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Question

How does the new tiered holding period for QSBS function?

Answer

For qualified small business stock (QSBS) acquired after July 4, 2025, the OBBBA introduced a tiered exclusion: 50% after three years, 75% after four years, and 100% after five years. The nonexcluded portion at the three- and four-year tiers is taxed at 28% plus the 3.8% net investment income tax. The full 100% exclusion still requires a five-year hold.

Related FAQs

Should I hold my QSBS for five years or sell earlier under the new tiered rules?

Where can I find a wealth advisor who understands QSBS planning?

What’s the difference between pre-OBBBA and post-OBBBA QSBS rules?
Professions Tax Planning Small Business Business Owners Impact of New Laws Tax Tips & Tricks Investors Women Business Owners Selling a Business FAQs
Last Updated Nov. 10, 2026
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