Reddit (RDDT) NSO Exercise Calculator
Calculator · free · no signup · RDDTPlan your Reddit NSO exercise (federal, state, FICA) and compare sell-vs-hold for long-term capital gains.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
Your grant
Tax inputs
Hold strategy
Best after-tax payout — at year 1
$199,080
Sell + invest wins by $20,783 over Hold 1 yr.
Estimates only. Not financial advice.
Sell + invest
Best payout| Bargain element (sale − strike) | $350,000 |
| Federal | |
| State | |
| Medicare | −$5,075 |
| Additional Medicare | −$3,150 |
| Market gain over 1 yr at 10.0% | $18,573 |
| LTCG on diversified gain (fed + state + NIIT) | −$5,219 |
| Net at year 1 | $199,080 |
Sell every share immediately; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.
Exercise + hold 1 yr
| Sale proceeds (year 1) | |
| LTCG tax (federal + state + NIIT) | $0 |
| Net at year 1 | $178,297 |
Sold 2,678 shares at exercise to cover strike + tax; 2,322 shares held 1 yr for LTCG.
Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're exercising as a current employee.
Both columns are stated in year-1 dollars: sell-now proceeds compound at the market return and pay LTCG on the gain at year 1; any cash paid out of pocket on the hold side carries the same opportunity cost.
Net at year N — by hold period
Estimates only. Excludes AMT (NSOs do not trigger AMT), state-AMT, multi-state moves, and disqualifying-disposition edge cases. Not financial advice.
You calculated one NSO decision. The beta plans NSOs alongside RSUs and ISOs in a single multi-year tax plan.
Request beta access →About Reddit
Reddit (RDDT) is a public Consumer Internet company, incorporated in Delaware and headquartered in San Francisco, CA. IPO'd Mar 21, 2024.
Last close: $175.39 per share (as of 2026-06-16).
Equity grants at Reddit typically include incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs).
Reddit is an American proprietary social news aggregation and forum social media platform. Registered users submit content to the site such as links, text posts, images, and videos, which are then voted up or down by other members. Posts are organized by subject into user-created boards called "subreddits". Submissions with more upvotes appear towards the top of their subreddit and, if they receive enough upvotes, ultimately on the site's front page. Reddit administrators moderate the communities. Moderation is also conducted by subreddit-specific moderators, who are unpaid volunteers. It is operated by Reddit, Inc., based in San Francisco.
Source: Wikipedia (CC BY-SA 4.0)
Steve Huffman and Alexis Ohanian launched Reddit from Y Combinator's inaugural 2005 batch, with Aaron Swartz joining months later via the Infogami merger. Conde Nast bought the site in 2006 for roughly $10-20M, then parent Advance Publications spun it back out as an independent subsidiary in 2011. Headquartered in San Francisco, the company runs community-driven discussion forums and licenses its conversation archive to Google and OpenAI for AI training. Reddit went public on NYSE in March 2024 under ticker RDDT. Daily active uniques hit 121.4M and weekly actives reached 471M by 2025.
Sources: en.wikipedia.org · cjr.org
Equity comp at Reddit
- RSUs use single-trigger vesting: shares become yours as each portion vests on schedule, and the value is taxed as ordinary income at that point. No IPO or acquisition is required.
Researched 2026-05-07.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Reddit.
Use this calculator to estimate your Reddit (RDDT) NSO exercise tax (federal, state, FICA), then compare selling now versus holding through the long-term capital gains threshold. Inputs are yours: grant terms, current price, your income, your state.
Example: at Reddit (RDDT)'s last close of $175.39, exercising 5,000 NSOs with a $52.62 strike creates a $613,850 bargain element, taxed as ordinary income on the day you exercise. Combined federal + state + FICA on that bargain typically lands between $165,739 and $276,232 depending on your bracket and state. The calculator above computes the exact figure for your situation and compares selling now vs. holding through the long-term capital-gains threshold.
All Reddit tools → · Use the generic NSO Exercise Calculator for any company.
Reddit equity questions
- How is a Reddit NSO exercise taxed?
- Exercising a non-qualified stock option (NSO) creates ordinary income on the bargain element (the price on the day you exercise minus your strike), subject to federal income tax, state income tax, and FICA. The calculator above computes that tax for your Reddit grant and compares selling the shares now against holding past the one-year mark for long-term capital-gains treatment.
- Does Reddit grant ISOs, NSOs, or RSUs?
- Equity compensation at Reddit typically takes the form of incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise. Restricted stock units are taxed as ordinary income when they vest.
- Do Reddit RSUs use double-trigger vesting?
- No. Reddit restricted stock units (RSUs) use single-trigger vesting: each tranche becomes yours as it vests on schedule, taxed as ordinary income at that point, with no liquidity event required.
One piece of the puzzle.
OptionsAhoy plans your Reddit equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.