Stock Options Tax Calculator
Calculate tax on exercising stock options.
Compare ISO and NSO tax treatment to see your tax bill and net profit.
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Stock Options Tax Estimate
Stock options let you buy company shares at a fixed price (the grant/strike price).
Two types of stock options:
ISO (Incentive Stock Options):
- No regular income tax at exercise
- Spread may trigger Alternative Minimum Tax (AMT)
- If held 1+ year after exercise AND 2+ years after grant: long-term capital gains rate (0%, 15%, or 20%)
- If sold early (“disqualifying disposition”): taxed as ordinary income
NSO (Non-Qualified Stock Options):
- Spread at exercise is taxed as ordinary income immediately
- Subject to income tax + payroll taxes
- Further gains after exercise taxed as capital gains
Key formulas:
- Spread = Current price - Strike price
- Total spread = Spread x Number of shares
- NSO tax at exercise = Total spread x Your tax rate
Stock option taxation is complex. Consult a tax advisor for your specific situation.