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The IPO is a taxable event. You’re taxed at the IPO price, and your company should withhold shares based on that price.

After whatever lockup you have some fraction of shares remaining. When you sell those and if the price is greater than the IPO price then you have capital gains on whatever shares you still hold.

You still owe tax from the IPO. My point is the company will withhold shares from you, but you might need to pay more if they underwitheld for the IPO. This has nothing to do with your capital gains from selling your remaining shares.






The IPO is not a taxable event.

Parent is presumably referring to RSU releases at IPO which are taxable. You are correct that options and shares are unaffected.

https://www.amafinance.org/ipo/overview/


It's income, which in the USA is generally taxable.

You only pay tax when you sell your shares or exercise options.



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