Typical comp shape
Distinguished engineers usually earn large rsu + psu grants, sometimes options. Common employers include Alphabet, Microsoft, IBM. Total equity often rivals VP packages, so 10b5-1 plans and concentration hedging become central planning tools.
What Tennessee changes
Tennessee has no wage income tax, which is structurally favorable for distinguished engineers 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 distinguished engineer in Tennessee, 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 Tennessee for a high-tax state, time it around vesting.