GOLDEN HANDCUFFS // FYI 2026.RSU
LOCALIZED JURISDICTION NVDA • $135 Texas (TX)

Nvidia RSU Tax in Texas (2026)

Localized tax model for Nvidia employees residing in Texas. Evaluates statutory brokerage withholding (22% federal only), true marginal liabilities, and safe-harbor quarterly payments.

Preset Loaded: Nvidia (NVDA) • Quarterly vesting following 1-year cliff on initial grant, quarterly on refresher grants
Brokerage: E*TRADE by Morgan Stanley
Vest & Comp Parameters2026.1 PROTOCOL
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Tax Filing Status
IRC § 3402(g) GAPEstimated April Tax Shortfall
$17,156

Your employer's brokerage will automatically sell shares at flat statutory rates (24.35% combined), leaving a $17,156 unpaid tax gap when your W-2 is filed in April.

Incremental Shares to Sell128 SHARES Liquidate manually upon vest to cover estimated federal & state gap
Net Shares Kept After Full Tax779 / 1200 Retained value: $105,165
Total Gross Vest$162,0001200 shares @ $135/share
Brokerage Sell-to-Cover$39,447293 shares liquidated automatically (24.35%)
True Federal Liability$52,796 Marginal 35.00% bracket on total comp $362,000
State Tax (TX)$0 Statutory withheld: $0 (0.00%)
2026 FICA Withholding$3,807 SS ($184.5k cap): $0 • Med: $3,807
Actual True Total Tax$56,603 Effective true tax rate: 34.94%
SPONSORED FIDUCIARY ADVISORYSAFE-HARBOR MATCH
Match with a Fiduciary CPA to calculate quarterly safe-harbor payments

Pair with an Austin tech CPA to model federal safe-harbor withholding and optimize post-vest equity liquidation. Ensure Form 1040-ES and state vouchers protect you against IRS underpayment penalties (IRC § 6654).

Schedule 15-Min Safe Harbor Review

Texas Supplemental Tax Regulations for Nvidia RSUs

Texas levies zero personal income tax on supplemental wages, RSU vests, or capital gains. Your statutory withholding is restricted exclusively to Federal supplemental (22%/37%) and FICA (Medicare/Social Security).

Texas Safe Harbor & Underpayment Penalties

No state safe-harbor required.

Employer Stock Plan Specifics: E*TRADE by Morgan Stanley

Due to Nvidia's dramatic stock appreciation, refresher and historical grants produce astronomical vest values. Once your cumulative supplemental wages cross $1,000,000 within a calendar year, E*TRADE increases withholding from 22% to 37%, creating an intra-year cash flow whipsaw.

When vesting at Nvidia, E*TRADE by Morgan Stanley calculates automatic sell-to-cover withholding using Texas's statutory supplemental rate of 0.00% combined with the federal supplemental rate (22% on up to $1M). Because top earners in Texas reach marginal brackets exceeding these rates, you will face an incremental shortfall on April 15.

Localized CPA & Advisory Referral

Advisor Guidance: Pair with an Austin tech CPA to model federal safe-harbor withholding and optimize post-vest equity liquidation.

Other States for Nvidia (NVDA)