2026 tax year · Virginia
RSU tax in Virginia
A $60,000 vest costs $3,450 in Virginia tax on top of the federal bill. And the federal share withheld is $2,970 short.
What a $60,000 vest actually costs in Virginia
A single filer already earning $180,000 in salary. The vest stacks on top of that, so it fills the highest brackets rather than starting at the bottom:
| Withheld by your employer at 22.0% | $13,200 |
| Federal tax the vest actually costs | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| Virginia income tax on the vest | $3,450 |
| Total still to find | $6,420 |
The withholding rate is flat, 22.0% below $1 million of supplemental pay. And takes no account of your salary. That is why the gap grows the more you earn.
The gap widens with salary
| Salary | Withheld | Actually owed | Shortfall | Virginia tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $3,450 |
| $160,000 | $13,200 | $14,570 | $1,370 | $3,450 |
| $260,000 | $13,200 | $20,630 | $7,430 | $3,450 |
How Virginia treats a vest
Virginia taxes a vest as ordinary income like any other wages, adding $3,450 on top of the federal bill for $60,000 of vesting stock.
If you moved during the vesting period, the income is split between the states you worked in across it: Days worked in each state / total days in vesting period x RSU income = each state's allocation That is worked out day by day, not by where you lived on the vesting date.
What the same vest costs around Virginia
Total income of $240,000 in the states Virginia borders:
| State | Its tax | vs Virginia |
|---|---|---|
| Tennessee | No income tax | −$13,543 |
| Kentucky | $8,400 | −$5,143 |
| North Carolina | $9,576 | −$3,967 |
| West Virginia | $10,195 | −$3,348 |
| Maryland | $12,210 | −$1,333 |
| Washington DC | $18,800 | +$5,258 |
- Tennessee has no income tax at all, so the same work done there costs $13,543 less in state tax than it does in Virginia.
- Kentucky would take $5,143 less, $8,400 against Virginia's $13,543.
- North Carolina would take $3,967 less, $9,576 against Virginia's $13,543.
- West Virginia would take $3,348 less, $10,195 against Virginia's $13,543.
- Maryland would take $1,333 less, $12,210 against Virginia's $13,543.
- Washington DC would take $5,258 more, $18,800 against Virginia's $13,543.
RSU questions in Virginia
Should I sell at vest?
Selling immediately raises the cash for the $6,420 you still owe and leaves no capital gain, because the sale price equals the price you were already taxed on. Holding turns it into an investment decision, any further gain is a capital gain, and any fall is a loss you take on shares you were already taxed on at the higher value.
I moved to Virginia mid-vest, who taxes it?
Both states, split by workdays. The income is allocated across the vesting period, not assigned to wherever you happened to live on the vesting date. The state you left can still claim its share, and California, New York and Massachusetts pursue it hardest.