Use tax software or an adviser for ISO and AMT planning.
Rates and rules change; check the source before you rely on a figure.
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