Employee Share Option Tax Calculator

Calculate the income tax and tax payable on gains arising from the exercise of share options and the subsequent sale of these shares. Learn more about the tax of share options here.

Share Options Income Tax Calculator

Note: When you exercise share options and sell the shares, the gain is subject to Income Tax, USC, and PRSI. This calculator estimates your tax liability based on current rates.

This is an estimate of the position based on the information inputted. All figures rounded to the nearest Euro. Other factors can also influence an individual’s tax position, it is recommended that personal tax advice be sought. The impact of some budget changes are not relevant to the tax position. Any pension contribution is assumed to be for the tax year. No responsibility is taken by Irish Tax Hub for any loss, however occasioned, to any person by reliance on this calculator.

FAQs

Frequently Asked Questions

Everything you need to know about how your Irish net income is calculated

What is the Employee Share Option Tax Calculator and how does it compute tax on share options in Ireland?

This Employee Share Option Tax Calculator helps you calculate income tax, USC and PRSI liabilities arising when you exercise share options and sell shares in Ireland.

How do I use the share options tax calculator with grant price, share price and number of shares?

Enter the grant (strike) price, current market share price, and number of options exercised for the calculator to estimate your taxable gain and tax payable via PAYE.

Which types of tax does the Employee Share Options calculator include?

The calculator captures all components - Income Tax at your marginal rate, Universal Social Charge, and Pay‑Related Social Insurance on the share option gain.

Does the calculator consider the transition to payroll taxation from January 2024?

Yes - since 1 January 2024, share option gains are taxed via real‑time payroll withholding (PAYE) rather than being reported via an RTSO1 , and the calculator reflects these updated rules.

How is the taxable gain calculated in the share options calculator for Irish employees?

The calculator computes gain as (market value at exercise – grant price) multiplied by number of shares, mirroring the formula used by Revenue for RTSO.

Can the calculator model both exercise and subsequent sale for capital gains tax?

Yes. First calculate the income tax/RTSO at exercise via payroll, and separately calculate Capital Gains Tax on any gain when shares are sold.

Is the share option tax calculator suitable for Irish residents and non‑residents performing Irish duties?

Yes - the tool calculates RTSO based on share options tied to employment duties performed in Ireland, regardless of residency, consistent with Revenue guidance.

Can I test different scenarios with the Employee Share Options calculator before exercising options?

Yes - you can adjust inputs like expected share price at exercise or number of options to run scenario planning and estimate net tax after RTSO deductions.

What documentation is needed to use the share options tax calculator accurately?

Have ready your share grant agreement (grant price and date), current market price when exercising, and number of options to exercise, ensuring precise calculation of option gain and RTSO liability.

How does the calculator help with tax planning for exercise of unapproved share schemes in Ireland?

Designed for unapproved share option schemes, the calculator shows how exercising options triggers immediate RTSO tax via PAYE, helping you plan timing and estimate income tax, USC, and PRSI liabilities.