UK RSU Vesting Tax Calculator 2026/27
UK RSU vesting tax for 2026/27: Income Tax and NI on the market value at vesting, worked on top of a salary, plus CGT on later growth and NI transfer rules.
RSUs are taxed as employment income when they vest, through PAYE with National Insurance. CGT applies later only to growth after vesting.
RSU vesting tax scenarios
Tax and employee NI caused by the vest, worked as the difference between the year's salary alone and salary plus vest, at England, Wales and Northern Ireland rates for 2026/27. It includes the loss of Personal Allowance above £100,000. NI is worked on an annual basis; payroll calculates it per pay period, so a large vest in one month can be charged differently.
| Scenario | Vesting value | Income Tax | Employee NI | Total | Share of vest | Net to employee |
|---|---|---|---|---|---|---|
| £25k vest on a £35k salary | £25,000 | £6,946 | £1,416 | £8,362 | 33.4% | £16,638 |
| £50k vest on a £60k salary | £50,000 | £22,000 | £1,000 | £23,000 | 46.0% | £27,000 |
| £100k vest on a £80k salary | £100,000 | £47,771 | £2,000 | £49,771 | 49.8% | £50,229 |
| £150k vest on a £150k salary | £150,000 | £67,500 | £3,000 | £70,500 | 47.0% | £79,500 |
| £250k vest on a £200k salary | £250,000 | £112,500 | £5,000 | £117,500 | 47.0% | £132,500 |
Frequently asked questions
When is an RSU taxed?
When the shares are delivered at vesting, on their market value then. HMRC treats an RSU that gives a right to acquire shares as a securities option under ITEPA 2003 Part 7 Chapter 5 (ERSM20192). Where the shares are readily convertible assets, as listed shares usually are, the employer runs the amount through PAYE with Class 1 NI. If PAYE could not be deducted and you do not make it good within 90 days after the end of the tax year, the unpaid tax is itself taxed as further earnings (ITEPA s.222).
Should I settle RSU tax by sell-to-cover or cash?
Under sell-to-cover, enough of the vested shares are sold straight away to fund the PAYE and NI, and you keep the rest. Paying in cash lets you keep every share but needs the money up front. The tax is the same either way; the choice only decides how many shares you are left holding.
How is CGT worked out when I sell vested RSU shares?
Your base cost is broadly the market value at vesting that was taxed as income, so only growth after vesting is a gain. For 2026/27 the CGT annual exempt amount is £3,000, and gains are taxed at 18% within your unused basic-rate band and 24% above it.
Can my employer make me pay its NI on share awards?
An employer can transfer its secondary Class 1 NI (15% for 2026/27) on share-based income to you, by agreement or by a joint election in a form HMRC has approved (SSCBA 1992 Sch 1 paras 3A and 3B). The NI you take on is relieved against the amount charged to Income Tax on the award (ITEPA 2003 s.481).