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In addition to that, RSUs are taxed at around 50% before you receive them and another 20% of the value it gained from when you received it to when you sold it.
by vjeux 7y ago
In addition to that, RSUs are taxed at around 50% before you receive them and another 20% of the value it gained from when you received it to when you sold it. So the numbers in your bank account look less impressive than the ones on paper.
- compumike 7y agoYes, but to be fair to RSUs, this is no worse than having some additional ordinary income. The 50% on receipt number comes from your marginal federal tax bracket plus state -- same as if the dollar value were additional gross (pre-tax) income. The 20% on growth number (potentially 25-30% including state) is what you'd pay on capital gains -- same as if you'd taken this extra income as cash and invested it in anything.
- Thorrez 7y agoRSUs are taxed the same as salary. If you don't like them gaining value, then sell them as soon as they vest, and that's 20% tax of $0.