GOLDEN HANDCUFFS // FYI 2026.RSU
STATE PRESET PRIVATE • $42 Colorado (CO)

Stripe RSU Taxes in Colorado (2026)

2026 RSU tax estimate for Stripe employees living in Colorado. Compares default brokerage withholding (4.40% state + 22% federal) against actual marginal tax brackets.

Preset Loaded: Stripe (Private) • Quarterly vesting (historically double-trigger RSUs modified via company-sponsored liquidity and tender offer settlements)
Brokerage: Carta / Morgan Stanley at Work
Vest & Comp Inputs2026 RATES
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Tax Filing Status
IRC § 3402(g) GAPEstimated April Tax Shortfall
$14,106

Your employer's brokerage will automatically sell shares at flat statutory rates (28.69% combined), leaving a $14,106 unpaid tax gap when your W-2 is filed in April.

Incremental Shares to Sell336 SHARES Liquidate manually upon vest to cover estimated federal & state gap
Net Shares Kept After Full Tax2159 / 3500 Retained value: $90,678
Total Gross Vest$147,0003500 shares @ $42/share
Brokerage Sell-to-Cover$42,1731005 shares liquidated automatically (28.69%)
True Federal Liability$46,446 Marginal 35.00% bracket on total comp $337,000
State Tax (CO)$6,468 Statutory withheld: $6,468 (4.40%)
2026 FICA Withholding$3,365 SS ($184.5k cap): $0 • Med: $3,365
Actual True Total Tax$56,278 Effective true tax rate: 38.28%

2026 Stripe Compensation Benchmarks in Colorado

Below is the 2026 tax withholding and April shortfall breakdown across sample Stripe engineering levels for a Single filer in Colorado (at a reference share price of $42/share via Carta / Morgan Stanley at Work):

Stripe in Colorado (CO) — 2026 Withholding vs. Actual Tax by Level
Level & Role Base + Annual Vest CO + Fed Withheld True Total Tax Net April Shortfall Extra Shares to Sell
L2
Software Engineer (L2)
$175,000 base
+$92,400 (2200 sh)
 $26,929 $32,537 $5,608 134 shares
L3
Senior Software Engineer (L3)
$205,000 base
+$159,600 (3800 sh)
 $45,885 $63,279 $17,394 415 shares
L4
Staff Software Engineer (L4)
$240,000 base
+$294,000 (7000 sh)
 $84,525 $121,673 $37,148 885 shares

Colorado Supplemental Tax Regulations for Stripe RSUs

Colorado levies a flat 4.40% individual income tax rate based on federal taxable income, plus a 0.45% Colorado FAMLI (Family and Medical Leave Insurance) payroll premium up to the Social Security wage cap ($184,500). Because employers withhold state tax at the exact 4.40% flat statutory rate, your state-level RSU withholding closely matches your actual Colorado liability.

Colorado Bracket Architecture: 4.40% flat state income tax rate across all income brackets.

Colorado Safe Harbor & Estimated Tax Vouchers (Colorado Form DR 0104EP (Individual Estimated Income Tax))

Colorado requires quarterly estimated payments on Form DR 0104EP if net Colorado tax liability exceeds withholding by $1,000 or more (safe harbor: 70% of current-year or 100% of prior-year Colorado tax; 110% if federal AGI > $150,000).

Multi-State Relocation & Nonresident Sourcing Rules in Colorado

Colorado allocates nonresident and part-year resident equity compensation based on the percentage of business days worked inside Colorado during the vesting period.

Employer Stock Plan Specifics: Stripe (Carta / Morgan Stanley at Work)

Stripe has pioneered ongoing employee liquidity for a late-stage private company by waiving liquidity triggers on specific RSU cohorts and executing regular company-sponsored tender offers to cover tax obligations and provide secondary liquidity. However, when Stripe net-settles shares at vest or executes a tender offer, payroll withholding still defaults to the 22% federal statutory rate—leaving a 10% to 15% cash tax gap on illiquid private equity.

Withholding Election Guidance: Unlike public company employees who can log into Schwab or Fidelity any day and sell extra shares on the open market to pay the IRS in April, Stripe employees hold private shares that cannot be traded outside designated tender offer windows. Therefore, when a tender offer window opens on Carta / Morgan Stanley at Work, you must sell enough secondary shares (or set aside cash from your base salary) to cover the 13%–15% federal and state underwithholding gap.

2026 Statutory Parameters Quick Reference

2026 Federal & Colorado Statutory RSU Tax Parameters (Private)
Statutory Parameter 2026 Rate / Rule
Federal Supplemental Withholding Rate 22.00% (≤ $1M) • 37.00% (> $1M)
Colorado Supplemental Withholding 4.40%
Colorado Top Marginal Tax Bracket 4.40%
Colorado Estimated Tax Voucher Colorado Form DR 0104EP (Individual Estimated Income Tax)
2026 Social Security Limit $184,500 (6.2% FICA Cap)
Medicare & Additional Medicare 1.45% Uncapped + 0.9% over $200k/$250k
Stripe Stock Plan Brokerage Carta / Morgan Stanley at Work

Other States for Stripe (Private)