ESPP Calculator
ESPP Calculator
Shares purchased at your plan discount, split into ordinary income and capital gain by qualifying vs. disqualifying disposition.
Shares purchased at your plan discount, split into ordinary income and capital gain by qualifying vs. disqualifying disposition.
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Professional Financial Tools
8/25/2026
The stock price on the first day of the offering period — Box 4 on Form 3922.
The market price on the day shares were actually purchased, before any discount — Box 3 on Form 3922.
Section 423 plans cap this at 15%.
Applies the discount to whichever is lower — the offering-date price or the purchase-date price.
Qualifying requires selling more than 2 years after the offering date AND more than 1 year after the purchase date. Both conditions must be met.
$5,000 contributed ÷ $34 price paid per share.
15% discount off the lower of the offering ($40) and purchase-date ($50) price.
Worth $2,353 at purchase (before any later price movement).
The lesser of your actual gain or the discount computed at the offering price ($40 × 15% × shares). Taxed at your ordinary income rate — see our Income Tax Calculator.
Taxed at long-term capital gains rates (0/15/20%) — see our Capital Gains Tax Calculator for your exact rate.
Sale proceeds of $9,559 minus your $5,000 cost — before splitting into ordinary income and capital gain/loss above.
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Open calculatorThe ESPP Calculator estimates your tax liability using current US federal tax brackets and rules. It provides instant, accurate results and helps you model scenarios so you can make better decisions with your money.
Taxes are the single largest expense for most US households — more than housing, food, or transportation. Understanding your effective tax rate (the percentage of your total income that actually goes to taxes) and marginal rate (the rate on your next dollar earned) is essential for smart planning. This calculator uses brackets published by the Internal Revenue Service.
US federal income tax is progressive — your income is split across brackets and each slice is taxed at its bracket's rate.
For a single filer in tax year 2025:
Your effective rate = total tax ÷ total income. This is almost always much lower than your marginal (top-bracket) rate.
FICA taxes (Social Security + Medicare) add another 7.65% up to the wage base, plus 0.9% Medicare surtax for high earners.
This is an estimate. Your actual return may differ due to itemized deductions, state taxes, AMT, or credits.
A deduction reduces your taxable income — worth your marginal rate. A credit reduces your tax bill dollar-for-dollar. A $1,000 credit is worth exactly $1,000; a $1,000 deduction is worth $220 if you're in the 22% bracket.
For 2025, the standard deduction is $15,000 single, $30,000 married filing jointly. If your total itemized deductions (mortgage interest, state/local taxes capped at $10,000, charity, medical >7.5% of AGI) exceed that, itemize. Otherwise, take standard.
Only the portion of the raise that crosses into a new bracket is taxed at the higher rate. You can never lose money by earning more — a common misconception. You might lose access to certain income-based credits, though.
No. This is an estimate for planning. Actual tax returns involve dozens of edge cases, state taxes, AMT, multi-state residency, and credits this tool can't fully model. For filing, use TurboTax, FreeTaxUSA, or a CPA.