2026 Calculator
ESPP Calculator
Calculate your stock purchase gains
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This estimate is based on projected 2026 data and industry averages. Actual premiums vary by insurer, location, and individual factors. Consult a licensed insurance agent for accurate quotes.
*Based on estimated 2026 projections. Data may not reflect real-time legislative changes.
FAQ
What is the ESPP contribution limit for 2026?
The IRS limits ESPP purchases to $25,000 worth of stock per year (based on stock price at grant date). Most employers also limit contributions to 10-15% of your paycheck. These are after-tax contributions, not pre-tax like 401k.
How does the ESPP discount work?
Most qualified ESPPs offer a 15% discount on company stock. With a 'lookback' provision, you get 15% off the lower of the price at the start or end of the offering period, potentially giving you 30-40%+ gains if the stock rises.
How is ESPP taxed?
At purchase, you owe no tax. When you sell: if held 2+ years from grant and 1+ year from purchase (qualifying disposition), the discount is taxed as income and additional gains as capital gains. Otherwise (disqualifying disposition), more is taxed as ordinary income.