Free tool
83(b) Election Decision Tool
Filing an 83(b) election (IRC §83(b)) taxes your restricted stock at grant — when the spread is usually tiny — and converts all future upside to long-term capital gains. The catch: you have 30 days from grant to file (26 CFR §1.83-2(b)). See the tax delta for your numbers and the days you have left.
Your grant
Estimate only — not financial or tax advice. An 83(b) election is irrevocable and risky if the stock falls or you forfeit shares. Consult a qualified CPA before you file.
Elect 83(b) vs no election
You have 32 days left to file — the deadline is July 27, 2026 (26 CFR §1.83-2(b)).
- Elect now — lifetime tax
- $706,868
- No election — lifetime tax
- $751,347
- Ordinary income now (elect)
- $9,000
- Ordinary income at vest (no election)
- $499,000
Based on tax year 2025 brackets and rates (IRC §83). Both branches run through the same engine; the no-election branch models a single full-position vest at your projected vest FMV and assumes a long-term holding period at sale. Forfeiture risk and per-tranche timing are not modeled.
83(b) election FAQ
What is an 83(b) election?
An 83(b) election (IRC §83(b)) lets you choose to pay ordinary income tax on the value of restricted stock — or early-exercised options — at grant, rather than as it vests. You pay tax now on the (FMV − price paid) spread at grant, which is often near zero for an early-stage company, and then all future appreciation is taxed as capital gain instead of ordinary income.
When does filing an 83(b) election save tax?
It tends to help when the spread at grant is small and the stock is expected to appreciate a lot before you sell. Electing locks in a tiny (or zero) ordinary-income bill now and converts the rest of the upside to long-term capital gains. If the value falls, or you forfeit unvested shares, the election can backfire — you paid tax on value you never realized. This tool runs both branches through the same engine so you can see the delta for your numbers.
What is the 83(b) filing deadline?
The election must be filed with the IRS within 30 days of the grant (the date the property is transferred) — 26 CFR §1.83-2(b). The deadline is strict and there is generally no extension. This tool counts the days remaining from the grant date you enter.
Does this tool replace a tax advisor?
No. This is a free estimate based on tax-year 2025 brackets and rates. It models a single full-position vest for the no-election branch and assumes a long-term holding period at sale; it does not account for forfeiture risk, per-tranche vesting, AMT interactions, or your complete situation. Confirm any 83(b) decision with a qualified CPA before you file.
Need the full picture — per-tranche vesting, AMT interactions, and sale timing? Open the full 83(b) calculator.