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How much will you owe when your RSUs vest?
RSU vesting creates ordinary income at the full fair market value on vesting day. The 22% supplemental withholding rate your employer uses is almost always less than what high earners actually owe, sometimes by tens of thousands of dollars. See your number before April finds it for you.
2026 estimates · Federal + California · Not tax advice
RSU tax impact calculator
See the gap between what’s withheld and what you actually owe.
When RSUs vest, the shares’ value is ordinary income. Employer withholding at the 22% supplemental rate often falls well short of the actual tax owed, especially for high earners in the 32–37% bracket. Enter your numbers to see your shortfall before it becomes an April surprise.
Your vesting event
Your RSU tax picture
Tax shortfall
$10,666
This is the estimated amount you’ll owe beyond what was withheld. You may need to make a quarterly estimated payment to avoid an underpayment penalty.
Shortfall exceeds $1,000 — underpayment penalty may apply
The IRS charges an underpayment penalty when you owe more than $1,000 and haven’t covered it through withholding or estimated payments. Consider making a quarterly estimated payment for the quarter in which the RSUs vested.
Use the quarterly estimate plannerIf you hold shares after vesting
The FMV on your vesting date becomes your cost basis. Any appreciation after that date is a capital gain: short-term (taxed as ordinary income) if you sell within one year, long-term (0%, 15%, or 20% rates) if you hold for more than one year. This calculator covers only the ordinary income recognized at vesting.
If your CPA and financial advisor aren’t coordinating on when to sell, how to offset gains, and how vesting events affect your estimated payments, that’s a gap that tends to cost real money.
Illustrative estimates only. Uses 2026 federal income tax brackets and standard deductions. California rate modeled at 13.3% flat on vesting income. Does not model NIIT, AMT, state deductions, itemized deductions, or tax credits. Does not constitute tax advice. See full disclaimer.
Also read
RSU Tax Treatment: What You Owe When Shares Vest
RSUs create ordinary income at vesting — not capital gain. The 22% supplemental withholding rate leaves most high earners short. Here's how the math works and what to do about it.
Read Tax planningAlternative Minimum Tax (AMT): When Business Owners and Option Holders Get Caught
The AMT is a parallel tax system with different rules. Business owners encounter it through ISO stock option exercises, depreciation preferences, and high income. The ISO AMT trap, how the AMT credit works, and why you need to model it before year-end.
Read Tax planningThe RSU & Stock Option Tax Coordination Guide
RSUs, ISOs, NQSOs, K-1s, concentrated positions — when your tax situation crosses seven documents, you need a CPA and advisor working from the same picture. Here's how to start.
ReadWork with Matt
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Matt Reese, CPA coordinates RSU vesting events, estimated payments, and post-vesting holding decisions alongside your financial advisor, so the withholding gap doesn't become a surprise.
Tax services provided through Matt Reese, CPA. This page is educational and does not constitute tax or investment advice.