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VestingStrategy

NSO Exercise Tax Estimator

Non-qualified stock options are generally taxed as wages on the spread at exercise (FMV minus strike). This tool estimates federal income tax, employee Social Security and Medicare (including Additional Medicare Tax in a simplified way), optional state tax, and total cash to exercise.

NSO
Ordinary income
FICA

Calculator

Exercise inputs

Enter grant details. Social Security applies only up to the annual wage base (simplified using year-to-date wages).

Used for Social Security wage base and Additional Medicare (single threshold $200k simplified).

SEO topics this page covers

  • How non-qualified stock options are taxed at exercise in the U.S.
  • Spread (bargain element) treated as ordinary income for federal and payroll taxes
  • Cash needed: strike price payment plus estimated taxes not covered here as withholding

Related guides

Go deeper on the rules and planning ideas behind this calculator.