How are RSUs (Restricted Stock Units) taxed?

RSUs are taxed as ordinary income at vesting. The taxable amount equals the fair market value of shares on the vesting date multiplied by the number of shares. Your employer typically withholds 22% federal tax (37% over $1M) plus applicable state taxes.

What is the difference between ISO and NSO stock options?

ISOs (Incentive Stock Options) receive preferential tax treatment if holding period requirements are met, with potential for long-term capital gains. NSOs (Non-Qualified Stock Options) are taxed as ordinary income at exercise on the spread between exercise price and fair market value.

What is the California Tail Tax?

The California Tail Tax refers to California's ability to tax equity compensation that was granted while you were a California resident, even after you relocate to another state. California uses a source-based allocation formula: California-sourced income = Total income × (CA service days ÷ Total service days).

Should I make an 83(b) election?

An 83(b) election can be beneficial when you expect significant appreciation in your company's stock. By electing within 30 days of grant, you pay tax on the current value rather than the potentially higher value at vesting. This converts future gains to long-term capital gains if held for 12+ months.

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RSU

Restricted Stock Units

RSU Tax Guide: Complete Guide to Restricted Stock Units Taxation

Expert guide on RSU taxation for tech professionals. Covers vesting date taxation, withholding rates, capital gains treatment, double-trigger RSUs, and why Section 83(b) elections don't apply to RSUs.

Section 83(b)

Restricted Stock

Section 83(b) Election: A Strategic Tax Decision Guide

Expert guide on Section 83(b) elections for restricted stock. Covers 30-day deadline, income calculation, tax savings, filing requirements, and strategic considerations for tech professionals.

IFICI

NHR 2.0

Portugal NHR 2.0 vs Equity: IFICI and Startup Tax Guide

Complete guide to Portugal's IFICI regime (NHR 2.0) for equity compensation. Covers 20% flat rate, Article 43-C 14% startup regime, US-Portugal tax treaty, and eligibility.

83(b)

Expat

Section 83(b) Election for Expats: The $100K Strategic Decision

Expert guide on filing IRS Section 83(b) elections as a non-US person. Includes 30-day deadline mechanics, TIN/ITIN procedures, AMT implications, and why FEIE won't save you.

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Tax Rules by Country

Understand equity taxation in your current or future jurisdiction.

🇫🇷

France

Complete guide to stock options and RSU taxation in France. Understand French tax rates, social security, and planning strategies for equity compensation.

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Germany

Guide to stock options and RSU taxation in Germany. Understand income tax, solidarity surcharge, and social security on equity compensation.

🇵🇹

Portugal

Complete guide to stock options and RSU taxation in Portugal under the NHR regime and standard tax rules.

🇦🇪

United Arab Emirates

Guide to stock options and RSU taxation in the UAE. Understand zero income tax benefits and corporate tax implications.

🌍

United Kingdom

Guide to stock options and RSU taxation in the UK. Understand income tax, National Insurance, and capital gains treatment for equity compensation.

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Frequently Asked Questions

Quick answers to common equity compensation tax questions.

How are RSUs (Restricted Stock Units) taxed?: RSUs are taxed as ordinary income at vesting. The taxable amount equals the fair market value of shares on the vesting date multiplied by the number of shares. Your employer typically withholds 22% federal tax (37% over $1M) plus applicable state taxes.
What is the difference between ISO and NSO stock options?: ISOs (Incentive Stock Options) receive preferential tax treatment if holding period requirements are met, with potential for long-term capital gains. NSOs (Non-Qualified Stock Options) are taxed as ordinary income at exercise on the spread between exercise price and fair market value.
What is the California Tail Tax?: The California Tail Tax refers to California's ability to tax equity compensation that was granted while you were a California resident, even after you relocate to another state. California uses a source-based allocation formula: California-sourced income = Total income × (CA service days ÷ Total service days).
Should I make an 83(b) election?: An 83(b) election can be beneficial when you expect significant appreciation in your company's stock. By electing within 30 days of grant, you pay tax on the current value rather than the potentially higher value at vesting. This converts future gains to long-term capital gains if held for 12+ months.

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