ESPP Tax and Cost Basis Calculator

The ESPP Tax and Cost Basis Calculator helps employees participating in an Employee Stock Purchase Plan (ESPP) understand the tax implications of selling their shares. It determines whether a sale qualifies as a Qualified or Disqualified Disposition and calculates ordinary income, capital gains, and the applicable taxes based on user inputs. This tool is especially useful for tax planning and maximizing ESPP benefits.

ESPP Tax and Cost Basis Calculator

First Date of Offering Period (mm/dd/yyyy) Market Price on First Date of Offering ($) Purchase Date (mm/dd/yyyy) Market Price on Purchase Date ($) Discount (%) Total Amount Invested ($) Date of Sale (mm/dd/yyyy) Market Price on Date of Sale ($) Ordinary Income Tax Rate (%) Long Term Capital Gains Tax Rate (%)

Instructions:

Enter the required details such as offering date, purchase date, sale date, and stock prices. Default values are set where applicable.
Ensure correct formatting: Dates should follow mm/dd/yyyy and all monetary values should use commas for thousands.
Understand the results: The calculator will classify the sale as either a Qualified or Disqualified Disposition, compute your cost basis, taxable income, and applicable taxes.
Use the results for tax planning: The calculator helps estimate tax liabilities on ESPP sales to avoid surprises during tax season.

See ESPP Concepts & Tax Explained for more details.