Reviewed by CalcFi Editorial · Verified against IRS Pub 525 + supplemental withholding rules (2025)
Project RSU vesting timeline, employer withholding gap vs your real bracket, and net proceeds.
Auto-updated · Verified daily against IRS, Fed & Treasury sources
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Total $ value of RSU grant at issue
Per-share price on grant date
Educational projection only — stocks vary wildly
Federal+state combined. Tech workers often 32-45%
Based on your inputs
Total gross: $237,987
Across the full vesting schedule, you keep about $161,831 after federal taxes at your 32% marginal bracket. Add state + FICA for true take-home.
22% withheld vs 32% real
Employer withholds the IRS-default 22%. At your 32% bracket, you owe an extra $23,799 at filing. Pay quarterly or boost W-4 line 4c to avoid penalty.
| Total Gross Vest Value | $237,987 |
|---|---|
| Employer Withheld (22%) | $52,357 |
| Real Federal Tax Owed | $76,156 |
| Shortfall Due at Filing | $23,799 |
| Net Proceeds | $161,831 |
Educational only. Not financial advice. Tax laws change — verify with a CPA before exercising large positions. Sources: IRS Pub 525, IRS supplemental wage withholding rules.
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The IRS treats RSU vests as supplemental wages. The default withholding rate is 22% federal — flat. This is the same rate used for bonuses. It's deliberately low so it does not over-withhold for most workers. But for tech workers earning $200k+ the marginal bracket is 32%, 35%, or 37%. The shortfall lands at filing as an unwelcome surprise.
Three options: (1) ask payroll to withhold extra via W-4 line 4c, (2) make quarterly estimated payments via IRS Form 1040-ES, or (3) sell additional shares at vest to cover the gap. Educational only — talk to a CPA before acting on large vests.
Beyond taxes, vested RSUs create employer-stock concentration. If your salary AND retirement AND vested equity are all tied to one company, a layoff cycle hits everything at once. The Equity Concentration Risk calculator shows the VaR exposure.
At vest, FMV is ordinary wage income. Employer withholds 22% federal (37% above $1M YTD supplemental). Real marginal bracket may be higher — gap owed at filing.
IRS supplemental withholding is flat 22%. If your bracket is 32%, on a $100k vest the employer withholds $22k but you owe $32k — $10k shortfall due April 15.
FMV on vest date. Holding 12+ months = long-term capital gains on appreciation; under 12 months = short-term (ordinary).
Educational only: many advisors suggest treating vested RSUs as cash bonus and diversifying — concentration risk in employer stock is significant. Consult a CPA.
Per tranche: shares × FMV at vest = ordinary wage income.
Employer withholds 22% federal (IRS supplemental rate, <$1M YTD). Real tax = your marginal bracket × gross. Shortfall = real − withheld, owed at filing.
FICA, state, Medicare, NIIT not modeled here — see your paystub for full picture. Educational only.
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.