• Visit Schwab.com

Equity Award Center

Employee Stock Purchase Plan

Your company-run Employee Stock Purchase Plan (ESPP) allows you to buy shares of your employer’s stock at a discounted price, typically through after-tax payroll deductions.

Types of Shares

Depending on when you sell the shares, the disposition will be classified as either qualified or nonqualified. And each will have a different tax implication.

Qualified Shares

A qualified plan allows employees under U.S. tax law to purchase stock at a discount from fair market value without any taxes owed on the discount at the time of purchase. In some cases, a holding period will be required for the purchased stock in order to receive favorable long-term capital gains tax treatment on a portion of your gains when the shares are sold.


Get Started

You can find articles, FAQs, tutorials, forms, and a glossary in the Resource Center.

Contact Us

Schwab Stock Plan Specialists are available by phone, Monday through Friday, 24 hours a day.

Outside the U.S.:
Call toll-free with an international dialing instructions.

Speak with a Schwab Stock Plan Specialist:

800-654-2593

Monday through Friday, 24 hours a day

Outside the U.S.:
Call toll-free using our
international dialing instructions.

Find a branch

 

Helpful Links

How to navigate Schwab.com and access
the Schwab Equity Award Center®.

Watch now

More resources