V VestedGrant
Software engineer · TN

Software engineer equity comp in Tennessee

How software engineers earning rsu, sometimes + espp should plan around Tennessee's no-income-tax regime.

Typical comp shape

Software engineers usually earn rsu, sometimes + espp. Common employers include Alphabet, Meta, Stripe, Amazon. Largest single audience; broadly tiered RSU grants by level.

What Tennessee changes

Tennessee has no wage income tax, which is structurally favorable for software 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 software 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.

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