ESOP tax calculator
Enter your options, the exercise price, the value at exercise and your sale. See the tax at both stages.
- Listed and unlisted
- Startup deferral explained
- Free, no sign-up
Plan your exercise
When you exercise and when you sell both affect your tax. Our experts plan it with you.
Questions people often ask
What is the startup deferral?
Employees of eligible startups can pay the tax on exercise later: within 14 days of the earliest of 5 years, leaving the company, or selling.
Who decides the fair market value?
For unlisted shares, a SEBI-registered merchant banker's valuation.
Two taxes on ESOPs
Exercise, then sale.
- At exercise: value minus price is taxed as salary.
- At sale: the gain over that value is a capital gain.
- Holding period decides the rate.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Tax rules for salaried individuals, AY 2026-27 Income Tax Department
Common questions
When are ESOPs taxed?
When you exercise, on the difference between the value and the exercise price, as salary; and when you sell, as capital gains.
What is the perquisite?
(Fair market value at exercise − exercise price) × shares exercised.
What is my cost when I sell?
The fair market value at exercise, which was already taxed as salary.
How are unlisted ESOP shares taxed on sale?
Held over 24 months: 12.5%. Held less: at your slab rate.
Can I defer the tax?
Only at an eligible startup, until the earliest of 5 years, leaving, or selling.
