An Oregon RSU tax calculator shows the gap between the flat 22% federal supplemental rate your employer withholds at vest and what you actually owe once Oregon's progressive tax (top rate 9.9%) and your real federal bracket apply. Run your numbers below to see your shortfall.
Calculate RSU Withholding
Estimate your RSU tax withholding and net proceeds after vesting.
Try Calculator →Open the Oregon RSU tax calculator with these inputs prefilled →
How Oregon taxes your RSU vest
When your RSUs vest, the shares' fair market value is ordinary W-2 income — federally and in Oregon (IRS Publication 525). Your employer reports that value, withholds at a flat supplemental rate, and hands you the rest. Oregon is a progressive-bracket state with a top marginal rate of 9.9%, so a large vest can push the Oregon-attributable income toward that top rate even though the default withholding is much flatter.
The two numbers that matter on every vest:
- Federal supplemental withholding rate: 22% on RSU income up to $1M (IRS Publication 15). Above $1M, the rate jumps to 37%.
- Oregon supplemental withholding rate: Oregon lets employers withhold a flat 8% on supplemental wages (bonuses, RSU vesting) paid separately from regular pay (OAR 150-316-0257). But Oregon's top marginal rate is 9.9%, so that 8% default under-withholds for high earners — you owe the difference at filing time.
If your marginal bracket is higher than the supplemental rate, your employer is under-withholding — and you owe the difference at filing time.
Worked examples (Oregon, 2025)
These three scenarios use the EquityTax calculator with the inputs shown. The federal and FICA figures come straight from the calculator engine; the Oregon state-tax amounts are computed from Oregon's 2025 progressive brackets and the optional flat 8% supplemental withholding rate (OAR 150-316-0257).
Example 1 — junior IC, single filer
Inputs: $118K salary, single filer, 100 RSUs vesting at $80 FMV ($8,000 vest).
Result:
- Federal withholding: $1,760
- Oregon withholding: $640 (the optional flat 8% supplemental rate)
- Estimated total tax on the vest: federal + FICA = $2,510, plus $700 of Oregon tax (the vest sits in Oregon's 8.75% bracket).
- Shortfall vs default withholding: $138 federal + $60 Oregon (8% withheld vs 8.75% owed) = $198 total.
Run this scenario in the calculator →
Example 2 — mid IC, married filing jointly
Inputs: $205K salary, married filing jointly, 400 RSUs vesting at $115 FMV ($46,000 vest).
Result:
- Federal withholding: $10,120
- Oregon withholding: $3,680 (the optional flat 8% supplemental rate)
- Estimated total tax on the vest: federal + FICA = $11,052, plus $4,025 of Oregon tax (the vest sits in Oregon's 8.75% bracket).
- Shortfall vs default withholding: $256 federal + $345 Oregon (8% withheld vs 8.75% owed) = $601 total.
Run this scenario in the calculator →
Example 3 — senior IC, married filing jointly
Inputs: $360K salary, married filing jointly, 1,500 RSUs vesting at $210 FMV ($315,000 vest).
Result:
- Federal withholding: $69,300
- Oregon withholding: $25,200 (the optional flat 8% supplemental rate)
- Estimated total tax on the vest: federal + FICA = $107,188, plus $31,185 of Oregon tax (the vest reaches Oregon's 9.9% top bracket).
- Shortfall vs default withholding: $30,485.50 federal + $5,985 Oregon (8% withheld vs 9.9% owed) = $36,470.50 total, plus a $2,133.99 estimated federal underpayment penalty.
Run this scenario in the calculator →
Why employer withholding usually isn't enough in Oregon
The 22% federal supplemental rate is a floor, not your marginal rate. In Example 3, the senior IC's RSU income lands in the 35% federal bracket, so the flat 22% leaves a $30,485.50 federal gap before Oregon is even considered — large enough to trigger a $2,133.99 estimated underpayment penalty. On top of that, Oregon's optional 8% supplemental rate sits below its 9.9% top bracket, leaving a $5,985 Oregon gap on the same vest. The result is a two-sided gap: federal under-withholding from a flat rate that ignores your bracket, and an Oregon state bill the 8% supplemental withholding does not cover.
The fix is straightforward and depends on the size of the gap:
- Adjust your W-4 so your paycheck withholding picks up the difference across the year (IRS W-4 instructions).
- Make a quarterly estimated payment if the shortfall is concentrated around a single vest date.
- Sell-to-cover at vest — if your broker offers it, this can absorb the federal gap automatically; the Oregon state gap usually still needs a separate payment.
The 22% federal supplemental rate is a default — not your actual marginal rate. If your total income (salary + RSU) puts you in the 32%, 35%, or 37% bracket, the federal under-withholding alone can exceed the Oregon shortfall.
How the Oregon RSU tax calculator handles state liability
The calculator applies the federal supplemental and FICA layers exactly, using your filing status and the 2025 federal brackets. For Oregon specifically, it uses Oregon's actual 2025 progressive brackets (4.75% / 6.75% / 8.75% / 9.9%) and the optional flat 8% supplemental withholding rate — so the per-scenario Oregon dollar amounts above are computed, not placeholders. The federal, FICA, and Oregon numbers you see are final.
Open the calculator with your inputs →
Frequently asked questions
How much tax do you pay on RSUs in Oregon?
At vest, your employer withholds 22% federally on RSU income up to $1M (IRS Publication 15) plus FICA, then Oregon income tax on top. Oregon's tax is progressive with a top marginal rate of 9.9%, so your true rate depends on your total income — and the flat 22% federal default is often too low.
Why is my Oregon RSU withholding too low?
Employers withhold federal RSU income at a flat 22% supplemental rate, but your marginal bracket may be 24%, 32%, 35%, or 37%. In our senior-IC example, that left a $30,485.50 federal gap. Oregon's progressive 9.9% top rate adds a separate state gap that default withholding rarely covers.
Do I owe an underpayment penalty on my RSUs?
You can, if the shortfall is large enough and you didn't make estimated payments. The calculator flags this: in Example 3 the $30,485.50 federal shortfall produced a $2,133.99 estimated underpayment penalty. Adjusting your W-4 or paying quarterly estimates avoids it.
Sources
- IRS Publication 525, Taxable and Nontaxable Income — RSU treatment, fair-market-value rules.
- IRS Publication 15, Employer's Tax Guide — federal supplemental withholding rate (22% / 37%).
- Oregon Revenue Department — state top marginal rate (9.9%) and equity-comp guidance.
- EquityTax Oregon RSU Calculator (internal engine, last verified 2026-05-09).
Tax Disclaimer: This content is for educational purposes only. Always consult with a licensed tax professional or certified public accountant before making financial decisions related to equity compensation, tax planning, or investment strategies.
Estimate only — not financial or tax advice. Consult a qualified CPA before making decisions about exercising stock options, selling equity, or other financial moves.