Glossary · Equity

Incentive Stock Option (ISO)

Tax-advantaged stock options for US employees.

Definition

ISOs are stock options with favorable US tax treatment — no ordinary income tax at exercise if held long enough — but subject to AMT considerations.

How SalaryScopePro uses this term

We surface incentive stock option (iso) across salary results, occupation pages, city pages, and Premium Reports — with consistent definitions and methodology. See methodology and data sources for how the underlying numbers are computed.