RSU Vesting & Tax Calculator
RSU taxation at both events. Vesting is a salary perquisite taxed at slab whether or not you sell, and only the gain after vesting is a capital gain.
Also called: rsu tax india, restricted stock unit tax.
$840,000.00 across both events: $637,500.00 at vest as salary perquisite and $202,500.00 on the gain since. Held 18 months, short of the 24 month threshold, so the gain is taxed at slab. Net proceeds are $1,960,000.00.
Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
RSUs are taxed at vesting on the full market value as a salary perquisite, at your slab, with the employer usually selling units to cover it. That tax is due whether or not you sell anything. The cost basis then resets to the vesting price, so only appreciation after that point is a capital gain. The holding period for long term treatment starts at vesting, not at grant, and differs between shares listed in India and those listed abroad, which for employees of foreign companies is the more common case.
RSUs are taxed twice: as salary at vest, then as capital gains on any further appreciation- n
- Units
Method and limits
What it assumes
- A single vesting tranche sold in one transaction.
What it deliberately does not model
- Foreign shares must be reported in the foreign asset schedule, with penalties for omission that dwarf the tax.
- Currency movement between vest and sale creates gain or loss not modelled here.
- Holding period thresholds are set by statute and change.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Am I taxed even if I do not sell?
- Yes. Vesting is a taxable perquisite on the full market value, regardless of whether you sell. That is why employers usually sell part of the grant to cover the tax.
- When does my holding period start?
- At vesting, not at grant. The cost basis is the vesting price, so everything before then has already been taxed as salary.