V VestedGrant
Software engineer · VA

Software engineer equity comp in Virginia

How software engineers earning rsu, sometimes + espp should plan around Virginia's 5.75% top marginal rate.

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 Virginia changes

In Virginia, every RSU vest, NSO exercise, and ESPP purchase carries 5.75% state tax on top of federal. For a senior software engineer with $300k+ of equity income, the state layer routinely adds $25-45k to the annual bill.

Planning cadence

For a software engineer in Virginia, 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).

Related