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Estimate vest tax

Equity taxes when you leave a company

Job changes stop new vesting but past vests still need correct reporting. and options may expire soon.

Rates and rules change. Check the tax year and last-reviewed date on each page, then confirm against IRS or state guidance before you file.

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Leaving usually stops future , but it does not erase tax on what already vested, and it can start a short clock to exercise vested options. Your final should reflect any vests through your last day, and unexercised options may expire sooner than you expect.

Why this happens

Unvested are typically forfeited when you leave, unless your plan says otherwise.

Vests that occurred while employed are already wage income and still need correct reporting.

Vested options often have a limited post-termination exercise window before they expire.

Exercising after leaving still triggers tax on the spread.

What to check

  • What happens to your unvested under the plan.
  • Whether any occurs on or before your last day.
  • Your post-termination option exercise deadline.
  • What your final should include.
  • State sourcing if you have since moved.

Common mistake

Letting vested options expire after leaving, or assuming no tax applies once you are gone. Past vests still need reporting, and exercising after leaving is still taxable.

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: someone leaves with vested options and a short exercise window noted in the plan. They must decide whether to exercise (and fund the tax) within that window or forfeit the options.

When to get help from a tax pro

  • You have vested options with a closing window.
  • You are unsure how unvested are treated.
  • You moved states after leaving.
  • Your final looks incomplete.

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.