You live in Texas — Austin, Dallas, Houston — and want the RSU tax rate when your state does not tax wages. You need to know what you still pay on vest day and when a prior state may claim part of your equity income.
Start here
What you need before using this
- Texas residence documentation for year.
- confirmation and pay stub.
- Prior state if you moved during year.
- YTD salary for FICA wage base.
- Federal marginal bracket estimate.
Texas tax law can change. Multi-state sourcing requires fact-specific review beyond state rate overview.
Why this happens
Texas has no personal income tax on wages — is not subject to TX state income tax for typical residents.
Federal progressive tax applies to nationwide.
FICA applies same as other states — no Texas exemption.
Employers may still show federal supplemental on without TX state line.
Remote work for out-of-state employer can create other state sourcing despite TX residence.
Moving from CA or NY mid-year triggers part-year and sourcing rules for pre-move income.
Texas vs California calculator useful for offer comparison — TX removes state layer only.
No state estimated tax for TX income tax — federal estimated payments may still be needed.
Boxes 16–17 may show zero TX state tax for pure TX resident vests.
Property and other Texas taxes unrelated to income.
Stock options and same TX wage treatment at state level when TX-sourced.
gap often federal-only for TX residents — still material at high income.
Bonus and stack into higher federal brackets same as other states.
Employer office in Texas does not change federal rules — only state layer absent.
tax rate Texas searches often compare to California — state difference is the main gap.
What to check
- Pay stub: federal and FICA on , no TX state income tax line.
- rate on confirmation.
- Federal gap vs .
- Move date and prior-state if relocated.
- Remote work policy for multi-state sourcing.
- Box 1 federal wages include .
- Social Security cap before large .
- Texas vs California calculator for move planning.
Assuming Texas residency eliminates all RSU tax
What to check in your documents
- pay stub federal and FICA lines.
- Boxes 1, 4, 6.
- Move records if part-year other state.
- confirmation.
- Prior-state allocation forms if applicable.
Austin engineer vesting after CA move
Illustration only, not your tax situation.
Questions people ask
- What is the RSU tax rate in Texas?
- No TX state income tax on wages for typical residents. Effective rate is federal plus FICA based on your bracket and YTD wages.
- Are RSUs taxed in Texas?
- Yes for federal and FICA. No state income tax on wages for typical TX residents.
- Texas vs California RSU tax rate?
- California adds progressive state tax. Texas does not — use state comparison calculators.
- Why federal withholding on Texas RSU vest?
- Federal tax always applies. Supplemental uses IRS Pub. 15 rates, not a Texas rate.
- Moved from California — Texas rate on old RSU?
- CA may tax pre-move connected income. Post-move TX vests avoid TX state income tax.
- Texas remote worker RSU tax?
- TX resident generally no state tax on wages; other states may claim if work sourced elsewhere.
- Which calculator for Texas RSU?
- tax calculator with Texas selected; Texas vs California comparison for moves.
- W-2 state boxes in Texas for RSU?
- Often zero state tax for pure TX resident. Box 1 still includes federally.
- FICA on Texas RSU vest?
- Same as all states — Social Security and Medicare on as wages.
- Related guides?
- Texas tax guide, California to Texas move, no-tax-state role guide, effective tax rate guide.
When to get help from a tax pro
- Multi-state with TX and another state on same year.
- Employer withheld CA or NY tax while TX resident.
- International assignment with TX residence.
- Prior-state audit of equity income after move.
Related calculators
- RSU Tax Calculator
Model federal and state taxes on your RSU vest, compare withholding to estimated tax, and see what you may keep.
- Texas vs California RSU Calculator
See how Texas and California differ on RSU state tax estimates for the same vest value.
- RSU Withholding Gap Calculator
Focus on the gap between what your employer withholds on RSU vests and what you may owe when everything is reconciled.
Related pages
- Texas RSU Tax Guide
Texas does not impose state income tax on wages, which changes cash-flow planning but not federal RSU tax.
- California to Texas RSU Tax Guide
Texas has no state income tax on wages, but your move date relative to vest dates still matters for CA.
- New York to Texas RSU Tax Guide
Texas does not tax wage income at the state level; track NY-sourced wages from before your move.
- RSU Tax Rate in Washington
Washington has no state income tax on RSU vests — your effective rate is federal plus FICA, not a single published WA RSU percentage.
- RSU Tax Guide for Employees Moving to a No-Tax State
No state income tax does not eliminate RSU federal tax or prior-state sourcing on old wages.
Sources and notes
Primary tax claims on this page are supported by the official and secondary sources below. Broker and software links describe reporting mechanics — confirm rules against IRS or state guidance.
State residency and equity-income sourcing vary by state; examples cite California FTB guidance.
- FTB Publication 1100 — Taxation of Nonresidents and Individuals Who Change Residency
California Franchise Tax Board · Official
Resident vs nonresident treatment, California-source wages, and equity compensation when residency changes.
- FTB Publication 1004 — Equity-Based Compensation Guidelines
California Franchise Tax Board · Official
California sourcing for RSUs, stock options, and related equity pay for residents and nonresidents.
For learning, not filing
VestingTax.com is not a CPA firm or tax preparer. Grants, employers, and states all differ. Use the cited IRS and state sources above, your own documents, and a qualified tax professional before you make decisions from this guide.