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RSU tax calculator

RSU taxes for public company employees

Public company RSUs follow a familiar W-2 plus 1099-B pattern — master basis adjustments early.

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.

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In plain terms

At a public company, follow a predictable rhythm: wages at on your , then a when you sell. The skill worth building early is fixing , because brokers often report $0 and make your sale look like a much bigger gain than it was.

How the tax works

Public-company on a set schedule, and the value is reported as wages.

When you sell, the broker reports the sale on a , frequently with missing basis.

Your basis is generally the value already taxed as wages, so a basis adjustment is usually needed.

Predictable cadence makes planning easier than at a startup, but the basis issue is constant.

What to check on your end

  • Your schedule and the value reported as wages.
  • Each sale's reported basis vs: your records.
  • Whether or holding fits your situation.
  • Which forms arrive in January and February.
  • Your concentration in company stock.

Common mistake

Filing from the without adjusting basis. A $0 basis overstates your gain, this is where public-company employees most often think they were taxed twice.

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: an employee sells vested shares for $9,000. The shows $0 basis, implying a $9,000 gain, but the shares vested at $8,800. Adjusting basis leaves about $200 of gain, the real result.

When a CPA is worth it

  • Your and do not reconcile after adjusting basis.
  • You sold across many lots.
  • You have a large concentrated position.
  • You moved states during the year.

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.

Employee equity tax planning context — not role-specific tax law.

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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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