RSU Tax Education
RSU Tax Guides
Plain-English explanations of the tax traps that catch most RSU recipients off guard. Written against IRS source documents, updated for 2026. Use the calculator to run the numbers for your specific situation.
Why Your Company's 22% RSU Withholding Will Cost You Thousands
Your employer is legally required to withhold a flat 22% on supplemental wages. If your marginal federal rate is 32%, 35%, or 37%, you owe the gap — plus potential penalties. See a bracket table showing the exact shortfall at $150k, $200k, and $300k salaries.
The $0 Cost-Basis Trap: How to Avoid Being Taxed Twice on RSUs
When you sell vested RSUs, your broker's 1099-B often shows $0 cost basis — making it look like the entire sale is a taxable gain. It isn't, and fixing it on Form 8949 requires one line with Code B. We explain the full repair.
Sell-to-Cover Does Not Cover Your Tax Bill
Sell-to-cover remits exactly the flat 22% — the marginal gap survives. Learn how to calculate your quarterly estimated payments, apply the safe-harbor rules, and pay the IRS directly to avoid the Form 2210 penalty.
RSUs and Multi-State Taxes: Moving Out of California
California and New York have the most aggressive RSU sourcing rules in the country. Even after you leave, they can claim a portion of your income based on the workdays you spent there during the grant-to-vest window. Here's how allocation works.
Ready to run the numbers?
The calculator takes 60 seconds and shows your exact gap by tax type — federal, state, FICA, and Additional Medicare — plus the quarterly amount to send in now.
Open the RSU Tax CalculatorAlso see: California RSU Tax Calculator · Methodology · Contact