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RSU tax calculator

RSU tax rate in Virginia: state, federal, and FICA on vest income

Virginia applies progressive state income tax to RSU vest wages — federal marginal tax and FICA still apply on top.

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.

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Your cliff vest hit while you were commuting across the DC belt — and Virginia withholding on the pay stub does not match what you expected after stacking salary, or you need the real combined hit on vest FMV before accepting a NoVA offer.

In plain terms

Virginia taxes as ordinary wage income for VA residents and income sourced to Virginia under progressive state brackets per Virginia Tax guidance for your filing year. There is no flat Virginia tax rate. Effective tax combines VA state tax, federal income tax, and FICA. Some Virginia localities impose optional local income taxes on residents — check whether your city or county applies a local layer. Employer supplemental on equity may under- when a large stacks on high salary.

Gather before you start

  • VA residency for year.
  • confirmation and VA on pay stub.
  • VA wage boxes.
  • Virginia Tax rate tables for filing year.
  • tax calculator with Virginia selected.

How the tax works

Searches for an tax rate in Virginia usually mean you want one percentage to plan cash for a — but Virginia does not publish a separate equity rate. is taxed as ordinary wages under progressive Virginia Tax brackets, and your effective rate depends on total taxable income for the year, not the alone.

Federal progressive income tax and FICA apply on top of Virginia state tax. FICA runs nationwide on wages with Social Security stopping at the annual wage base and Medicare applying to the full amount. Employer supplemental on equity often uses flat methods that can under- compared with your true stacked on salary plus .

Northern Virginia — Reston, Tysons, Arlington, and the broader DC belt — is where most Virginia planning questions come from. Defense contractors and tech workers often commute from Virginia into DC or Maryland; local tax treatment varies by locality. Some Virginia cities and counties impose optional local income taxes on residents, while many NoVA addresses have no local wage tax beyond state — confirm your locality's rules on Virginia Tax publications for your filing year.

DMV cross-border commuters may owe multiple states on the full return even when Virginia looks correct on the pay stub. Moving from Virginia to Florida or Texas mid-year triggers a part-year Virginia return on pre-move connected income. Remote VA residents working for out-of-state employers still typically owe Virginia tax on wages as resident income.

The practical planning number is a combined estimate: Virginia marginal state rate plus any applicable optional local tax, plus federal plus remaining FICA on the . Use the Virginia tax guide for mechanism detail and the tax calculator with Virginia selected for a stacked-income estimate.

What to check on your end

  • VA state on pay stub.
  • VA wage and tax boxes.
  • Federal Box 1 and .
  • VA with total income for filing year.
  • Federal gap vs .
  • Move date if part-year VA.
  • Calculator output vs pay stub.
1 more checklist item
  • Virginia Tax pub for current year.

Assuming Virginia flat withholding on vest equals your final VA tax

is a payroll estimate. Progressive VA brackets plus stacked federal tax mean supplemental may leave a year-end gap at high income.

What to pull from your files

  • VA pay stub.
  • VA boxes.
  • confirmation.
  • VA estimated tax if made.
  • Move docs if part-year.

Reston employee with cliff vest

Illustration only, not your tax situation.

Priya, VA resident, hits a $42,000 cliff on $195,000 salary. VA and federal supplemental apply. Priya's combined marginal rates exceed flat supplemental . Priya uses tax calculator with Virginia and gap calculator before the .

Questions people ask

What is the RSU tax rate in Virginia?
No flat rate — VA progressive state tax plus federal plus FICA on , based on total income and current Virginia Tax guidance.
Are RSUs taxed in Virginia?
Yes for typical VA residents on VA-sourced wages.
Virginia vs Texas RSU tax rate?
Virginia taxes wages at progressive rates. Texas has no state wage income tax for typical residents.
Does Northern Virginia add local tax on RSU vests?
Some VA localities impose optional local income taxes on residents. Many NoVA addresses have no local wage tax — confirm on Virginia Tax publications for your filing year.
Moved from Virginia to Florida?
VA may tax pre-move connected income. Post-move FL vests avoid FL state income tax for typical residents.

When a CPA is worth it

  • Part-year VA resident with large equity income.
  • DMV cross-border with conflicting state boxes.
  • Employer withheld wrong state on VA resident .
  • Multi-state remote work allocation.

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.

Virginia progressive income tax on vest wages; confirm current VA rates.

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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.

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