RSU Capital Gains Calculator

How to Estimate Your Tax Bill Before You Sell

Most people with RSUs know they'll pay taxes when shares vest. What catches them off guard is the second tax hit when they sell: capital gains taxes on any appreciation. If your RSU shares have grown significantly since vesting, this "profit tax" can be substantial, especially if you haven't held the shares long enough to qualify for preferential long-term rates.

Calculate your tax liability when selling vested RSU shares. Track multiple vesting tranches and see the impact of holding periods on your tax bill.

Sale Information

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Tax Information

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Net Investment Income Tax applies if income > $200k (single) or $250k (married)

Vesting Tranches

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**Important Notice: This calculator provides general estimates based on the information you enter and should not be considered professional financial, tax, or investment advice. The results are approximations for informational purposes only and may not reflect your actual financial situation or outcomes. Market conditions, tax laws, contribution limits, and other factors can change and may significantly impact your results. We recommend consulting with qualified financial, tax, or legal professionals before making major financial decisions. Your actual results may vary considerably from these estimates.

Introduction

Marcus stared at his laptop screen, watching his company's stock price climb past $190 per share. His RSUs had vested at prices ranging from $75 to $165 over the past three years. Now he was considering selling everything to buy a house. His first thought wasn't about the down payment. It was about the tax bomb waiting for him.

Sound familiar? You're not alone. Restricted Stock Units create one of the most complex tax situations in modern compensation, and most people have no idea what they'll owe until it's too late. The difference between smart RSU planning and winging it can easily cost you tens of thousands of dollars.

Here's what most people don't realize: your RSU tax bill has two completely separate components. You already paid ordinary income tax when your shares vested. But when you sell those shares, you might owe capital gains tax on top of that. The amount depends on how long you held each batch of shares and how much the stock price moved since each vesting date.

The good news? You can calculate this ahead of time. Every vesting date creates a separate "lot" with its own cost basis and holding period, which means you can project your exact tax liability for any future sale scenario. This article covers how to calculate capital gains taxes on RSUs, including step-by-step formulas, tax rate differences, quarterly vesting tracking, and optimization strategies.
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What Are RSU Capital Gains Taxes?

RSU capital gains taxes are taxes you pay on the profit when you sell Restricted Stock Units after they vest. These taxes are separate from the ordinary income taxes you already paid when the shares vested.

When you sell RSU shares, you owe capital gains tax on the difference between the vesting price (your cost basis) and the sale price. The tax rate depends on how long you held the shares after vesting.
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How RSU Taxation Works: The Two-Tax System

RSUs trigger two separate tax events:

Tax Event 1: At Vesting

  • You pay ordinary income tax on the fair market value of the shares
  • This amount appears on your W-2
  • Your employer typically withholds approximately 22% for federal taxes
  • The vesting price becomes your cost basis

Tax Event 2: At Sale

  • You pay capital gains tax on the profit (sale price minus vesting price)
  • Short-term capital gains (held less than 12 months): taxed as ordinary income
  • Long-term capital gains (held more than 12 months): taxed at preferential rates

Example: 100 shares vest at $120 per share. You pay ordinary income tax on $12,000. Two years later, you sell at $180 per share. You pay long-term capital gains tax on the $60 per share profit ($6,000 total), not on the full $18,000 sale proceeds.

The IRS provides detailed guidance on Net Investment Income Tax calculations for high earners.
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How to Find Your RSU Cost Basis

Your cost basis equals the fair market value of the stock on each vesting date. To find this information:

  1. Check your W-2 forms (RSU income is reported here)
  2. Review equity compensation statements from your employer
  3. Access your company's stock plan administrator portal
  4. Contact your company's HR or stock plan administrator directly

Most companies maintain detailed records of all vesting events and can provide this information upon request.

For detailed guidance on determining your cost basis, see IRS Publication 550.

Why Quarterly Vesting Complicates RSU Capital Gains

Most RSU grants vest quarterly over four years. Each quarterly vesting creates a separate tax lot with its own:

  • Cost basis (based on stock price that day)
  • Holding period (starting from that specific vesting date)
  • Capital gains calculation

This means you must track each vesting separately to calculate accurate capital gains.

