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RSUs · Taxation
What is taxed, and when, from grant to vest to exercise to sale.
How RSUs are taxed
RSUs are taxed as ordinary income the day they vest, then as capital gains on anything they earn after that. The trap is the gap between what your employer withholds and what you actually owe, and on a big year it pulls in surtaxes and quarterly payments too.
2026 RSU supplemental withholding rates
The flat supplemental rates that apply to your 2026 vests, and why they often under-withhold.
How RSUs are taxed at an IPO
An IPO can detonate years of double-trigger RSUs into one tax year. The income stacks, the withholding falls short, and the bill arrives while the stock is still locked up.
State tax on RSUs when you move states
Move to a no-tax state and your RSUs do not all become tax-free. The state where you worked while they vested can still tax that slice of the income.
More RSUs categories