Texas RSU Vesting Tax Calculator

The fair market value of your shares on the vesting date is added to your W-2 as ordinary wage income. Texas has no state income tax, so only the federal rate and FICA apply, on top of the federal 22% (37% above $1,000,000) supplemental withholding rate and standard FICA taxes.

The 22% federal rate is a flat IRS-mandated withholding minimum for supplemental wages, not your actual tax rate. If your total income (salary plus RSU vests) puts you in the 24%, 32%, 35%, or 37% bracket, the 22% withheld at vest will likely under-cover your real tax bill, and you may owe additional tax when you file — this is one of the most common surprises for RSU recipients.

Most employers automatically sell a portion of your newly-vested shares — at the vest-day market price — to raise enough cash to pay the required federal, state, and FICA withholding, then deposit the remaining shares into your brokerage account. This calculator estimates how many whole shares are sold this way based on your total tax withholding and the vest-day share price.

Only on any gain or loss after vesting. The fair market value at vest becomes your cost basis. If you sell later at a higher price, the difference is a capital gain (short-term if held one year or less from vesting, long-term if held longer); if you sell at a lower price, it's a capital loss. The value already taxed as wage income at vest is not taxed again.

Yes. RSU vesting income is treated as wages for FICA purposes, so it's subject to the 6.2% Social Security tax (up to the $184,500 2026 wage base, combined with your other wages for the year) and the 1.45% Medicare tax (with no cap), plus an extra 0.9% Additional Medicare Tax once your total wages for the year exceed $200,000.