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2026 RSU Tax Withholding Calculator

Estimate the income tax due when your restricted stock units vest - and see whether your employer's default withholding leaves you covered or short.

If you receive Restricted Stock Units (RSUs) as part of your compensation, the tax side can be hard to predict. Most companies withhold federal income tax on vesting RSUs at a flat 22% - the IRS default rate for supplemental wages. But your actual RSU tax rate is set by your marginal tax bracket, which in 2026 can run as high as 37%. If your total income puts you in the 24% bracket or above, the default withholding is likely too low, and the shortfall can surface as an unexpected bill on your tax return.

Use this RSU calculator to estimate the federal income tax impact of RSUs vesting in any given year. It gives you an early read on whether to increase your withholding or set extra cash aside before the filing deadline.

Keep in mind: this calculator covers federal income tax on vesting RSUs only. Capital gains taxes on shares you sell later are separate and are not contemplated here.

RSU Tax Withholding Calculator

Estimate the income tax on your vesting RSUs and see whether your employer is withholding enough.

Enter your details, then select Calculate My Withholding to see your estimated tax and any likely shortfall.
RSU Tax Guide

How Taxes on RSUs Work in 2026

A short guide to what happens when your shares vest, what gets withheld, and where the surprises come from.

RSUs Become Taxable Income When They Vest

Restricted stock units are taxed at vesting, not at grant. On each vesting date, the market value of the shares that vest is added to your W-2 wages as ordinary taxable income - the same as a cash bonus. If 500 shares vest at $200 per share, that is $100,000 of additional income for the year, whether or not you sell a single share.

Because RSU income stacks on top of your salary, a meaningful vest can push you into a higher tax bracket. That interaction between salary and equity is what most people underestimate.

Why the Default 22% Withholding Falls Short

The IRS treats RSU income as supplemental wages, and most employers withhold federal income tax at the flat supplemental rate: 22% on the first $1 million of supplemental wages in a year, and 37% above that. Employers typically cover this by selling a portion of your vesting shares, so the taxes withheld appear on your pay stub automatically.

The problem is that 22% is a withholding rate, not your tax rate. For 2026, federal tax rates range from 10% to 37%, and the 24% bracket begins at $105,701 of taxable income for single filers ($211,401 for married filing jointly). A single filer with $400,000 of combined salary and RSU income sits in the 35% bracket - so every dollar of RSU income withheld at 22% leaves a 13-point gap the IRS still expects to collect.

Payroll and State Taxes on Vesting RSUs

Federal income tax is not the only line item. Vesting RSUs are also subject to Social Security tax (6.2% up to the 2026 wage base of $184,500), Medicare tax (1.45%, plus an additional 0.9% on wages above $200,000), and state income tax where applicable. High earners in states like California or New York can see combined marginal rates on RSU income well above 45%.

This restricted stock calculator focuses on federal income tax, so if you live in a state with an income tax, plan for that layer separately.

Selling After Vesting: Cost Basis and Capital Gains

Once shares vest, your cost basis is the market value on the vesting date - the same amount that was already taxed as income. When you eventually sell, only the change in price after vesting is a capital gain or loss. Sell within one year of vesting and any gain is a short term capital gain, taxed at ordinary rates; hold longer than a year and it qualifies for long term capital gains rates, which top out at 20% (plus the 3.8% net investment income tax for higher earners).

One consequence worth knowing: selling immediately at vest typically creates little or no additional tax, because the shares have had no time to appreciate beyond their basis.

How to Use This Calculator

Enter your expected salary, filing status, and the value of RSUs vesting this year. The calculator estimates your total federal income tax and compares it with what your employer is likely to withhold, so you can see any gap before it becomes a filing-season surprise.

If the gap is meaningful, you generally have three options: ask your employer whether you can raise the withholding rate on equity compensation, make quarterly estimated payments, or increase the withholding on your regular salary through your W-4. A tax professional can help you choose based on your prior tax returns and this year's numbers - and if your equity picture is complex, that conversation is worth having early in the year, not in April.

FAQ

Frequently Asked Questions

Common questions about RSU taxes, withholding, and what to do about a shortfall.

What is the RSU tax rate in 2026?

There is no special RSU tax rate. RSU income is ordinary income, taxed at the same 2026 federal rates as your salary - 10% to 37% depending on your total taxable income. The 22% you see withheld at vesting is the IRS supplemental withholding rate, not the rate you ultimately owe.

How much tax is withheld when RSUs vest?

Most employers handle tax withholding on restricted stock units by selling a portion of the vesting shares: 22% for federal income tax on the first $1 million of supplemental wages each year, and 37% above that. Social Security, Medicare, and state withholding apply on top. Whether that is enough depends on your marginal tax bracket.

Are RSUs taxed twice?

No. The value at vesting is taxed once as ordinary income, and it becomes your cost basis. When you sell, only appreciation above that basis is taxed again - as a capital gain. Apparent double taxation usually traces back to a misreported cost basis on a tax return, which is worth double-checking against your broker's supplemental statement.

Can I increase my RSU withholding?

Some employers let you elect a higher withholding rate on equity compensation; many do not. If yours does not, the practical alternatives are making quarterly estimated tax payments or increasing the federal withholding on your salary through your W-4.

What happens if too little was withheld?

You pay the difference when you file, and you may owe an underpayment penalty on top. The IRS safe harbor generally protects you from penalties if your withholding and estimated payments cover at least 110% of last year's tax (for higher earners). If a large vest is coming, running the numbers mid-year gives you time to adjust.

This calculator and guide are for educational purposes only and are not tax, legal, or investment advice. Estimates cover federal income tax only and do not account for every variable in your situation. Tax rates and thresholds reflect 2026 law, which can change. Consult your own tax professional before acting on any estimate.

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