QSBS Section 1202 Savings Calculator

Model the federal tax exclusion under Section 1202 for Qualified Small Business Stock, including the One Big Beautiful Bill Act’s new tiered holding period (50% at 3 years, 75% at 4 years, 100% at 5+ years) and the $15M per-issuer cap for stock issued after July 4, 2025. Compare your tax outcome across founder-friendly states.

Your QSBS Sale

Stock acquisition datedetermines pre/post-OBBBA rules

Sale datewhen you sell the QSBS

Adjusted basis ($)what you paid for the stock

Gross sale proceeds ($)what you sell for

State of residence at saledetermines state tax treatment

Your Tax Outcome

QSBS savings vs. ordinary LT capital gain

Total gain on sale—

Holding period—

Exclusion tier—

Per-issuer cap—

Federally excluded gain—

Federally taxable gain—

Federal tax @ 23.8%—

State tax—

Total tax with QSBS—

Hypothetical: same sale, no QSBS

Tax	Amount
Federal @ 23.8% on full gain	—
State on full gain	—
Total without QSBS	—

Planning a QSBS-eligible exit?

The eligibility checklist (active business, gross-asset cap, original-issue rules) is where most QSBS claims get knocked out. We help Florida founders structure the stock issuance, the 5-year clock, and the sale to preserve the exclusion.

Call 904-234-5653 Read the QSBS overview

Disclaimer. This tool is provided for general informational purposes only and is not legal, tax, or financial advice. The calculation is a simplified directional model. Actual Section 1202 eligibility depends on issuer-level requirements (C-corporation status, active-trade-or-business test, gross-asset cap at issuance), holding-period rules including tacking, original-issue requirements, and exceptions that this tool does not model. State conformity also varies by year and may differ from the labels shown here. The OBBBA tiered holding period (50%/75%/100%) applies only to QSBS issued after July 4, 2025; pre-OBBBA stock retains the binary 5-year/100% rule and a $10M per-issuer cap. Consult counsel and a CPA before relying on any output.