RSU Tax Guide · 2026
RSU Tax Withheld but Still Owe — Why It Happens & How to Reconcile
Your RSUs vested, tax was withheld, but you still owe more at year-end? This is a common scenario in Ireland. Withholding is an estimate based on your payslip period, not your final year position. Use our Equity Management Calculator to model your full-year position.
Why Withholding Doesn't Match Your Final Tax
Payroll withholding on RSU vesting is calculated using your cumulative tax credits and SRCOP up to that pay period. At year-end, your full income picture may shift the calculation:
Tax Credits Change Mid-Year
If your tax credits were updated mid-year (marriage, rent credit, health expenses), payroll may have used the wrong cumulative credit amount for the RSU vest period.
Multiple Income Sources
If you have bonus, commission, or other income in addition to RSUs and salary, the combined effect can push you into higher USC (8%) or PAYE (40%) bands than payroll estimated.
Benefits-in-Kind (BIK)
Company car, health insurance, or other BIK increases your taxable income. If BIK was not fully reflected in the vesting-period payroll, the year-end position will differ.
Post-Vesting Share Sales
If you sold shares after vesting at a price above the vest price, the gain is subject to CGT at 33%. This is a completely separate tax from the income tax withheld at vesting.
The 52% Marginal Rate on RSUs
In Ireland, the maximum marginal rate on employment income is 52%, composed of:
| Tax | Rate | Applies When |
|---|---|---|
| PAYE (Income Tax) | 40% | Income above SRCOP (€44k single) |
| USC | 8% | Income above €70,044 |
| PRSI | 4% | All earnings (employee rate) |
| Total | 52% | Applies to RSU income if already in top bands |
📊 Example: €15,000 RSU Vest
Scenario: Salary €100k + RSU €15k vest
RSU value at vest: €15,000
PAYE at 40%: -€6,000
USC at 8%: -€1,200
PRSI at 4%: -€600
Tax on RSU: -€7,800
You keep: €7,200 (48%)
If withholding was at 40% only
Withheld by payroll: €6,000 (40%)
Actual tax due: €7,800 (52%)
Still owe: €1,800 at year-end
Post-Vesting Share Sales & CGT
When RSUs vest, you are taxed on the market value at vest date as income. If you hold the shares and sell them later at a higher price, the gain is subject to Capital Gains Tax at 33%:
| Event | Value | Tax |
|---|---|---|
| RSUs vest (100 shares @ €50) | €5,000 | Income tax at up to 52% |
| Tax cost basis for CGT | €5,000 | Set at vest price |
| Later sale (100 shares @ €70) | €7,000 | — |
| Gain | €2,000 | CGT at 33% = €660 |
4-Step Reconciliation Checklist
Confirm vest values
Get your vest statement from your equity platform (e.g., E-Trade, Schwab, Fidelity). Note the vest date, number of shares, and vest price per share. Total value = shares × vest price.
Confirm payroll withholding
Check your payslip for the month of vesting. Look for the RSU addition to gross pay and the PAYE, USC, and PRSI deducted. Your payslip may show this as a separate line item under "Share Awards" or "Equity."
Check your full-year position
Use the Equity Management Calculator to model your total income including salary, bonus, RSUs, and BIK. The calculator shows whether your year-end tax position matches — or differs from — what payroll withheld.
Account for post-vesting sales
If you sold shares, calculate the gain (sale price − vest price × shares). Report this on your Form 11/Form 12. The first €1,270 of gains may be exempt under the CGT annual exemption.