RSU Vesting 4-Year 1-Year Cliff Calculator 2027

Calculate Restricted Stock Unit (RSU) vesting schedule 2027 — standard 4-year vest with 1-year cliff. See what vests when, tax implications, leaving-before-cliff impact.

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Standard RSU Vesting Schedule

Most common: 4-year vest, 1-year cliff. 25% vests at 12-month mark (cliff), remaining 75% vests monthly/quarterly over years 2-4. Leave before cliff = lose 100%.

RSU Tax Treatment

Vesting event = taxable income at vest day price. Employer withholds shares (usually 22% federal default) to cover tax. Holding period for capital gains starts at vest, not grant.

RSU vs Stock Options

RSUs: free shares, taxable at vest. Options: right to BUY at strike price, taxable at exercise (ISO) or vest (NSO). RSUs simpler but less upside if stock falls below strike.

Refresh Grants

After initial 4-year grant, top employees get annual refreshes (e.g., 25-50% of original grant each year). Builds rolling vest schedule. Comp negotiation should include refresh size.

Source: levels.fyi compensation analysis, irs.gov Publication 525 RSU taxation. Last updated: May 2026.