Example:

Sarah's 1,600 RSUs vest 100 shares per quarter starting in 2022:

  • Q1 2022: 100 shares at $95 (cost basis: $9,500)
  • Q2 2022: 100 shares at $110 (cost basis: $11,000)
  • Q3 2022: 100 shares at $125 (cost basis: $12,500)
  • Q4 2022: 100 shares at $140 (cost basis: $14,000)

When Sarah sells in September 2025 at $200 per share:

  • Q1 batch: $105 per share gain = $10,500 total
  • Q2 batch: $90 per share gain = $9,000 total
  • Q3 batch: $75 per share gain = $7,500 total
  • Q4 batch: $60 per share gain = $6,000 total

Total capital gains from first year: $33,000

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Short-Term vs. Long-Term Capital Gains: Tax Impact

The holding period determines your tax rate. The holding period starts on each vesting date, not your original grant date.

Tax Rate Comparison Example:

Jennifer has $50,000 in capital gains split between short-term and long-term:

Scenario 1: Mixed holding periods

  • $25,000 long-term gains at 15% = $3,750
  • $25,000 short-term gains at 32% = $8,000
  • Total tax: $11,750

Scenario 2: All long-term

  • $50,000 long-term gains at 15% = $7,500
  • Total tax: $7,500

Tax savings from waiting: $4,250
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The IRS provides complete capital gains tax rate tables updated annually.

Short-Term vs. Long-Term: Tax Impact

See how much you could save by holding your RSUs for one year

$50,000

Capital gain from selling RSUs

Income Bracket
$95K - $183K
(Single filer)
Short-Term Tax
$12,000
24% rate
Long-Term Tax
$7,500
15% rate
$4,500
savings
Income Bracket
$183K - $231K
(Single filer)
Short-Term Tax
$16,000
32% rate
Long-Term Tax
$7,500
15% rate
$8,500
savings
Income Bracket
$231K - $578K
(Single filer)
Short-Term Tax
$17,500
35% rate
Long-Term Tax
$10,000
20% rate
$7,500
savings
Income Bracket
$578K+
(Single filer)
Short-Term Tax
$18,500
37% rate
Long-Term Tax
$10,000
20% rate
$8,500
savings

Key takeaway: Holding RSUs for at least one year before selling can save you between $4,500 - $8,500 on a $50,000 gain, depending on your income bracket.

Common RSU Capital Gains Mistakes

Mistake 1: Assuming company withholding covers all taxes
Companies typically withhold 22% for federal taxes at vesting, but your actual tax rate may be higher. This withholding does not cover capital gains taxes when you sell.
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Mistake 2: Poor record-keeping
Without detailed records of each vesting date and stock price, you cannot accurately calculate your cost basis. This often leads to overpaying taxes.
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Mistake 3: Selling before long-term qualification
Selling shares just before they reach the 12-month holding period triggers ordinary income tax rates instead of preferential long-term rates.
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Mistake 4: Ignoring state taxes
Some states tax capital gains as ordinary income, while others have no state income tax. State tax treatment significantly impacts your total tax liability.
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Mistake 5: Wash sale violations
If you sell RSU shares at a loss and buy the same stock within 30 days, the IRS disallows the loss deduction.

The wash sale rule prevents you from claiming losses if you repurchase the same security within 30 days.

Build Your RSU Capital Gains Tracking Spreadsheet

Create a powerful spreadsheet to track your RSU holdings, calculate tax implications, and plan your selling strategy. Follow this step-by-step guide.

1 Set Up Your Columns

Start with these 15 columns (A through O) to track everything from vesting dates to net proceeds after tax.

Column A
Vesting Date
Column B
Shares Vested
Column C
Stock Price at Vesting
Column D
Total Cost Basis
Column E
Days Held
Column F
Holding Period Status
Column G
Sale Price (Scenario)
Column H
Gain Per Share
Column I
Total Gain
Column J
Federal Tax Rate
Column K
State Tax Rate
Column L
Federal Tax Owed
Column M
State Tax Owed
Column N
Total Tax Owed
Column O
Net Proceeds After Tax

2 Enter Your Sample Data (Row 2)

Start with your first vesting event to test the formulas. You'll only manually enter these four columns.

