Nvidia RSU Taxes in Texas (2026)

2026 Nvidia Compensation Benchmarks in Texas

Below is the 2026 tax withholding and April shortfall breakdown across sample Nvidia engineering levels for a Single filer in Texas (at a reference share price of $135/share via E*TRADE by Morgan Stanley / Charles Schwab):

Texas Supplemental Tax Regulations for Nvidia RSUs

Texas constitutionally prohibits personal state income tax on W-2 wages, supplemental RSU vests, and capital gains. Consequently, your brokerage sell-to-cover transaction withholds exclusively for Federal Supplemental Tax (22% up to $1M; 37% over $1M) and FICA (Social Security up to $184,500 and uncapped Medicare).

Texas Bracket Architecture: 0.00% state personal income tax and 0.00% state capital gains tax.

Texas Safe Harbor & Estimated Tax Vouchers (None (Federal Form 1040-ES only))

No state estimated tax filings exist in Texas. Tech employees must focus strictly on IRS Form 1040-ES safe-harbor thresholds (110% of prior-year federal tax or 90% of current-year federal tax).

Multi-State Relocation & Nonresident Sourcing Rules in Texas

Texas does not tax inbound or outbound equity grants. However, tech workers who transfer to Austin or Dallas from California or New York with unvested RSUs must track their exact relocation date, as their former state will claim source-income tax on the portion of each RSU tranche earned prior to the move.

Employer Stock Plan Specifics: Nvidia (E*TRADE by Morgan Stanley / Charles Schwab)

Due to Nvidia’s multi-year stock appreciation and split-adjusted share counts, unvested initial grants and annual focal refreshers routinely generate large quarterly vest valuations. Under IRC § 3402(g), your brokerage withholds only 22% federal tax on the first $1,000,000 of supplemental wages each calendar year, before jumping to 37% on every dollar above $1,000,000. That leaves the first $1,000,000 of NVDA vests underwithheld by up to $150,000 federally.

Withholding Election Guidance: Nvidia employees should review their supplemental withholding elections in E*TRADE / Schwab or via Nvidia Payroll prior to the March, June, September, and December vest dates. Even if your annual vests exceed $1,000,000 and trigger the mandatory 37% tier on the excess, the initial $1,000,000 tranche still creates an ~13%–15% federal gap (and a ~3.1% California gap above the 10.23% flat rate) unless you make quarterly estimated payments.

2026 Statutory Parameters Quick Reference