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Restricted Stock Units (RSUs) have become a common part of employee compensation, especially in fast-growing industries like technology, finance, and biotech. While RSUs are an excellent way to build long-term wealth, many employees feel unprepared for the tax responsibilities that come with them. The moment RSUs vest, their market value is considered taxable income, which can quickly increase your tax bill. This is why having the right tools to estimate your liability is so important. One such tool is the AMT Tax Calculator
, which helps employees understand the impact of RSUs and other income on their overall taxes.
Why RSU Taxes Are Often Confusing
Unlike regular wages, RSU income is taxed differently and often surprises employees. Here’s why:
Federal Income Tax Withholding – Employers typically withhold 22% on RSU income (or 37% if the annual total exceeds $1 million). However, your actual tax bracket may be higher, which means the withholding may not cover everything you owe.
Payroll Taxes – Social Security (6.2%) applies up to a capped amount of income, while Medicare (1.45%) applies to all income, with an extra 0.9% surtax for higher earners.
State Taxes – Depending on your state of residence, RSUs may also be subject to significant additional taxes.
Alternative Minimum Tax (AMT) – For certain employees, especially those receiving other forms of equity compensation, the AMT can further complicate their overall tax situation.
This combination makes it difficult to know whether your employer’s withholding will be enough—or whether you’ll end up with an unpleasant surprise at tax time.
How the Calculator Helps
The AMT Tax Calculator allows you to input a few simple details such as:
Number of RSUs vesting
Stock price at vesting
Salary and bonus income
State tax rate
Filing status
From there, it estimates your total taxable income, your likely federal and state taxes, and compares them against standard withholding. If there’s a gap, you’ll see exactly how much more you might owe. This empowers you to plan ahead instead of being caught off guard.
For example, if you have 200 RSUs vesting at $100 per share, that’s $20,000 in taxable income added to your salary. If you’re already in the 32% tax bracket, but your employer withholds only 22%, you could owe thousands more when filing your return. The calculator highlights that difference clearly.
The Benefits of Planning Ahead
Using a tax calculator for RSUs offers several real advantages:
Avoid Surprises – Get an early warning if your withholding isn’t enough.
Plan Proactively – Adjust your W-4 or make estimated tax payments before penalties hit.
Smarter Financial Decisions – Understanding after-tax income helps you decide when to sell, hold, or reinvest.
Peace of Mind – No more worrying about a big unexpected tax bill at the end of the year.
Final Thoughts
RSUs are a valuable benefit, but the taxes tied to them can feel overwhelming. The good news is that with tools like the AMT Tax Calculator, you can quickly estimate your liability, identify potential shortfalls, and take control of your financial planning. Instead of dreading tax season, you’ll have the clarity and confidence to manage your equity compensation wisely and maximize your long-term gains.
At the risk of saying the phrase jump hour too many times to where it could be confusing, let's make this very clear. The Tambour Convergence is not a jump-hour watch. This digital readout, visible via a sculpted guichet, is what Louis Vuitton refers to as link "dragging hours and minutes." The potentially obvious difference being that the hour display on the new Convergence will slowly rotate all day, saving its knees from all those jumps!
The watch will leave the family and likely find a new home with a well-heeled Rolex collector. But the engraving in the caseback will forever remain unchanged, marking the man whose high-flying adventures link and commitment to the mission of the Thunderbirds allow them to keep inspiring us to this very day.
Restricted Stock Units (RSUs) have become a common part of employee compensation, especially in fast-growing industries like technology, finance, and biotech. While RSUs are an excellent way to build long-term wealth, many employees feel unprepared for the tax responsibilities that come with them. The moment RSUs vest, their market value is considered taxable income, which can quickly increase your tax bill. This is why having the right tools to estimate your liability is so important. One such tool is the AMT Tax Calculator
, which helps employees understand the impact of RSUs and other income on their overall taxes.
Why RSU Taxes Are Often ConfusingUnlike regular wages, RSU income is taxed differently and often surprises employees. Here’s why:
Federal Income Tax Withholding – Employers typically withhold 22% on RSU income (or 37% if the annual total exceeds $1 million). However, your actual tax bracket may be higher, which means the withholding may not cover everything you owe.
Payroll Taxes – Social Security (6.2%) applies up to a capped amount of income, while Medicare (1.45%) applies to all income, with an extra 0.9% surtax for higher earners.
State Taxes – Depending on your state of residence, RSUs may also be subject to significant additional taxes.
Alternative Minimum Tax (AMT) – For certain employees, especially those receiving other forms of equity compensation, the AMT can further complicate their overall tax situation.
This combination makes it difficult to know whether your employer’s withholding will be enough—or whether you’ll end up with an unpleasant surprise at tax time.
How the Calculator HelpsThe AMT Tax Calculator allows you to input a few simple details such as:
Number of RSUs vesting
Stock price at vesting
Salary and bonus income
State tax rate
Filing status
From there, it estimates your total taxable income, your likely federal and state taxes, and compares them against standard withholding. If there’s a gap, you’ll see exactly how much more you might owe. This empowers you to plan ahead instead of being caught off guard.
For example, if you have 200 RSUs vesting at $100 per share, that’s $20,000 in taxable income added to your salary. If you’re already in the 32% tax bracket, but your employer withholds only 22%, you could owe thousands more when filing your return. The calculator highlights that difference clearly.
The Benefits of Planning AheadUsing a tax calculator for RSUs offers several real advantages:
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Final ThoughtsAvoid Surprises – Get an early warning if your withholding isn’t enough.
Plan Proactively – Adjust your W-4 or make estimated tax payments before penalties hit.
Smarter Financial Decisions – Understanding after-tax income helps you decide when to sell, hold, or reinvest.
Peace of Mind – No more worrying about a big unexpected tax bill at the end of the year.
RSUs are a valuable benefit, but the taxes tied to them can feel overwhelming. The good news is that with tools like the AMT Tax Calculator, you can quickly estimate your liability, identify potential shortfalls, and take control of your financial planning. Instead of dreading tax season, you’ll have the clarity and confidence to manage your equity compensation wisely and maximize your long-term gains.
At the risk of saying the phrase jump hour too many times to where it could be confusing, let's make this very clear. The Tambour Convergence is not a jump-hour watch. This digital readout, visible via a sculpted guichet, is what Louis Vuitton refers to as link "dragging hours and minutes." The potentially obvious difference being that the hour display on the new Convergence will slowly rotate all day, saving its knees from all those jumps!
The watch will leave the family and likely find a new home with a well-heeled Rolex collector. But the engraving in the caseback will forever remain unchanged, marking the man whose high-flying adventures link and commitment to the mission of the Thunderbirds allow them to keep inspiring us to this very day.