Do you know how much tax you will pay on your RSUs?
If your employer gives you Restricted Stock Units (RSUs), understanding how much you will actually receive after tax can be difficult.
Our free RSU Tax Calculator helps you estimate the Income Tax, employee National Insurance and Capital Gains Tax that could apply to your RSUs. You can enter your salary, other PAYE income, RSU value at vest and expected sale price to see how much you could retain.
This can help you answer an important question: how much of my RSUs will I actually keep after tax?
The result is an illustration rather than a guarantee. The tax treatment of employment-related shares can depend on your circumstances, the terms of your share plan and how and when you sell the shares.
How are RSUs taxed in the UK?
RSUs are a form of employment-related share award. They normally give you the right to receive shares when certain conditions are met, such as completing a period of employment.
When your RSUs vest, the value of the shares you receive will generally be treated as employment income and can be subject to Income Tax and National Insurance. If you later sell the shares for more than their value when they vested, the increase in value may be subject to Capital Gains Tax.
This means there can be two separate tax events: tax on the value of the RSUs when they vest, followed by potential Capital Gains Tax on any subsequent increase in value.
How much tax do I pay when RSUs vest?
The value of your RSUs at vest is generally added to your employment income for tax purposes.
For example, if your RSUs are worth £30,000 when they vest, that amount can be treated as employment income alongside your salary and other taxable earnings.
The amount of Income Tax you pay depends on your overall income and tax position. Employee National Insurance may also apply. Your employer will often collect the tax through payroll, sometimes by selling or withholding some of the shares to cover the amount due.
What happens when I sell my RSUs?
Once your RSUs have vested, any further increase in the value of the shares can potentially be subject to Capital Gains Tax when you sell them. The starting point for calculating the gain will generally reflect the value that has already been subject to employment income tax.
For example, if your shares were worth £20,000 when they vested and you later sell them for £25,000, the £5,000 increase may be relevant for Capital Gains Tax.
If you sell the shares shortly after they vest, there may be little or no capital gain, depending on how the share price has changed.
What is the 60% tax rate on RSUs?
Higher earners can face a particularly high effective marginal tax rate when their income falls between £100,000 and £125,140 because their Personal Allowance is gradually withdrawn.
For the 2026/27 tax year, the standard Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000. This can result in an effective 60% marginal Income Tax rate within this range for taxpayers in England, Wales and Northern Ireland.
An RSU vest can push your total income into this range, potentially increasing the amount of tax you pay.
This is one reason it can be useful to look at your salary, bonus and RSU income together rather than considering the RSUs in isolation.
Should I sell my RSUs when they vest?
You do not necessarily have to sell your shares when they vest. You may choose to sell them and take the money, or continue holding the shares in the hope that they increase in value.
Holding the shares means you remain exposed to movements in your employer’s share price. If the value increases, you could make a capital gain, but the value could also fall.
Selling immediately after vesting can reduce your exposure to future movements in the share price, while holding the shares means taking on additional investment risk.
The right approach depends on your circumstances, financial objectives and how much of your overall wealth is already tied to your employer.
Should I speak to a financial adviser about my RSUs?
An RSU tax calculator can help you understand the potential tax on your share awards, but it cannot account for every aspect of your circumstances.
A regulated financial adviser can help you consider how your RSUs fit alongside your salary, pension, investments and wider financial plans. A tax adviser may also be able to help with more complex tax issues, particularly if you have international income, multiple share awards or other sources of income. Before deciding whether to sell or hold your shares, it can be useful to consider not just the potential tax, but also the investment risk, concentration of your wealth and how the decision fits into your wider financial plans.
If you would like help assessing your options, you can use the Trusted Advisor adviser matching service to find a regulated financial adviser suited to your needs. Alternatively, email our team at hello@trusted-advisor.co.uk and we can help you understand the next steps.