Vesting RSUs? Your employer's withholding almost never matches what you actually owe. See the real number — federal, provincial, and the gap between them — in under a minute.
At Vesting
Your RSU Vesting Event
Not sure of your marginal rate? Add this vesting's value to your other income for the year and check the current CRA federal and provincial brackets — or just book a call and we'll work it out together.
Optional — If You Hold, Then Sell Later
Selling After Vesting
Leave this equal to the vesting price above if you plan to sell immediately — there's no capital gain to report in that case.
*Important: this is an estimate for illustration only and is not tax advice. Your actual tax depends on your full income picture, deductions, and CRA rules current at filing time. Please confirm with a CPA or advisor before making decisions.
Total Tax Owed on Vesting
$0
on $0 added to your employment income
Federal Tax
$0
Provincial Tax
$0
⚠ The Withholding Gap
Your employer likely withheld (est.): $0Your actual tax owed: $0
You may owe an extra $0 at tax time
Based on the CRA's standard lump-sum withholding method (10% / 20% / 30% depending on the size of the vesting). Your actual payroll withholding may differ — check your pay stub.
Net Value After Income Tax
$0
If You Sell Later
Capital Gains on the Sale
Capital gain (or loss): $0Taxable portion (50%): $0Estimated capital gains tax: $0
Net proceeds from the sale: $0
Estimates for illustration purposes only, based on the rates and figures you entered. Not a substitute for advice from a CPA or your CRA My Account.
Next Step
Don't Let RSU Vesting Catch You Off Guard
Advisor can help you plan around the withholding gap, decide whether to hold or sell, and fit your equity comp into your broader tax and investment strategy.
How RSUs Are Taxed in Canada
Restricted Stock Units (RSUs) are taxed differently than stock options — a distinction that trips up a lot of people. There's no special deduction waiting for you at vesting. Here's what actually happens:
At vesting, the full fair market value of the shares that vest is added to your employment income for the year, just like a cash bonus. It shows up on your T4. There's no 50% stock option deduction for RSUs — that break is generally reserved for eligible stock options, not RSUs.
Your employer is required to withhold tax at vesting, but they typically use a simplified "lump-sum" or "bonus" method rather than your actual marginal rate — which is exactly why the amount withheld often doesn't match what you actually owe.
After vesting, the shares are yours. Any change in value between the vesting date and the day you eventually sell is a capital gain or loss, with only 50% of that gain taxable — a completely separate calculation from the income tax you paid at vesting.
How to Use This Calculator
Enter the number of RSUs vesting — the total units vesting on this specific date, not your whole grant.
Enter the fair market value per share at vesting — usually the closing price on the vesting date, available from your employer's equity plan portal.
Choose your province and enter your federal and provincial marginal tax rates — the combined rate you'd pay on the next dollar of income, given your total income for the year including this vesting.
Optionally, enter a later sale price if you plan to hold the shares rather than sell immediately — this shows the separate capital gains tax on any growth after vesting.
Click Calculate to see your total tax owed, the likely gap between that and what your employer withheld, and your net after-tax value.
Formula Breakdown
Vesting Value (added to employment income): Number of RSUs × Fair Market Value per Share
Federal Tax: Vesting Value × Federal Marginal Rate
Provincial Tax: Vesting Value × Provincial Marginal Rate
Total Tax on Vesting: Federal Tax + Provincial Tax
Estimated Employer Withholding: Vesting Value × CRA lump-sum rate (10% up to $5,000, 20% for $5,001–$15,000, 30% above $15,000)
The Gap: Total Tax on Vesting − Estimated Withholding
Capital Gain on Later Sale (if applicable): (Sale Price − Vesting FMV) × Number of RSUs, with 50% of that gain taxable at your marginal rate
Example Calculation
Say 500 RSUs vest at $60/share — a $30,000 addition to your employment income. At a combined 38% marginal rate (26% federal + 12% provincial), that's $11,400 in income tax owed. Your employer likely withheld only 30% under the CRA lump-sum method — about $9,000 — leaving roughly a $2,400 gap to cover when you file. If you later sell those same shares at $75, the $15 per-share growth ($7,500 total) is a capital gain, only 50% of which — $3,750 — is taxable, at an estimated $1,425 in capital gains tax.
Important Notes
CPP (and possibly EI) may also apply to RSU income up to the annual maximums set by the CRA each year — this calculator focuses on income and capital gains tax, so check your pay stub or CRA account for the exact contribution amounts on this vesting.
Withholding methods vary by employer and payroll provider — the estimate above uses the CRA's standard lump-sum schedule as a reasonable approximation, not a guarantee of what was actually withheld on your paycheque.
Private (CCPC) company RSUs can have different timing and deferral rules than publicly traded company RSUs — if you hold shares in a private Canadian-controlled company, the timing of taxation may not follow the standard vesting-date rule.
The province you select is for your reference only — this calculator uses the marginal rates you enter directly, since provincial brackets and surtaxes change from year to year.
"The number people miss isn't the tax on vesting — it's the gap between what got withheld and what's actually owed. That gap is what turns into a surprise bill next April." — Advisor
None of this is tax advice — it's a starting point to help you ask better questions. For a plan that accounts for your full income, other equity, and timing of a sale, book a free discovery call.
Turn This Estimate Into an Actual Plan
Every vesting event is a decision point — hold, sell, or something in between. Let's build a strategy around your equity comp, not just a single calculation.