Stock Option Tax Calculator (ISO & NSO)
Estimate the after-tax value of your stock options. This calculator helps you understand taxes when exercising incentive stock options (ISO) or non-qualified stock options (NSO).
Exercise cost: $
Taxable income: $
Estimated tax: $
After-tax value: $
Effective tax rate: %
How Stock Option Taxes Work
When you exercise stock options, the difference between the fair market value and the exercise price is often taxable income.
NSOs are taxed as ordinary income at exercise, while ISOs may receive preferential treatment if holding requirements are met. This calculator estimates taxes at exercise only.
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Stock Option Tax FAQ
Why is my stock option tax so high?
Stock option exercises can generate large amounts of taxable income in a single year, often triggering higher marginal tax rates.
Should I exercise stock options before leaving my job?
Many plans require options to be exercised shortly after leaving. Tax consequences vary, so careful planning is recommended.
Does this calculator include AMT?
No. Alternative Minimum Tax (AMT) is complex and not included in this estimate, especially for ISOs.