2026 tax year · Texas
RSU tax in Texas
Texas takes nothing from a vest, but your employer still under-withholds the federal share, $2,970 of it on the example below.
What a $60,000 vest costs in Texas
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 |
| True federal tax on the vest | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| Texas income tax on the vest | none |
| Total still to find | $2,970 |
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 | Owed | Shortfall | Texas tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $0 |
| $160,000 | $13,200 | $14,570 | $1,370 | $0 |
| $260,000 | $13,200 | $20,630 | $7,430 | $0 |
How Texas treats a vest
Texas has no personal income tax, so a vest is a federal-only event here, $16,170 of federal tax on $60,000 of vesting stock, and nothing to the state.
Texas specifics that change the number
Texas is a community property state. In community property states, income earned during marriage is generally owned equally by both spouses. This affects QJV eligibility, MFS filing strategies, and retirement account contribution rules.
Texas does have a business tax, the franchise (margin) tax, but it spares most of the self-employed twice over: sole proprietors are not taxable entities at all, and an LLC owes nothing until annualized revenue passes the no-tax-due threshold, $2,650,000 for the 2026 and 2027 report years. Above it the rate is 0.375% for retail and wholesale, 0.75% for everything else. An LLC under the threshold still files a Public Information Report each year, a form, not a tax.
Selling goods? The state sales tax is 6.25% and local jurisdictions can add up to 2%, so you collect up to 8.25% depending on where the sale lands.
What the same vest costs around Texas
Total income of $240,000 in the states Texas borders:
| State | Its tax | vs Texas |
|---|---|---|
| Louisiana | $6,575 | +$6,575 |
| Arkansas | $9,283 | +$9,283 |
| Oklahoma | $10,765 | +$10,765 |
| New Mexico | $11,770 | +$11,770 |
- Louisiana would take $6,575 more, $6,575 against Texas's $0.
- Arkansas would take $9,283 more, $9,283 against Texas's $0.
- Oklahoma would take $10,765 more, $10,765 against Texas's $0.
- New Mexico would take $11,770 more, $11,770 against Texas's $0.
RSU questions in Texas
Should I sell at vest?
Selling immediately raises the cash for the $2,970 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 Texas 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.