Individuals
IPO tax estimator · California

Congrats on the IPO. Estimate your taxes.

Years of work just turned into life-changing money. RSUs are taxed the day they vest, before you sell a share. Here is roughly what you will owe, and what you can do about it.

Learn more: the IPO tax bill nobody warns you about →

Value of the shares on the day they vest
Filing status · California resident
Estimated total tax for 2026
$2.76M

About 53% of your $5.25M in wages. Your RSUs alone add about $2.67M.

Federal income tax
$1,893,000
California income tax
$668,000
Social Security, Medicare, CA SDI
$201,000
Likely still due when you fileYour employer typically withholds about $2.39M when the shares vest. The rest is on you, often while the lockup keeps you from selling. You may need estimated payments during the year to avoid penalties.
$279,000
You have options

Transfer part of that bill into real estate.

A second home two to four hours out, run as a short-term rental, can turn part of the tax bill into an asset you own.

  1. Buy a short-term rental. Average guest stays of seven days or less, and you materially participate in running it.
  2. Run a cost segregation study. It moves parts of the home into 5- and 15-year property.
  3. Deduct those parts in year one. With 100% bonus depreciation, against the income your RSUs created. Personal use over 14 days, or 10% of the days rented, can disallow the loss.
Estimated year-one deduction
$253,000–$288,000
Federal tax it could offset this year
$93,000–$95,000

A directional range, not a study figure. Federal only: California doesn’t follow bonus depreciation. A loss above the federal excess business loss limit carries forward.

Transfer your tax bill into real estate.

Learn more on our blog

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