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RSU Multi-State Allocator

Worked in multiple US states between RSU grant and vest? Allocate W-2 income to each state using the IRS-aligned workday-fraction method.

New to multi-state RSU tax? See our RSU Multi-State Allocation Explained guide.

Allocation

StateWorkdaysFractionW-2 incomeEst. state tax
CA20076.3%$76,336$3,538
TX6223.7%$23,664n/a

Next: trailing-state liability + relocation planning

After allocating vest income, check sale-time tax and pre-move planning.

RSU multi-state allocation FAQs

Why can more than one state tax the same RSU vest?

RSU compensation is generally wage income when it vests. A former work state may source part of that compensation to services performed there during the grant-to-vest period, while the residence state may tax all income and then allow a credit for qualifying tax paid to the other state.

What is the RSU workday allocation fraction?

The common method divides workdays performed in a state during the grant-to-vest service period by total workdays in that period, then multiplies the vest-date wage income by that fraction. State rules and award terms can require adjustments.

Does moving before vest eliminate tax in the former state?

Not necessarily. States including California and New York can continue to tax the portion of vest income earned from services performed there before the move. Residency change affects the allocation but does not erase prior-state sourcing.

Sources

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