Tax and equity compensation

RSU withholding gap

For an upcoming RSU vest, estimate the difference between what the employer will withhold and the tax the vest actually generates, and translate the gap into shares to sell or an estimated payment.

The vest

Shares vesting

1 to 1,000,000.

Share price at vest

Expected fair market value on the vest date.

Vest date

Within the 2026 tax year.

This year's income (excluding this vest)

Filing status

Other wages this year

Salary, bonus and prior vests for the full year, excluding this vest.

Other taxable income

Interest, dividends, spouse's income.

YTD supplemental wages before this vest

Bonuses and earlier vests this year; the 37% mandatory rate starts above $1,000,000.

YTD total wages before this vest

For Social Security and Additional Medicare.

Pre-tax deferrals

401(k), HSA and similar for the year.

Deduction

Itemized amount

Used only when itemized is selected; applied to both federal and California.

Employer withholding override

Optional. Some employers let you elect a higher rate, 22 to 37.

Safe harbor (federal)

Prior-year total tax

2025 Form 1040 line 24.

Prior-year AGI

Above $150,000 ($75,000 MFS) the safe harbor is 110% of prior-year tax.

Federal withholding and estimates paid YTD

Regular withholding expected for the rest of the year

From paychecks after the vest, if known. Leave 0 for a conservative view.

Withholding gap on this vest

—

Loading tax parameters.

Show the math

Assumptions and limits