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

Talk to us
Illustrative estimate, not tax advice.

RSUs are taxed as wages when they vest. This uses the 2026 federal brackets and standard deduction (Rev. Proc. 2025-32), California’s 2025 rate schedules (the latest published) with the 1% tax on taxable income over $1M, Social Security on the first $184,500 of wages, Medicare with the 0.9% additional tax, and California SDI at 1.3%. Withholding assumes 22% federal on supplemental wages (RSUs and bonuses) up to $1M and 37% above, plus California’s 10.23% rate for stock. It assumes one earner, wages as the only income, and no itemized deductions. The deduction range takes land at 20% of the price, 35% to 40% of the rest as short-life property, and a home bought and rented by year end. Short-term rental and personal-use rules apply, and depreciation is generally recaptured when you sell, so this mostly defers tax. Talk to your CPA before acting.