How is RSU vesting taxed in Texas?

RSUs are taxed as ordinary income at vest. The FMV on vest date is added to your W-2 wages. Federal supplemental withholding is typically 22%, plus FICA. Use the calculator above for your Texas estimate.

Does Texas tax RSU vesting?

No. Texas has no state income tax, so only federal tax and FICA apply to RSU vesting. Your take-home from RSU vesting in Texas is higher than in states that tax income.

What is sell-to-cover on RSUs?

Sell-to-cover means your employer sells a portion of your vesting RSUs to cover tax withholding. You receive the remaining net shares. The calculator shows how many shares are sold and how many you keep based on federal, state, and FICA withholding.

RSU Tax Calculator Texas 2026

Estimate tax on RSU vesting in Texas. See gross income, tax withheld, sell-to-cover shares, net shares received, and after-tax value.

RSU Vesting Details

Enter the number of RSUs vesting and fair market value to estimate tax withholding and net shares.

Number of RSUs vesting

Fair market value (FMV) per share ($)

Filing status

State

Other annual income (salary, bonus, etc.)

Used for Social Security wage base, Medicare threshold, and tax bracket impact.

After sell-to-cover

70.35 shares

$10,553 after-tax value

Gross: $15,000Tax withheld: $4,448 (29.6%)Shares sold: 29.65

Gross RSU income

$15,000

Estimated tax withheld

$4,448

Marginal bracket

24%

Effective tax on RSU

31.6%

Marginal bracket: 24%

Federal Income Tax (supplemental 22%)

Flat 22% supplemental wage withholding

$3,300(22.0%)

Social Security (6.2%)

6.2% on vest value

$930(6.2%)

Medicare (1.45%)

1.45% on all wages

$218(1.4%)

State Tax (TX)

No state income tax

AMT note: RSUs are taxed as ordinary income at vest and generally do not trigger Alternative Minimum Tax (AMT). AMT typically applies to incentive stock options (ISOs) when you exercise and hold. RSUs vest as compensation and are taxed like salary.

Supplemental wage withholding

Employers typically withhold RSU vesting at 22% federal (37% on amounts over $1M) plus state supplemental rates and FICA. This calculator assumes the flat supplemental method. Your actual withholding may vary if your employer uses the aggregate method.

Compare RSU tax across states or use other equity tools.

RSU Tax in Texas: How Texas Affects Your Vest

Why RSU vesting tax in Texas depends on federal withholding, FICA—and how to estimate sell-to-cover and net shares.

RSU vesting tax in Texas

RSUs (restricted stock units) are taxed as ordinary income when they vest. The fair market value (FMV) on the vest date is added to your W-2 wages. Employers typically withhold at the supplemental rate: 22% federal (37% above $1M), plus FICA (6.2% Social Security up to the wage base, 1.45% Medicare). This calculator uses your state (Texas) to estimate total withholding and how many shares are sold to cover tax.

Texas state tax on RSUs

Texas has no state income tax. Only federal and FICA apply to RSU vesting, so your take-home from RSU vesting in Texas is higher than in states that tax income. Compare with RSU Tax Calculator California or RSU Tax Calculator New York to see the difference.

Sell-to-cover and net shares in Texas

With sell-to-cover, your employer sells some vesting shares to pay the tax and delivers the rest to your brokerage. Shares sold = Tax withheld ÷ FMV per share. The calculator shows how many shares you keep after federal, FICA withholding. For full vesting schedules, use our Equity Vesting Calculator; when a tranche vests, use this tool for that vest event.

RSU Tax FAQ – Texas

Common questions about RSU vesting tax in Texas