Total Compensation Tax Calculator 2026 — Salary, Bonus, RSUs & Benefits

RSUs are taxed as ordinary income at vesting — the full fair market value of shares received is added to your W-2. Your employer withholds taxes, typically using the supplemental flat rate of 22% (37% above $1M), though the actual tax owed may be higher if you're in the 32–37% brackets. After vesting, any future appreciation or decline is taxed as capital gains (short-term if held less than 1 year from vesting, long-term if held longer). Many tech employees face a significant "withholding gap" where 22% is withheld but they owe 35–37%.

Bonuses can be taxed using one of two methods: (1) Percentage/Supplemental Method — the IRS flat supplemental rate of 22% for amounts up to $1 million (37% above $1 million). This is the most common method for large employers. (2) Aggregate Method — the bonus is added to your regular paycheck for the pay period, and taxes are calculated on the combined total. The aggregate method often results in higher withholding. In both cases, the bonus is ultimately taxed at your marginal rate when you file your return — the withholding method only affects timing, not total tax.

An Employee Stock Purchase Plan (ESPP) typically allows employees to purchase company stock at a 15% discount (capped at 85% of FMV). The discount is the immediate, guaranteed return. Tax treatment depends on disposition type: Qualifying disposition (held 2+ years from grant, 1+ year from purchase) — discount is taxed as ordinary income; additional gain is long-term capital gains. Disqualifying disposition (sold earlier) — the entire spread (discount + appreciation) at sale is ordinary income. ESPPs are often one of the most efficient compensation forms due to the immediate discount.

Total compensation comparison requires calculating the after-tax value of each component: Base salary (taxed at marginal rate), Annual bonus (same as salary, typically), RSUs (ordinary income at vesting — use marginal rate), 401(k) match (pre-tax value × 1/(1−tax rate) to compare correctly), HSA contribution (triple tax advantage — multiply by ~1.3x for tax equivalence), Health insurance (taxable value if company pays premium vs paying yourself). Don't compare gross-to-gross: a $200K salary at a company with great benefits and lower cost-of-living state may beat $230K in a high-tax city with poor benefits.

No — employer 401(k) matches are not included in your current taxable income. The match is contributed pre-tax directly to your 401(k), so neither the match nor your employee contributions are subject to income tax when contributed. Both will be taxed as ordinary income when you withdraw in retirement. However, employer matches may have a vesting schedule (e.g., 3-year cliff or 6-year graded vesting) — unvested match is forfeited if you leave. When comparing job offers, calculate the after-tax value of the match by considering what you'd need to earn in taxable salary to have the same after-tax amount.