You get an annual bonus and RSU vests in the same tax year — each paycheck looked fine on its own, but filing season tells a different story.
Start here
What you need before using this
- Expected bonus amount and timing.
- schedule and estimated values.
- Base salary and filing status.
- Prior-year return for bracket context.
Illustrative stacking only — run tools with your actual comp.
Why this happens
Flat on bonus and does not see your full-year stack.
Marginal tax applies to the next dollar of income — vests sit on top of salary and bonus.
FICA and state tax also apply to each wage event.
Multiple supplemental events in one year multiply gap risk.
What to check
- Total estimated wages: salary + bonus + vests.
- rate on each event vs marginal estimate.
- Annual income estimator for total value.
- W-4 or estimated payments to close projected gap.
Assuming each 22% withheld event means you are done
What to check in your documents
- Bonus pay stub and confirmations.
- Year-to-date wages mid-year if available.
- Employer supplemental rate notices.
Example scenario (hypothetical)
Illustration only, not your tax situation.
Questions people ask
- Are RSU vests taxed like bonus?
- Both are generally wage income. Similar supplemental may apply, but vests also deliver shares and may use .
- Which calculator for bonus plus RSU?
- Run tax calculator per and annual income estimator for total value; add salary and bonus mentally or in a spreadsheet. gap calculator helps compare flat rates to marginal.
- Should I change W-4 before bonus or vest?
- Many people update W-4 after the first large event when a gap appears — or proactively after running estimates in Q1.
When to get help from a tax pro
- Bonus, , and exercise all in one year.
- You are in or NIIT territory.
- Spouse also has equity comp events.
Related calculators
- 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.
- Annual RSU Income Estimator
Total your expected RSU ordinary income for the year. a starting point before running detailed tax estimates.
- RSU Tax Calculator
Model federal and state taxes on your RSU vest, compare withholding to estimated tax, and see what you may keep.
Related pages
- RSUs and Marginal Tax Rates
RSU vest income stacks on salary. your marginal rate on that vest slice may be higher than flat withholding.
- RSU Withholding vs Actual Tax
Why flat supplemental withholding on RSU vests often differs from your actual tax when salary, bonus, and vests stack in one year.
- RSU Tax Planning for High Earners
Large vests can push you into higher brackets. planning ahead beats scrambling when the vest hits payroll.
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.
Stacked supplemental wage events and marginal brackets.
- IRS Publication 15 (Circular E) — Supplemental wages
Internal Revenue Service · Official
Section 7 describes supplemental wage withholding, including the optional 22% flat rate and 37% rate above $1 million of supplemental wages in a calendar year.
- IRS Publication 525 — Taxable and Nontaxable Income
Internal Revenue Service · Official
Covers compensation income from stock-based pay, including restricted property under section 83.
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.