Two separate tax events, easy to conflate
Vesting and selling are taxed independently — vesting is ordinary income on the full value, and only the gain or loss after that point (if you hold before selling) is a capital gain. This doesn't net a loss here against other gains you may have; for that, see the Tax-Loss Harvesting Calculator.
Frequently asked questions
How are RSUs taxed at vesting?
The full market value of shares on the vesting date counts as ordinary income, taxed like a bonus — subject to federal, state and FICA withholding — even if you don't sell a single share. Many employers cover this by withholding some of the shares themselves ("sell to cover").
What happens if I sell after vesting?
Any change in price between vesting and sale is a capital gain or loss. Held over a year past vesting, it qualifies for long-term capital gains rates; sold sooner, it's taxed at short-term rates — enter whichever rate applies to you.
Does this cover stock options too?
Only loosely — options add complexity this doesn't model, especially Incentive Stock Options (ISOs), which can trigger the Alternative Minimum Tax on the exercise spread even without selling. For Non-Qualified Stock Options (NSOs), the exercise spread is taxed similarly to RSU vesting, so you can approximate it by entering the spread as the "value at vesting" below.
Last updated: June 2026