A2 (Vesting Date): 1/15/2023
B2 (Shares): 200
C2 (Price at Vest): $85.00
G2 (Sale Price): $165.00

3 Add These Formulas

Copy these formulas into their respective cells. Everything else will calculate automatically.

Total Cost Basis D2
=B2*C2

Multiplies shares by vesting price to get your cost basis

Days Held E2
=TODAY()-A2

Calculates days between vesting date and today

Holding Period Status F2
=IF(E2>365,"Long-Term","Short-Term")

Automatically labels based on 365-day threshold

Gain Per Share H2
=G2-C2

Sale price minus cost basis

Total Gain I2
=H2*B2

Gain per share times number of shares

Federal Tax Rate J2
=IF(F2="Long-Term",0.15,0.32)

15% for long-term, 32% for short-term (adjust 0.32 to your bracket)

State Tax Rate K2
0.05

Enter your state's capital gains rate (use 0 for no state tax)

Federal Tax Owed L2
=I2*J2

Total gain times federal rate

State Tax Owed M2
=I2*K2

Total gain times state rate

Total Tax Owed N2
=L2+M2

Sum of federal and state taxes

Net Proceeds After Tax O2
=(G2*B2)-N2

Gross proceeds minus total tax

4 Add Conditional Formatting

Visual alerts help you quickly identify which shares qualify for lower tax rates.

Highlight Short-Term Holdings
  • Select range F2:F100
  • Add conditional formatting rule: =F2="Short-Term"
  • Format: Light red fill, red text
  • This warns you which batches don't qualify for long-term rates yet
Highlight Shares Approaching Long-Term Status
  • Select range E2:E100
  • Add conditional formatting rule: =AND(E2>=335, E2<365)
  • Format: Yellow fill
  • Shows shares that will become long-term in the next 30 days
Highlight Long-Term Holdings
  • Select range F2:F100
  • Add conditional formatting rule: =F2="Long-Term"
  • Format: Light green fill
  • Visual confirmation of preferential tax treatment

5 Create Summary Metrics

Add these formulas below your data to get a portfolio-wide view.

Total Shares
=SUM(B:B)
Total Cost Basis
=SUM(D:D)
Short-Term Shares
=SUMIF(F:F,"Short-Term",B:B)
Long-Term Shares
=SUMIF(F:F,"Long-Term",B:B)
Total Projected Gain
=SUM(I:I)
Total Tax Owed
=SUM(N:N)
Net Proceeds
=SUM(O:O)
Effective Tax Rate
=SUM(N:N)/SUM(I:I)

6 Pro Tips for Power Users

Take your spreadsheet to the next level with these advanced features.

💡 Named Ranges for Tax Rates

Create a separate reference table for tax rates (long-term: 0.15, your bracket: 0.32, state: 0.05). Reference these cells in your formulas so you only need to update one place if rates change.

📊 Data Validation for Sale Price

Add a dropdown in the sale price column with common increments ($140, $150, $165, $180, $200) for quick scenario testing.

📝 Add a Notes Column

Track important details like "Received as performance bonus," "Part of sign-on grant," or "Do not sell before 12/31/25."

📑 Separate Tabs by Grant

If you have multiple RSU grants, create a tab for each grant and a master summary tab that pulls totals from all grants.

📈 Google Sheets: Auto-Update Stock Price

If using Google Sheets with a publicly traded company, use =GOOGLEFINANCE("NASDAQ:AAPL","price") to auto-update current stock prices.

🔄 Multi-Scenario Analysis

Create columns P and Q for different sale price scenarios (conservative $140, optimistic $200). Copy formulas H-O but reference these new prices to model "what if" scenarios side-by-side.

7 Complete Example Row

Here's what your completed row should look like. Copy this entire row down for each vesting event.

