"Stock options" is a broad term, but the specific name on your grant agreement (ISO) or (NSO) determines the tax rules that apply at grant, exercise, and sale. Because tax liabilities arise at different stages depending on the option type, there is no universal timeline for exercising. Understanding whether you face ordinary income tax at exercise or potential Alternative Minimum Tax (AMT) exposure is a foundational step in managing your equity.

Equity compensation can be a highly effective wealth-building tool available to tech professionals and startup employees and one of the most easily mismanaged, since a single missed deadline or overlooked tax rule can turn a windfall into a headache. Here’s where the key rules and numbers stand for 2026.