How many RSU shares are withheld for taxes?

It depends on the vest value and withholding rates. We divide estimated tax by share price to estimate shares sold-to-cover.

Are RSUs taxed at my marginal rate?

They are ordinary income at vest. Employers often withhold at supplemental rates (22%/37% federal) which may differ from your marginal rate.

What about AMT or NIIT?

This tool does not model AMT or Net Investment Income Tax. High earners may owe more than supplemental withholding covers.

Should I sell more shares to cover taxes?

If your marginal tax rate is higher than withholding, consider selling extra to avoid a tax bill. Consult a tax pro for specifics.

Do I owe taxes when I sell later?

Yes, future sales trigger capital gains/losses based on the vest price as your cost basis. This tool only models tax at vest.

finance calculator

RSU Tax Calculator

Estimate taxes and shares withheld at vest based on value and tax rates.

Results

Vested value: $5,000 USD
Estimated tax: $1,733 USD
Shares withheld for tax: 34.65
Net after tax: $3,268 USD

How to use this calculator

Enter shares vesting and the share price at vest.
Add federal, state, and FICA withholding percentages.
Review estimated tax, shares withheld, and net value.

Inputs explained

Shares vesting: Number of RSU shares delivered at the vest date.
Share price: Fair market value at vest; drives taxable income and withholding.
Federal withholding %: Supplemental rate applied to RSUs (often 22%/37%).
State withholding %: State supplemental rate on RSUs; varies by state.
FICA %: Social Security + Medicare withholding percentage.

How it works

Total tax = vest value × (federal + state + FICA).

Shares withheld = tax ÷ share price.

Formula

Tax = Shares × Price × (Fed% + State% + FICA%)
Shares withheld = Tax ÷ Price

When to use it

Estimating shares sold-to-cover at vest.
Planning cash needs for tax if you do not sell enough shares.
Comparing withholding to your true tax bracket to anticipate a tax bill or refund.

Tips & cautions

Sell-to-cover shares are often withheld automatically; verify with your broker.
High earners may owe additional Medicare surtax not modeled here.
If your marginal rate exceeds withholding, set aside extra cash or adjust withholdings.
Simplified; does not include AMT, NIIT, or bracket-based marginal taxes.
Assumes all shares vest and are fully taxable at the input price; ignores 83(b) or special cases.

Worked examples

100 shares at $50, 22% federal, 5% state, 7.65% FICA

Tax ≈ $1,737.50
Shares withheld ≈ 34.75
Net ≈ $3,262.50

200 shares at $80, 24% federal, 6% state, 7.65% FICA

Tax ≈ $7,728
Shares withheld ≈ 96.6
Net ≈ $8,272

Deep dive

This RSU tax calculator estimates withholding and shares sold-to-cover at vest. Enter shares, price, and withholding rates to see tax, shares withheld, and net value.

Use it to plan liquidity and avoid surprise tax bills if your true marginal rate exceeds the default supplemental withholding on RSUs.

FAQs

How many RSU shares are withheld for taxes?: It depends on the vest value and withholding rates. We divide estimated tax by share price to estimate shares sold-to-cover.
Are RSUs taxed at my marginal rate?: They are ordinary income at vest. Employers often withhold at supplemental rates (22%/37% federal) which may differ from your marginal rate.
What about AMT or NIIT?: This tool does not model AMT or Net Investment Income Tax. High earners may owe more than supplemental withholding covers.
Should I sell more shares to cover taxes?: If your marginal tax rate is higher than withholding, consider selling extra to avoid a tax bill. Consult a tax pro for specifics.
Do I owe taxes when I sell later?: Yes, future sales trigger capital gains/losses based on the vest price as your cost basis. This tool only models tax at vest.

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Not tax advice. Actual withholding varies; consult your payroll or tax advisor.