How to calculate tax on RSUs
RSUs are taxed twice in different ways: as income at vesting on the market value of the shares, then as a capital gain on any growth between vesting and sale. Employers usually sell some shares at vest to cover the income tax.
The rule
At vest: shares vested × share price taxed as income · At sale: (sale price − vest price) × shares taxed as capital gain
Do it automatically — RSU / equity taxStep by step
- 1Multiply the number of shares vesting by the market price on the vest date.
- 2Add that value to your salary and tax it at your marginal rate plus social contributions.
- 3Note the vest-date price — it becomes your cost basis.
- 4On sale, tax the gain above that basis as a capital gain, after your annual exemption.
What trips people up
- • Employers often withhold at a flat rate that under-withholds for higher earners, leaving a bill at year-end.
- • Holding all your vested shares concentrates your salary and savings in one company.
Common questions
Should I sell at vest?
Selling immediately has no extra tax cost, since the income tax is already charged, and it removes concentration risk.
What if the share price falls after vesting?
You still owe income tax on the vest-date value; the fall becomes a capital loss.
Skip the maths
Estimate income tax + NI/social contributions due on vesting RSUs.
Open the tax on vesting shares tool