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GOOGL · TX

Alphabet (GOOGL) RSU tax in Texas

How Texas's no-state-tax regime interacts with Alphabet's monthly RSU vesting cadence for employees who live or work in Texas.

Alphabet vesting in Texas

Alphabet runs a monthly RSU vesting schedule. Formerly cliff-then-monthly; front-loaded grants common for senior hires. For Texas residents, each vest is a taxable event: federal supplemental withholding at 22% up to $1M YTD and 37% above, with no state withholding (Texas does not tax wage income), plus Medicare, plus Social Security up to the annual wage base.

The withholding gap

A senior Alphabet engineer earning $300k base plus $400k RSU in Texas sits at a combined marginal rate near 35-37%. Federal supplemental withholds only 22% on the RSU portion. The gap shows up at April filing unless you cover it with quarterly estimates or W-4 additional withholding.

Texas-specific planning moves

Texas has no state income tax, so the tax question on Alphabet RSU sales is purely federal. Compare federal LTCG (15-20%) vs ordinary (up to 37%).

Moving in or out

If you plan to move during an active $Alphabet vesting schedule, trailing-nexus rules apply. Texas has no state income tax to source, so a move in is straightforward; a move out depends on your destination state's rules. Document your move date, work location per pay period, and any remote-work arrangements.

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