If 100 RSUs vest, how many do I keep?
At settlement, full FMV is taxed as ordinary income. Most companies sell enough of your shares at vest to cover the tax bill.
Try it: RSU withholding
At settlement, the company sells some of your vested shares to cover the tax bill. You keep what's left.
65 kept
35 sold for tax
Gross income at settlementcount × price per share at vest$5,000
Tax withheld (approx.)$1,750
Shares delivered to you65
- Gross income: 100 × $50 = $5,000
- Withholding rate: 35%
- Shares sold to cover taxes: ~35
- Shares delivered to you: ~65
Actual withholding rates vary by employer and your tax situation.
Quick check