Tax on £20,000 of RSUs with a £100,000 salary (2026-27)
When £20,000 of RSUs vest on top of a £100,000 salary, you pay £12,000 of Income Tax and £400 of National Insurance on them in 2026-27. That is 62% of their value, leaving £7,600.
| Salary | £100,000 |
| RSU value at vesting | £20,000 |
| Income Tax on the RSUs | £12,000 |
| Employee NI on the RSUs | £400 |
| Total tax on the RSUs | £12,400 |
| Effective rate on the RSUs | 62% |
| RSU value kept | £7,600 |
How this is worked out
RSUs are not one of the four tax-advantaged share schemes, so the shares count as pay: Income Tax and National Insurance are due on their value when they vest. This page assumes your employer deducts both through payroll; otherwise you report them on a Self Assessment return.
The tax on the RSUs is the difference between the tax on £120,000 and the tax on £100,000 alone, so it reflects the band the shares land in. Above £100,000 the Personal Allowance falls by £1 for every £2 of income, which raises the rate on that slice.
Assumptions: England, 2026-27 rates, tax code 1257L, no pension or other income. Selling the shares later can bring Capital Gains Tax on any rise in value after vesting; that is not included here.
Sources: Tax and Employee Share Schemes (GOV.UK), Income Tax rates and allowances (GOV.UK), National Insurance rates and categories (GOV.UK)