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CTO · WA

CTO equity comp in Washington

How ctos earning founder equity with 83(b), or executive rsu + psu should plan around Washington's no-income-tax regime.

Typical comp shape

CTOs usually earn founder equity with 83(b), or executive rsu + psu. Common employers include Early and growth-stage startups, Public tech companies. Early-stage CTOs often hold large founder ISOs where 83(b) elections and QSBS eligibility dominate tax planning.

What Washington changes

Washington has no wage income tax, which is structurally favorable for ctos with meaningful RSU comp. The savings vs a CA-resident colleague can be $30-60k per year at senior IC levels. That math is why Austin and Seattle are the two top relocation destinations for Bay Area tech workers.

Planning cadence

For a cto in Washington, the three planning windows are: after each RSU vest (withholding check and sell-vs-hold), before any ISO exercise (AMT model at federal only), and in Q4 (estimated tax top-up to clear the safe harbor). A move-out question — if you're considering leaving Washington for a high-tax state, time it around vesting.

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