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Tax

How are RSUs taxed?

Quick Answer

RSUs are taxed as ordinary income at vest — the full FMV of shares received is W-2 wages. Employer withholds 22% federal (often too low for high earners). Any future gain or loss after vest is capital gain on a separate clock.

RSU tax treatment at grant, vest, and sale.
Warren Team
Updated April 26, 2026
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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