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Company guide · SNOW

Snowflake RSU tax guide (SNOW)

Federal supplemental withholding, state tax, and trailing nexus rules on Snowflake RSU vestings for tech employees.

About Snowflake equity

Snowflake (SNOW, HQ MT) grants RSUs to employees. No ESPP. with a quarterly vesting cadence.

Federal withholding at vest

Snowflake applies the standard federal supplemental withholding: 22% flat on RSU ordinary income, rising to 37% once year-to-date supplemental wages exceed $1M. Both rates are below the top bracket, which means high earners typically owe additional federal tax at filing.

State withholding

Because Snowflake is headquartered in MT, your state withholding defaults to that state unless your work location is recorded differently. If you moved during the grant-to-vest window, the state that taxes each tranche is determined by workday allocation, not by your HQ.

Quarterly estimates

Tech earners with meaningful Snowflake RSU income often need quarterly estimated payments in addition to payroll withholding. The safe-harbor rule (110% of prior-year tax, for AGI over $150k) usually determines the minimum you need to send per quarter to avoid an underpayment penalty.

What to do next

Other Snowflake guides