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ESPP Tax Calculator

Model ESPP tax basics: purchase discount, holding periods, and what may show up as wages vs capital gain.

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An employee stock purchase plan () lets you buy company stock at a discount. The discount and any gain are taxed depending on how long you hold the shares, part can be (often shown on your ) and part . Holding periods decide the split.

Planning estimate

Educational estimate only. Whether your ESPP sale is qualifying or disqualifying depends on your plan and holding-period dates, which change the tax treatment. Confirm with your plan documents and a tax professional.

We do not pre-fill personal financial values. Estimates appear only after you enter your own numbers.

Enter your details to estimate

Add your equity, income, state, and withholding details to see an educational estimate. No personal financial values are pre-filled.

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Your details

Enter your own numbers below. This is an estimate, not a filing position.

Depends on how long you held from the offering and purchase dates.

Required to estimate

Discounted price you actually paid.

$

Required to estimate

$

Required to estimate

Used for qualifying dispositions with a lookback.

$
$

Required to estimate

Your ESPP discount, often a set plan percentage.

%

Results will appear here once you enter the required details on the left.

Related guides

Why this happens

ESPPs typically let you buy at a discount to market price.

Whether a sale is 'qualifying' or 'disqualifying' depends on holding periods tied to the offering and purchase dates.

Part of the benefit is usually ; the rest is or loss when you sell.

Some of the ordinary-income portion may already appear on your .

What to check

  • Your purchase price, the discount, and the market value at purchase.
  • Your offering date and purchase date for holding-period rules.
  • Whether a sale is qualifying or disqualifying.
  • Whether part of the income already shows on your .
  • Forms you receive, such as Form 3922 for purchases.

Common mistake

Assuming the whole gain is . Part of it is usually , and the holding period determines how much, getting this wrong can over- or under-state your tax.

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: someone buys shares at a discount and sells after a short hold (a disqualifying disposition). The discount portion is generally , while any additional change in price is or loss.

When to get help from a tax pro

  • You are unsure whether your sale is qualifying.
  • Part of the income may already be on your .
  • You sold across multiple purchase periods.
  • You also have or options to coordinate.

Related calculators

Related pages

For learning, not filing

Grants, employers, and states all differ. Use your own documents and a qualified tax professional before you make decisions from this guide.