# RSU and Stock Option Tax Help for Canadian Tech Workers > An AI CFO for Canadian tech workers: tax on RSUs, stock options and ESPPs, the shortfall at vest, US-listed shares and where to put the cash. Source: https://trykosh.com/for/tech-workers Kosh for tech workers # A CFO for tech workers paid in salary, RSUs and options Your pay comes in three or four forms, vests on someone else's schedule and is often priced in US dollars. Kosh reads your statements, tracks what vested and what it did to your tax, and plans the next move. ## What gets in the way ### The vest that isn't fully taxed RSUs are employment income when they vest. Employers withhold on them, but not always at your full marginal rate, so a big vest year can leave a balance owing in April. ### Cost base confusion Your cost base for RSU shares is their value at vest, not zero. Get it wrong and you pay tax twice on the same money when you sell. ### Too much in one stock Salary, bonus and savings all tied to the same company is concentration risk most people would never choose on purpose. ### US brokerages and US dollars Shares held at a US plan administrator, priced in US dollars, with a Canadian return to file. Exchange rates and foreign property reporting add friction. ### A high marginal rate on everything else Once vests push you into the top brackets, every other decision, from RRSP room to where you hold interest-paying savings, matters more. ## What Kosh does about it ### Tracks every vest and sale Upload brokerage and plan statements. Kosh records each vest's value, the tax withheld and your cost base, so sales are reported once and correctly. ### Estimates the April bill early Kosh adds vests and bonuses to your salary and works out federal and provincial tax at your real marginal rate, so a shortfall shows up in the fall, not in April. ### Shows your concentration How much of your net worth sits in your employer's stock, and what a planned selling schedule would change. ### Uses registered room first RRSP contributions are worth the most at a high marginal rate; Kosh shows what yours saves and how much room you have. ### Explains options and ESPPs When the stock option deduction applies, how an employee share purchase plan discount is taxed, and how each differs from RSUs. ### Reminds before deadlines Vest dates, the RRSP deadline, instalment dates if the CRA asks for them, and tax-filing day. ## Free tools for tech workers [Free tool**Income tax calculator**Work out your 2026 federal and provincial income tax, CPP and EI, and what you keep, in any province or territory. Add self-employment income, capital gains and RRSP contributions to see how each one changes the bill.](/tools/income-tax-calculator)[Free tool**Marginal tax rate calculator**See how much of your next dollar goes to tax in your province, on salary and interest, capital gains and dividends. It's the number that decides what an RRSP contribution saves and what a raise is worth.](/tools/marginal-tax-rate-calculator)[Free tool**Capital gains tax calculator**Enter what you sold something for, what you paid and your other income to see the tax on the gain in your province. Half of a capital gain is taxable.](/tools/capital-gains-tax-calculator)[Free tool**RRSP tax refund calculator**Find out how much tax an RRSP contribution saves you this year, and what it really costs once the refund comes back.](/tools/rrsp-calculator)[Free tool**TFSA contribution room calculator**Add up every TFSA limit you've been eligible for since 2009, subtract what you've put in and add back past withdrawals to see the room you have today.](/tools/tfsa-contribution-room-calculator) ## A CFO for tech workers. Upload a statement and Kosh maps your money, estimates your federal and provincial tax and tells you the one thing to fix first. Free to start. [Start free](/signup?via=for-tech-workers) ## How are RSUs taxed in Canada? When RSUs vest, their fair market value is employment income, taxed like salary and shown on your T4. That value becomes your cost base. If you sell later, only the change since vest is a capital gain or loss, and half of a capital gain is taxable. Here's what a vest does at the margin. A $180,000 salary in British Columbia pays about $49,060 in income tax in 2026. Add $40,000 of RSUs and the bill rises to about $67,180: roughly **$18,110** more, or about 45% of the vest. If less than that was withheld on the shares, you owe the difference. See [stock options and RSU tax](/learn/stock-options-and-rsu-tax-canada). ## Stock options and the 50% deduction With employee stock options, the benefit is the difference between the share value and your exercise price. For qualifying options you can usually deduct one-half of that benefit, so it's taxed much like a capital gain. For options granted after July 1, 2021 by large employers that aren't Canadian-controlled private corporations, the deduction is limited to $200,000 of options vesting each year. Options from a Canadian-controlled private corporation are generally taxed when you sell the shares, not when you exercise. ## Shares held outside Canada If the total cost of your specified foreign property, which can include shares held at a US plan administrator, is more than $100,000 at any time in the year, you file Form T1135 with your return. The test uses cost, not market value. Kosh flags when you're getting close. [Free tool**Income tax calculator**Work out your 2026 federal and provincial income tax, CPP and EI, and what you keep, in any province or territory. Add self-employment income, capital gains and RRSP contributions to see how each one changes the bill.](/tools/income-tax-calculator)[Free tool**Marginal tax rate calculator**See how much of your next dollar goes to tax in your province, on salary and interest, capital gains and dividends. It's the number that decides what an RRSP contribution saves and what a raise is worth.](/tools/marginal-tax-rate-calculator)[Free tool**Capital gains tax calculator**Enter what you sold something for, what you paid and your other income to see the tax on the gain in your province. Half of a capital gain is taxable.](/tools/capital-gains-tax-calculator)[Free tool**RRSP tax refund calculator**Find out how much tax an RRSP contribution saves you this year, and what it really costs once the refund comes back.](/tools/rrsp-calculator) ## Frequently asked questions How are RSUs taxed in Canada? The fair market value of RSUs when they vest is employment income, taxed at your marginal rate and reported on your T4. That value becomes your cost base, and any later rise or fall before you sell is a capital gain or loss, half of which is taxable. Why do I owe tax after my RSUs vested? Withholding on RSU income can be lower than your true marginal rate. If your salary plus vests puts you in a higher bracket, the tax withheld can fall short and the difference is due when you file. Do I pay tax twice on RSUs when I sell? You shouldn't. The value at vest was already taxed as employment income, so it is your cost base. Only the gain or loss after vest is reported when you sell. Reporting a zero cost base is a common and expensive mistake. Do I need to file Form T1135 for my US employer shares? If the total cost of your specified foreign property, which can include shares held in an account outside Canada, was more than $100,000 at any time in the year, you generally must file Form T1135. Check the CRA's guidance for your case. Does Kosh tell me when to sell my company stock? No. Kosh is not registered with a securities regulator and doesn't recommend specific securities. It shows your concentration, the tax effect of selling and how a selling plan would change your numbers, so you can decide or take it to an advisor. ## Sources - [CRA: Employee security options](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/security-options.html) - [CRA: Questions and answers about Form T1135](https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1135.html) - [Finance Canada: Capital gains inclusion rate change](https://www.canada.ca/en/department-finance/news/2025/01/government-of-canada-announces-deferral-in-implementation-of-change-to-capital-gains-inclusion-rate.html) General information for planning, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk.