RSU TAX WITHHOLDING CALCULATOR | Falcon Wealth Planning
It depends. RSUs are generally included in your taxable wages when the shares are transferred, often at vesting. Federal withholding may be calculated at 22%, but your actual marginal tax rate could be higher. This calculator estimates whether your expected withholding may leave an additional tax gap.
Enter information about your RSU vest, other income, filing status, and expected withholding.
A positive result means the calculator estimates that additional tax may remain after withholding. A negative result may indicate possible overwithholding. This is not a complete tax-return projection.
The calculator compares your estimated taxes before and after adding the RSU income.
For 2026, separately identified supplemental wages may qualify for 22% federal withholding. However, withholding is only a prepayment. Your final tax depends on your taxable income, filing status, deductions, credits, state, and other circumstances. IRS Publication 15
RSU wages may also be subject to:
The Additional Medicare Tax threshold depends on filing status, while employers generally begin withholding it after paying an individual more than $200,000 in annual wages. IRS Additional Medicare Tax guidance
The 22% federal withholding rate may be lower than the marginal rate applied to your additional income. For example, part of an RSU vest could fall within the 24%, 32%, 35%, or 37% federal bracket. However, this does not automatically mean you will owe more. Your final result also depends on deductions, credits, other withholding, estimated payments, your spouse’s income, and other household tax information.
Falcon Wealth Planning considers four connected decisions:
Taxes
Could the vest create a federal or state withholding gap?
Liquidity
How much cash should be reserved for taxes and upcoming goals?
Concentration
How much of your wealth and income depends on one company?
Investment planning
Should retained shares remain in your portfolio or be diversified?
Falcon can model these decisions within your broader financial plan and coordinate with your tax professional when tax-specific advice is required.
This calculator may not include:
California residents and former residents may also face special sourcing rules based on where services were performed during the vesting period. California FTB Publication 1004
RSUs are generally not taxable when granted. Their value is typically included in taxable wages when the shares or cash are transferred, often at vesting.
The value received is generally taxed as wage income when transferred. After that, any change between the stock’s tax basis and its eventual sale price may create a capital gain or loss.
That depends on the expected tax, your cash needs, company-stock concentration, investment goals, and confidence in retaining the shares. Selling enough to cover taxes is not automatically the same as selling enough to reduce concentration risk.
You may be able to request additional withholding through Form W-4 or make estimated tax payments. Your employer’s equity plan may limit how withholding elections can be changed.
Educational estimate only. This calculator uses simplified assumptions and does not provide individualized tax, legal, or investment advice. Actual results depend on your income, filing status, deductions, credits, state residency, employer withholding, vesting terms, and other circumstances. Consult qualified financial and tax professionals before acting.
Falcon Wealth Planning can help you estimate the tax impact, evaluate how many shares to retain or sell, and connect the vesting decision to your cash flow, investments, and long-term financial plan.
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