ISO and NSO Tax Calculator

ISO and NSO Tax Calculator. An option holder enters option type, shares, strike price, exercise FMV, sale price, and ordinary and AMT rates to estimate compensation and gain components. Use it before exercising or selling employer stock options.

Inputs

Note

Investments & Capital Gains inputs

NSO (1) or ISO (0)

Range: 0–1

Enter the count or numeric assumption in the unit stated by the label. Professional example: 1. Edit this value for your own facts.

Option shares

Range: 0–100,000,000

Enter the count or numeric assumption in the unit stated by the label. Professional example: 100. Edit this value for your own facts.

Exercise price ($/share)

Range: 0–100,000,000 $/share

Enter a non-negative US-dollar amount for the stated tax year; use the same tax year and jurisdiction for all related inputs. Professional example: 20. Edit this value for your own facts.

FMV at exercise ($/share)

Range: 0–100,000,000 $/share

Enter a non-negative US-dollar amount for the stated tax year; use the same tax year and jurisdiction for all related inputs. Professional example: 50. Edit this value for your own facts.

Sale price ($/share)

Range: 0–100,000,000 $/share

Enter a non-negative US-dollar amount for the stated tax year; use the same tax year and jurisdiction for all related inputs. Professional example: 70. Edit this value for your own facts.

Ordinary-income rate (%)

Range: 0–100 %

Enter a percentage as a whole number, such as 22 for 22%, not 0.22. Professional example: 22. Edit this value for your own facts.

AMT rate assumption (%)

Range: 0–100 %

Enter a percentage as a whole number, such as 22 for 22%, not 0.22. Professional example: 26. Edit this value for your own facts.

Result

Alternative minimum tax (AMT)

780.00

Bargain Element

3,000.00

Estimate

Capital Gain After Compensation

2,000.00

Iso Amt Adjustment

3,000.00

Nso Ordinary Income

0.00

Ordinary Tax

0.00

How to interpret this result

ISO and NSO Tax Calculator starts with a professional planning example for this scenario. Edit the inputs to replace the example with your own facts; the displayed outputs update from the formula.

Applicability and limits

This is a simplified option-event estimate. It does not determine ISO qualifying disposition, AMT exemption, disqualifying disposition, payroll withholding, state tax, or plan-specific terms.

Calculation basis

Only the named inputs and displayed formula relationships are used. Rates, limits, thresholds, eligibility flags, dates, and jurisdiction assumptions are not silently looked up unless a verified dataset is listed.

Formula

Calculation logic

Formula definitions and substituted values.

Bargain Element

Option shares * max(FMV at exercise ($/share) - Exercise price ($/share), 0)

Option shares * max(FMV at exercise ($/share) - Exercise price ($/share), 0)

Nso Ordinary Income

Bargain Element * NSO (1) or ISO (0)

Bargain Element * NSO (1) or ISO (0)

Iso Amt Adjustment

Bargain Element * (1 - NSO (1) or ISO (0))

Bargain Element * (1 - NSO (1) or ISO (0))

Sale Proceeds

Option shares * Sale price ($/share)

Option shares * Sale price ($/share)

Capital Gain After Compensation

Sale Proceeds - (Bargain Element + Option shares * Exercise price ($/share))

Sale Proceeds - (Bargain Element + Option shares * Exercise price ($/share))

Ordinary Tax

Nso Ordinary Income * Ordinary-income rate (%) / 100

Nso Ordinary Income * Ordinary-income rate (%) / 100

Alternative minimum tax (AMT)

Iso Amt Adjustment * AMT rate assumption (%) / 100

Iso Amt Adjustment * AMT rate assumption (%) / 100

How to interpret this result

ISO and NSO Tax Calculator starts with a professional planning example for this scenario. Edit the inputs to replace the example with your own facts; the displayed outputs update from the formula.

ISO and NSO Tax Calculator starts with a professional planning example for this scenario. Edit the inputs to replace the example with your own facts; the displayed outputs update from the formula.

Applicability and limits

This is a simplified option-event estimate. It does not determine ISO qualifying disposition, AMT exemption, disqualifying disposition, payroll withholding, state tax, or plan-specific terms.

This is a simplified option-event estimate. It does not determine ISO qualifying disposition, AMT exemption, disqualifying disposition, payroll withholding, state tax, or plan-specific terms.

Calculation basis

Only the named inputs and displayed formula relationships are used. Rates, limits, thresholds, eligibility flags, dates, and jurisdiction assumptions are not silently looked up unless a verified dataset is listed.

What to check

An option holder enters option type, shares, strike price, exercise FMV, sale price, and ordinary and AMT rates to estimate compensation and gain components.
Use it before exercising or selling employer stock options.
This is a simplified option-event estimate. It does not determine ISO qualifying disposition, AMT exemption, disqualifying disposition, payroll withholding, state tax, or plan-specific terms.