A
Vest Date		 B
Shares		 C
Price		 D
Cost Basis		 E
Days Held		 F
Status		 G
Sale Price		 H
Gain/Share		 I
Total Gain		 J
Fed Rate		 K
State Rate		 L
Fed Tax		 M
State Tax		 N
Total Tax		 O
Net
1/15/23 200 $85 =B2*C2 =TODAY()-A2 =IF(E2>365,"Long","Short") $165 =G2-C2 =H2*B2 =IF(F2="Long",0.15,0.32) 0.05 =I2*J2 =I2*K2 =L2+M2 =(G2*B2)-N2

Need Help Planning Your RSU Strategy?

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When to Seek Professional Help

Managing RSUs can get complex quickly. Here are signs it might be time to work with an advisor who specializes in equity compensation.

Substantial Holdings

Your RSUs represent a significant portion of your net worth and require careful diversification planning.

Multiple Employers

You have RSUs from different companies with varying vesting schedules and tax implications.

International Considerations

You received RSUs while working abroad or are planning to move internationally.

Major Life Changes

Facing marriage, divorce, retirement, or other significant transitions affecting your finances.

Complex Tax Strategies

You need sophisticated approaches like tax-loss harvesting, charitable giving, or AMT planning.

Find Advisors Who Understand RSUs

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Frequently Asked Questions About RSU Capital Gains

How do I find the cost basis for RSUs that vested years ago?

Your cost basis equals the fair market value of the stock on each vesting date. Check your old W-2 forms, equity compensation statements, or contact your company's stock plan administrator. Most companies maintain detailed records of vesting events and can provide this information upon request.

Can I use specific identification to choose which shares to sell?

Yes, you can specify which tax lots to sell, allowing you to optimize for tax purposes. You might choose to sell shares with the highest cost basis first to minimize gains, or prioritize long-term holdings to benefit from preferential tax rates. Make sure to document your specific identification instructions with your broker.

What happens if I leave my company before all RSUs vest?

Unvested RSUs typically are forfeited when you leave, though some companies allow accelerated vesting in certain circumstances. Vested RSUs remain yours to keep, but you may face restrictions on when you can sell them. Check your equity compensation agreement for specific terms.

Do RSU capital gains count toward the net investment income tax?

Yes, if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly), your RSU capital gains may be subject to the additional 3.8% net investment income tax. This applies to both short-term and long-term gains.

How do stock splits or dividends affect my RSU cost basis?

Stock splits adjust both your share count and cost basis proportionally. If you owned 100 shares with a $50 cost basis and the stock splits 2-for-1, you'll own 200 shares with a $25 cost basis each. Dividends don't affect cost basis but may trigger additional tax obligations.

Can I offset RSU gains with losses from other investments?

Yes, capital losses from other investments can offset RSU capital gains. Short-term losses offset short-term gains first, then long-term gains. Long-term losses offset long-term gains first, then short-term gains. Net losses up to $3,000 can offset ordinary income annually.

What records should I keep for RSU transactions?

Maintain detailed records of each vesting event including date, number of shares, and stock price. Keep all equity compensation statements, tax forms, and sale confirmations. Document any corporate actions like splits or spin-offs that might affect your cost basis calculations.

How do state taxes affect RSU capital gains calculations?

State treatment varies significantly. Some states tax capital gains as ordinary income, others provide preferential rates, and some have no state income tax. If you move between states, the timing of your RSU sales relative to your relocation can impact your total tax liability.

Should I sell RSUs immediately upon vesting to avoid capital gains?

This depends on your individual situation. Immediate sales eliminate capital gains risk but also eliminate potential upside. Consider your overall portfolio diversification, tax situation, and financial goals. Sometimes holding for long-term treatment provides better after-tax returns despite the additional risk.

Can I contribute RSU shares to a retirement account?

You cannot directly contribute RSU shares to traditional retirement accounts like 401(k)s or IRAs. However, you can sell the shares and contribute the cash proceeds, subject to annual contribution limits. Some companies offer employee stock purchase plans that might provide alternative tax-advantaged options.