RSUs and ESPPs look great on paper. After federal tax, California tax, and payroll deductions, the reality is often quite different — and most tech employees don't know their real after-tax number until it's too late to plan around it.
Use the calculators below to see your vesting schedule, net proceeds, concentrated stock exposure, and whether holding your shares makes financial sense given your total portfolio.
| Year | Shares Vesting | Price at Vest | Gross Value | Tax Withheld | Net Proceeds | Cumulative Net |
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RSUs and ESPPs are two of the most valuable benefits tech employers offer — and two of the most misunderstood. The tax treatment alone can make a difference of hundreds of thousands of dollars over a career. Here are the things that matter most.
When RSUs vest, the full market value is taxed as ordinary income — at rates as high as 50%+ in California. Many employees are surprised to find that 40–50% of their vested shares are withheld for taxes before they see a dollar.
When you eventually sell your RSU shares, your cost basis is the fair market value at vesting — not zero. Only gains above that price are subject to capital gains tax, which can be favorable if you hold 12+ months.
Every RSU you hold after vesting is a bet on your employer's stock with after-tax dollars. Most financial advisors would never recommend putting 20–40% of a client's net worth in a single stock — but that's exactly what many tech employees do by not selling.
As a fee-only fiduciary with deep experience in Silicon Valley equity compensation, Hooman Altafi helps tech employees build a plan around RSUs, ESPPs, and concentrated stock — with no commission incentives, just objective advice.
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