QSBS Section 1202 Savings Calculator
For Informational Purposes Only
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
Your Tax Outcome
QSBS savings vs. ordinary LT capital gain
$0
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.
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.