Is 22% withholding on Amazon RSUs enough?

Often not for higher earners. If your total income falls in the 32% bracket or above, 22% withholding can leave a balance due. Project the year early and adjust withholding or estimated payments with your CPA.

Should I sell Amazon RSUs as soon as they vest?

Selling at vest usually adds little tax because your basis equals the vest-day price. Holding is an investment choice: would you buy this much AMZN with cash today? We help set a target and a selling plan.

Does Amazon offer an ESPP?

No. Amazon does not currently offer an employee stock purchase plan, so savings beyond RSUs come from the 401(k), after-tax 401(k) contributions, and taxable investing.

Do I pay Washington capital gains tax on Amazon RSUs?

Not at vest: vesting income is wage income, and Washington has no state income tax. The state capital gains tax can apply when you later sell shares held more than a year at a gain above the annual deduction.

Financial Planning for Amazon Employees

Q: Why does my Amazon tax bill jump in year three?

Back-weighted vesting puts most of the grant’s value into years three and four, while withholding often stays at the flat 22% supplemental rate. If your total income lands in a higher bracket, the difference is due when you file.

Q: What happens to unvested RSUs if I leave Amazon?

They are generally forfeited when employment ends. Check your grant agreement, and map the next vest dates before setting a departure date.

Talk Through Your Amazon Equity

Plan the tax year before it arrives

Amazon's vesting is commonly reported to be weighted toward years three and four, so stock income, and the tax bill with it, can jump just as the sign-on cash ends. Withholding often stays at a flat rate while your real bracket climbs.

We help Amazon households plan the tax year before it arrives, then decide what to keep. Taxes are one of the few variables planning can influence, and we coordinate every step with your CPA.

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Decisions we help with

The Year 3 tax jump and underwithholding
Estimated payments in heavy vesting years
Which shares to sell, and when
Replacing sign-on bonus cash in the household budget
Reducing AMZN concentration without an avoidable tax bill
Retirement contributions and giving to offset high-income years
Leaving before a large vest
Layoffs and severance

Frequently asked questions

Why does my Amazon tax bill jump in year three?

Back-weighted vesting puts more stock income in later years, while withholding often stays at a flat supplemental rate below your actual bracket.

How do I avoid a surprise tax bill in April?

Project the year's vesting income early, then adjust withholding or make estimated payments with your CPA.

What happens to unvested RSUs if I leave Amazon?

They are generally forfeited. Check your grant agreement.

Same board, same pieces, same rules. Planning is how the pieces work together. How we think about planning

Haris Ansari leads Ascent's work with technology professionals. More on planning for tech professionals