RSU Tax & Net Value Estimator

Calculate the impact of income tax and capital gains on your Restricted Stock Units.

Vesting Details

Shares Vesting

Price at Vesting ($)

Future Sell Price ($)

Tax Withholding Rates

Federal (%)

State (%)

RSUs are taxed as ordinary income upon vesting, even if you don't sell. Most companies sell-to-cover the tax immediately.

Net Vesting Value

$9,652.5

After $5,348 tax withholding

Shares Remaining

64.35

Shares Sold for Tax

35.65

Post-Vest Growth

Capital Gain Projection

$1,608.75

Total Final Value

$11,261

Tax Form

Form 1099-B & W-2

Withholding

Sell-to-Cover Logic

Understanding RSU Taxation

Restricted Stock Units (RSUs) are a common form of equity compensation. Unlike stock options, RSUs are always worth something as long as the stock has a price, as they are a grant of actual shares.

Tax at Vesting

The moment your RSUs vest, the entire market value is treated as **Ordinary Income**. Most companies automatically sell a portion of the shares (usually 22% for Federal) to cover the tax liability. This is known as "Sell-to-Cover."

Capital Gains

Your "Cost Basis" is the market price on the day of vesting. If you hold the remaining shares and the price goes up, you will owe **Capital Gains Tax** on the profit when you eventually sell.

The 22% Supplemental Rate

The IRS typically requires companies to withhold a flat 22% for federal income tax on supplemental wages (like RSUs) up to $1 million. If your actual tax bracket is higher, you may owe more when you file your tax return.

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