What is the deadline to file an 83(b) election?

You must file the written election letter with the IRS within exactly 30 calendar days of the stock grant or option exercise date. The IRS does not allow late filings or extensions for any reason.

Updated: August 2026 • Verified v1.2

IRS Section 83(b) Election Startup Equity Tax Savings Calculator

Finance & MathPopular

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Savings = (Vesting_Spread * Ordinary_Tax + Exit_Spread_Without * LTCG) - (Grant_Spread * Ordinary_Tax + Exit_Spread_With * LTCG)

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Understanding Your Results

Compares side-by-side tax paid at grant, phantom taxes during vesting, and capital gains taxes at exit, highlighting total net tax savings and cash out-of-pocket avoided.

Practical Guidance & Next Steps

The IRS requires an 83(b) election to be postmarked within exactly 30 calendar days of the stock purchase or option exercise. Send via USPS Certified Mail with Return Receipt Requested and retain tracking permanently.

What is this?

A startup finance calculator that models the tax implications and cash savings of making a timely Section 83(b) election on vesting equity.

How does it work?

1. Enter number of shares, purchase price, and grant Fair Market Value (FMV). 2. Set projected vesting FMV and target exit price. 3. Compare total tax liability and net take-home proceeds with vs without 83(b).

Why use it?

Protects founders and employees from paying debilitating ordinary income taxes on illiquid shares during company growth.

Technical Scope & Calculation Limitations

Models standard US Federal and State capital gains vs ordinary income tax treatment.

Frequently Asked Questions

Section 83(b) of the Internal Revenue Code allows founders and employees to elect to pay ordinary income tax on the fair market value of restricted stock at the time of grant rather than when the shares vest.

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