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Definition

RSU (Restricted Stock Unit)

Company shares granted to an employee that vest over time and are taxed as ordinary income when they vest.

Written by Jere Salmisto·Reviewed by CalcFi Editorial·Last verified: 2026-05-13
TL;DR

RSU (Restricted Stock Unit) is Company shares granted to an employee that vest over time and are taxed as ordinary income when they vest. Used in tax.

What Is RSU (Restricted Stock Unit)?

Restricted Stock Units are a promise of future shares contingent on continued employment or performance. On the vest date, the fair market value is added to your W-2 income and taxed at ordinary rates; later sales trigger capital gains or losses on the price change since vesting.

Related Terms

Vesting
The process by which an employee gains ownership of employer-contributed retirement benefits.
Employee Stock Option
The right to purchase company stock at a predetermined price within a specified time.
ESPP (Employee Stock Purchase Plan)
A workplace plan that lets you buy company stock at a discount (often 15%) through after-tax payroll deductions.

Related Calculators

Stock Options & RSU Calculator→
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