2026 tax year · New York
RSU tax in New York
A $60,000 vest costs $3,750 in New York tax on top of the federal bill. And the federal share withheld is $2,970 short.
What a $60,000 vest actually costs in New York
A single filer already earning $180,000 in salary. The vest stacks on top of that, so it fills the highest brackets rather than starting at the bottom:
| Withheld by your employer at 22.0% | $13,200 |
| Federal tax the vest actually costs | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| New York income tax on the vest | $3,750 |
| Total still to find | $6,720 |
The withholding rate is flat, 22.0% below $1 million of supplemental pay. And takes no account of your salary. That is why the gap grows the more you earn.
The gap widens with salary
| Salary | Withheld | Actually owed | Shortfall | New York tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $3,510 |
| $160,000 | $13,200 | $14,570 | $1,370 | $3,744 |
| $260,000 | $13,200 | $20,630 | $7,430 | $3,750 |
How New York treats a vest
New York taxes a vest as ordinary income like any other wages, adding $3,750 on top of the federal bill for $60,000 of vesting stock.
New York is one of the states that sources equity income aggressively. If any part of the vesting period was worked here, New York will claim its share of the vest even if you had moved away by the time the shares actually landed. Days worked in each state / total days in vesting period x RSU income = each state's allocation
New York specifics that change the number
New York also has local income tax that the estimate above does not model, new York City (3.876%); yonkers (1.477% resident, 0.50% non-resident). Add it separately for where you live and work.
New York runs a state disability insurance program: varies. NY DBL (statutory disability) mandatory for employees. SE not required.
What the same vest costs around New York
Total income of $240,000 in the states New York borders:
| State | Its tax | vs New York |
|---|---|---|
| Pennsylvania | $7,368 | −$6,556 |
| Massachusetts | $12,000 | −$1,924 |
| New Jersey | $13,164 | −$760 |
| Connecticut | $13,350 | −$574 |
| Vermont | $15,784 | +$1,861 |
- Pennsylvania would take $6,556 less, $7,368 against New York's $13,924.
- Massachusetts would take $1,924 less, $12,000 against New York's $13,924.
- New Jersey would take $760 less, $13,164 against New York's $13,924.
- Connecticut would take $574 less, $13,350 against New York's $13,924.
- Vermont would take $1,861 more, $15,784 against New York's $13,924.
RSU questions in New York
Should I sell at vest?
Selling immediately raises the cash for the $6,720 you still owe and leaves no capital gain, because the sale price equals the price you were already taxed on. Holding turns it into an investment decision, any further gain is a capital gain, and any fall is a loss you take on shares you were already taxed on at the higher value.
I moved to New York mid-vest, who taxes it?
Both states, split by workdays. The income is allocated across the vesting period, not assigned to wherever you happened to live on the vesting date. The state you left can still claim its share, and California, New York and Massachusetts pursue it hardest.