Make Equity Tax Understandable
ISO, NSO, and RSU are taxed differently at grant, vesting, exercise, and sale. Fintra surfaces the treatment per grant so employees and finance aren’t surprised at tax time.
What equity tax treatment covers
Fintra shows the tax treatment of each grant type across its lifecycle - grant, vesting, exercise, and sale - so an employee looking at their options or RSUs understands what’s taxable, when, and roughly how much. It’s built to inform decisions like when to exercise; it provides estimates and education, not tax advice.
- Treatment by grant type: ISO, NSO, RSU
- Taxable events across grant, vesting, exercise, sale
- Estimates tied to the grant’s real numbers
- Education to inform (not replace) tax advice
When each event is taxed
| Type | Exercise/Vest | Sale |
|---|---|---|
| ISO | AMT on spread at exercise | Cap gains if holding periods met |
| NSO | Ordinary income on spread | Cap gains on further gain |
| RSU | Ordinary income at vesting | Cap gains on further gain |
Informing the exercise decision
Connected to exercise and total comp
- Feeds the option-exercise cost/tax estimate
- Reads grant type and terms from the cap table
- Complements total-compensation valuation
Frequently asked questions
How are ISOs, NSOs, and RSUs taxed differently?
NSOs are taxed as ordinary income on the spread at exercise; ISOs have no ordinary tax at exercise but can trigger AMT, with capital-gains treatment on sale if holding periods are met; RSUs are ordinary income at vesting. Fintra surfaces the right treatment per grant so the difference is clear.
Does Fintra give tax advice?
No - it provides estimates and education tied to your grants’ real numbers to inform decisions like when to exercise. For actual filing and planning decisions, it points you to a qualified tax professional rather than replacing one.
Why do ISO holding periods matter?
Meeting the ISO holding periods (a qualifying disposition) preserves favorable long-term capital-gains treatment; selling too early converts part of the gain to ordinary income. Fintra highlights these so employees can plan around them.
How does this connect to exercising options?
The tax treatment feeds the exercise flow’s cost-and-tax estimate, so when an employee considers exercising, the estimated tax by grant type is right there - informed by the grant’s real spread and terms.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Take the mystery out of equity tax
Start free, no card required. Surface ISO, NSO, and RSU treatment per grant, in plain language.
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