RSUs: the income at vesting and the gain when you sell
When restricted stock units vest and settle in shares, their value is taxed as wages. That same value becomes your cost basis, so a later sale is only taxed on the change in price after settlement.
Your shares. A clearer tax picture.
Separate the income from vesting from the gain or loss when you sell. Explore one settlement lot at a time.
The example, step by step.
The situation
- 1,000 RSUs settle on February 15, 2026 at $150 a share
- All 1,000 shares sold on March 1, 2027 at $185, with $20 of fees
What the calculator finds
- Wage income at settlement: $150,000, reported with your 2026 wages.
- Cost basis: $150 a share, $150,000 in total.
- Sale: $184,980 after fees, a long-term capital gain of $34,980. Shares sold on or after February 16, 2027 count as long-term.
The value reported as wages becomes your share basis. Using zero basis on a later sale can count that same value again.
What goes in.
What comes out.
Enter the settlement date, the gross number of shares settled (including shares withheld for tax) and the value per share at settlement. That value is your wage income and your basis.
Optionally add a sale: date, shares, price and fees. The calculator finds the gain or loss against that basis and the holding period, which starts the day after settlement.
It covers standard RSUs that are fully vested and settle in shares at vesting, without deferred settlement or a section 83(i) election.
What it does not cover.
- Tax withheld at vesting is not your final tax bill.
- It does not calculate the tax itself, state tax or wash sales. Model lots with different settlement dates separately.
- Check that your broker’s reported basis matches the wage amount; a zero or missing basis can count the same income twice.
Questions
How are RSUs taxed?
At two moments. The value at settlement is ordinary wage income, and any change in price after that is a capital gain or loss when you sell. Because the wage value becomes your basis, the same dollars are not meant to be taxed twice.
Why does my 1099-B show a zero or missing cost basis?
Brokers often report RSU basis as zero or leave it out, because the income was already reported in your wages. Using zero basis would tax the settlement value a second time; the basis is generally the value included in your wages.
When does an RSU sale become long-term?
When the shares are held more than one year after settlement. In the example, shares settled on February 15, 2026 are long-term if sold on or after February 16, 2027.
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