RSUs are taxed as ordinary income at vesting based on the fair market value (the stock price when they vest). You may owe federal, state, and FICA taxes, and any subsequent gains are capital gains.

What is the difference between RSUs and stock options?

RSUs are actual shares granted to you that vest over time. Stock options give you the right to buy shares at a set price. RSUs have value even if the stock price drops.

Should I sell RSUs immediately upon vesting?

This depends on your financial situation and company outlook. Selling immediately diversifies risk, while holding may yield additional gains (or losses).

RSU Tax Calculator

Overview

Quickly calculate the tax implications of your Restricted Stock Units (RSUs) based on income and vesting.

The RSU Tax Calculator allows you to calculate the taxes owed on your Restricted Stock Units (RSUs) when they vest. This tool helps you estimate how much tax you'll owe based on your income, vesting schedule, and current tax rates.

How to use

Calculate RSU tax implications in a few simple steps.

Enter RSU details: Input the number of RSUs vesting and the stock price at vesting.
Add income information: Enter your annual salary and total income.
Select tax jurisdiction: Choose your state or country for accurate tax calculations.
Review tax impact: Check your RSU value, estimated taxes, and net proceeds after taxes.

FAQs

How are RSUs taxed?: RSUs are taxed as ordinary income at vesting based on the fair market value (the stock price when they vest). You may owe federal, state, and FICA taxes, and any subsequent gains are capital gains.
What is the difference between RSUs and stock options?: RSUs are actual shares granted to you that vest over time. Stock options give you the right to buy shares at a set price. RSUs have value even if the stock price drops.
Should I sell RSUs immediately upon vesting?: This depends on your financial situation and company outlook. Selling immediately diversifies risk, while holding may yield additional gains (or losses).