This online calculator allows you to estimate both federal and state taxes due to an IPO or vested RSUs and is especially useful as it takes into account capital gains, deductions and existing tax withholdings, showing you the additional taxes due that you may need to prepare for.
The calculator primarily focuses on Restricted Stock Units (RSUs). If you wish to look at the tax effect of Incentive Stock Options (ISOs), please use our Alternative Minimum Tax (AMT) Calculator instead, as the tax rules around ISOs are quite different.
Lastly, this calculator is most useful if you can project all the RSU vesting events and tax withholdings for the calendar year, so that you can get the most accurate tax liability possible.
Instructions: For this section, select the number of RSU "Vesting Events" that have occurred this year. A "vesting event" is a single date in which a certain amount of your RSUs vest. You may have multiple RSU grants that vest different amounts of stock. All the stocks that vest on the same day is considered part of the same "vesting event" as you receive them at the same time at the same price.
For example, if your RSUs vest at the end of each month, and today is July 10th, you will have had 6 vesting events so far, regardless of how many different grants you have. For each vesting event, input in the number of total shares vested on that day alongside the Fair Market Value (FMV) of the stock price on that day.
For estimating taxes for IPOs: All your vested RSUs will be granted on the day of IPO, so you will have only "1" vesting event. Input all the shares vested and the IPO price in the boxes below.
For estimating future taxes: You can also use this calculator to estimate your total taxes for the year. However, you will need to input your best guess in terms of what the stock price will be at a future vesting event.
Instructions: For this section, input your total income taxes withheld from your employer to estimate how much additional taxes you will owe. Either input year-to-date numbers from your paystubs or a projection of total withholdings for the year.
For RSU Tax Withholding: Select if your employer withholds whole or partial RSUs for tax purposes. If you do not know, they likely withhold whole shares. In addition, input the % withheld (the federal minimum for RSUs is 22% and will be the default used in calculations).
For those calculating 2022 federal taxes, numbers will continue to to be updated as Congress updates the tax code. For those calculating state taxes, please see the disclaimer at the bottom of "State Tax Breakdown".
*Disclaimer: Due to the fact that state tax laws are created independently by each state on different timetables, the state taxes owed that are calculated here are rough estimates of what you may end up owing, and are not meant to be taken as exact calculations. You can find a list of caveats and assumptions of our methodology below: