Calculator
RSU Tax Calculator
Exact tax math on RSU vesting in Canada 2026
Typical scenarios:
Results
- Total T4 income (base + RSU)
- $220,000
- Marginal bracket on RSU income
- 42%
- Tax on RSU without RRSP
- $31,824
- RRSP immediate refund
- $14,200
- Tax on RSU with RRSP
- $17,624
- Net keep on RSU
- $62,376
- Effective tax rate on RSU
- 22%
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Estimation with 2026 federal + AB/BC/ON brackets. Excludes CPP/EI, provincial surtaxes, dividend tax credits. ~95% accuracy for typical scenarios. Not investment or tax advice — for individual setup engage a CPA + Licensed DR (NRD #4575551).
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FAQ
How exactly are RSUs taxed in Canada?
On vesting day, the fair market value of vested shares (in CAD at Bank of Canada rate that day) is added to your T4 employment income and taxed at your marginal rate. An $80K RSU vest can cost you $35-45K in tax depending on province and base salary.
Why does RRSP save so much tax in a vesting year?
Every dollar contributed to RRSP reduces taxable income by that dollar. At $250K total income with $33,810 max RRSP, your top marginal bracket (where RSU income sits) drops. At 47% marginal that's $14,500 immediate refund.
Should I sell vested shares immediately?
Standard recommendation: sell 80% immediately and reinvest in a broad-market ETF (XEQT, VEQT, VFV). Hold 20% if you genuinely believe in the company. Why: your salary already depends on this company — concentration risk creates double exposure.
What about US-listed RSUs?
File Form W-8BEN with your employer (declares Canadian tax residency, not US person — stops 30% US withholding). Convert FMV to CAD at Bank of Canada rate on vesting day. Hold US shares in RRSP (not TFSA) to avoid 15% US dividend withholding (Canada-US treaty exemption is RRSP-only).
How does this calculator compute marginal rate?
Uses federal 2026 brackets (15% / 20.5% / 26% / 29% / 33%) plus provincial brackets for AB (10% flat), BC (5.06-20.5%), Ontario (5.05-13.16%). Doesn't account for: provincial surtaxes (ON), Quebec abatement, CPP/EI deductions, dividend tax credits. ~95% accuracy for typical scenarios.