US 2028 Equity Comp Tax

2028 equity comp: ISO (Incentive Stock Options) → AMT trigger + LTCG if hold 2yr grant + 1yr exercise. NSO → ordinary at exercise. RSU → ordinary at vest.

Equity type

Strike price ($)

FMV at exercise/vest ($)

Marginal bracket %

Total Tax

—

Type

—

Spread (FMV - strike)	—
Tax at exercise/vest	—
AMT (ISO only)	—
Total tax 2028	—

Equity compensation 2028 tax: ISO (Incentive Stock Options) — no tax at exercise but AMT preference item; LTCG if hold 2 yrs from grant + 1 yr from exercise. NSO (Non-Qualified Stock Options) — ordinary income at exercise (FMV - strike). RSU (Restricted Stock Units) — ordinary income at vest (full FMV). ISO best for LTCG potential; RSU simplest; NSO middle.

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Last updated May 2026. Sources: IRS Equity Comp.