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Embedded engineer · TX

Embedded engineer equity comp in Texas

How embedded engineers earning rsu, psus at tesla-style employers should plan around Texas's no-income-tax regime.

Typical comp shape

Embedded engineers usually earn rsu, psus at tesla-style employers. Common employers include Apple, Tesla, SpaceX, Nvidia. Tesla and SpaceX embedded roles carry long-vesting PSUs tied to milestones, which delays and lumps tax recognition.

What Texas changes

Texas has no wage income tax, which is structurally favorable for embedded 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 embedded engineer in Texas, 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 Texas for a high-tax state, time it around vesting.

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