Your stock grant
Models restricted stock you own from grant (a founder purchase, or options exercised early into unvested stock). Standard options and RSUs do not qualify. Flat tax rates, no state tax.
Fill in the grant, then click Compare.
Result
If the shares end up worth more or less
| Scenario | Value per share at sale | Tax with election | Tax without | Election saves |
|---|
How it is calculated
With the election: ordinary tax on (value at grant minus price paid) times the shares, due now, plus capital gains tax on the rise from the grant value to the sale value. Without it: each monthly tranche is taxed as ordinary income on its value on its vest date less the price paid, and the rise after that is a capital gain. Value is assumed to move steadily from the grant value to the sale value. Gains held more than 12 months use the long-term rate, shorter ones the ordinary rate. Losses are not credited.
Not modelled: state tax, alternative minimum tax, net investment income tax, capital loss limits, QSBS treatment, acceleration on a sale, repurchase prices other than what you paid, and company valuations. Unverified: checked by hand calculation and unit tests only. Have a tax professional review your actual grant.
Common questions
What is a Section 83(b) election?
When you receive stock that vests over time, the tax code normally taxes you as each piece vests, on its value that day. An 83(b) election lets you choose instead to be taxed on the stock's value at grant, less what you paid. Later gains are then capital gains. This tool compares the two paths with the numbers you enter.
What is the 83(b) deadline?
30 days after the grant date, counted in calendar days. The deadline cannot be extended, and missing it cannot be fixed later. Mailing the election to the IRS with proof of delivery is the safe route; ask a tax professional how to file. Enter your grant date and the tool shows the date.
Why do founders usually pay $0 to elect?
If you buy the shares for what they are worth at grant, there is no spread to tax. The election then costs nothing in tax and starts your capital gains holding period and fixes your basis. If the company grows, avoiding ordinary tax at each vest date is worth far more.
What is the risk of electing?
You pay tax at grant on shares you might forfeit. If you leave before they vest, the tax is not refunded and the loss is limited to what you actually paid for the shares. Enter the month you might leave to see the forfeited shares and the wasted tax.
Does this apply to stock options or RSUs?
No. It models restricted stock you own from grant. Standard stock options and RSUs do not qualify for an 83(b) election. An early exercise of options into unvested stock can, and this tool models that case if you enter the exercise price as the price paid.
What is not modelled?
State tax, alternative minimum tax, the net investment income tax, capital loss limits, QSBS treatment, acceleration on a sale, repurchase prices other than what you paid, and company valuations. It applies flat rates you type in.
Is my equity information uploaded anywhere?
No. Everything you type stays in this browser tab. There are no accounts, cookies or analytics vendors.