vestingtax.com
RSU tax calculator

RSU tax rate in Texas: no state income tax, federal and FICA still apply

Texas has no state income tax on RSU vests — effective rate is federal plus FICA, not a published Texas RSU percentage.

Rates and rules change. Content is reviewed for tax year 2026. Check the last-reviewed date and methodology on each page, then confirm against IRS or state guidance before you file.

State sourcing rules may depend on facts and timing

Which state taxes RSU income depends on residency, work location, grant terms, and vest date, not just where you live on December 31. Day-count splits and flat-rate estimates on this site are planning tools only, not legal sourcing determinations.

Spot an outdated rate or date?

We update when we can, but we miss things. Send a link to the official source if you have one.

Email us

Your vest pay stub shows federal and FICA lines but no Texas state withholding — and you want to confirm what you actually owe on vest FMV, especially if you moved from California or New York mid-year and worry a prior state may still claim part of your equity income.

In plain terms

Texas does not impose state income tax on wages for typical Texas residents. Your tax rate in Texas is effectively federal income tax plus FICA — Social Security up to the wage base, Medicare, and possible Additional Medicare Tax — not a published Texas percentage. Federal supplemental on may still use IRS Pub. 15 flat rates. Moving from California or New York to Texas does not automatically eliminate prior-state tax on vests earned while connected to that state.

Gather before you start

  • 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.

How the tax works

Texas has no personal income tax on wages — is not subject to TX state income tax for typical residents. That is why searches for a Texas tax rate often return federal-only numbers. The event is still fully taxable at the federal level and for FICA purposes nationwide.

Federal progressive tax applies to the same way in Texas as in California or New York. FICA runs on wages with Social Security stopping at the annual wage base and Medicare applying to the full amount. Employer supplemental on equity uses IRS Pub. 15 flat methods — that is federal , not a Texas rate.

Pay stubs for Texas residents typically show federal and FICA lines on a with no state income tax . Boxes 16–17 may show zero Texas state tax for pure TX resident vests while Box 1 still includes the full federally.

Moving from California or New York mid-year does not erase prior-state tax on vests connected to your old residency or work location. A that occurred while you were still a California resident may remain California-connected even after you establish Texas residency. Post-move vests as a Texas resident follow Texas rules — no state income tax on wages for typical residents.

The practical planning number for Texas is federal plus remaining FICA on the . Use the Texas vs California comparison calculator when weighing offers — Texas removes the state layer only, not federal tax. Federal estimated payments may still be needed when supplemental falls short of your .

What to check on your end

  • 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 .
1 more checklist item
  • Texas vs California calculator for move planning.

Assuming Texas residency eliminates all RSU tax rate

Texas eliminates state income tax on wages for typical residents. Federal tax and FICA remain — often the majority of tax for high earners.

What to pull from your files

  • 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.

Logan moved from California to Texas in March. Logan's January while CA resident may have CA sourcing. Logan's October as TX resident has no TX state income tax — federal and FICA only. Logan uses California-to-Texas move guide and runs tax calculator with Texas selected for post-move vests.

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.

When a CPA is worth it

  • 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.

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.

Texas has no state wage income tax; federal and FICA on RSU vest FMV.

Related calculators

Related pages

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.

Editorial standardsDisclaimer