When is the next Databricks tender offer?

Not announced. The most recent window closed around March 2026. With the IPO base case at 2027, further windows are plausible as the interim liquidity mechanism, but cadence, eligibility, and pricing only become real when official offer materials arrive.

How are Databricks tender sales taxed?

Because Databricks removed its RSU second trigger in 2025, most holders already own settled shares and already paid ordinary income tax at settlement. A tender sale is therefore a capital gain: proceeds minus the settlement-date basis, long-term if held over a year from settlement, short-term (ordinary rates) if not. No withholding is taken on gains, so estimated taxes for that quarter are on you.

How much should I sell in a Databricks tender?

Anchor it to a written concentration policy — the percentage of net worth you want in Databricks given a 2027-or-later listing — rather than a price prediction. Then adjust for lot-level tax: lots past the one-year mark sell at long-term rates; recently settled lots may be worth holding until they mature. Model both before the window opens, because windows are short.

Do early Databricks employees have QSBS?

Possibly. Some tenured employees hold ISOs from pre-2016 grants made when the company's asset base was smaller, which can qualify as qualified small business stock under IRC § 1202. OBBBA raised the exclusion to $15M with tiered 3/4/5-year holding. Eligibility is document-intensive — verify before selling those specific lots in any tender.

Databricks tenders: selling shares you already paid tax on

Databricks holders are in an unusual spot: the 2025 second-trigger removal means the ordinary-income event already happened at settlement. What's left is a cleaner question — when to convert settled shares into money — and until the 2027-base-case IPO, tender windows like March 2026's are the answer.¹

How the program has worked

March 2026: the most recent window. Eligible current and former employees could sell at prices reflecting the company's reported valuation. Terms, caps, and eligibility live in each offer's materials.¹
Context: $134B Series L (Dec 2025); talks reported at $165–175B (June 2026); IPO pushed to 2027. The tender program is the liquidity mechanism in the meantime — covered on the Databricks IPO page.¹
Because of the 2025 trigger removal, participants sell shares, not settling RSUs. That single fact drives the whole tax picture below.¹
Programs change — verify your documents. Grant-year mechanics differ; your settlement statements and the official tender documents control.

Educational only; not affiliated with, sponsored by, or endorsed by Databricks.

The tax picture: capital gains, lot by lot

Your basis was set at settlement. When vested RSUs settled in 2025 (or as they settle on later vest dates), the settlement-date value was ordinary income — and became your cost basis per share.²
Tender proceeds − basis = capital gain. Lots held more than a year from settlement: long-term — 0/15/20% federal (20% starts above $545,500 single / $613,700 MFJ in 2026) plus 3.8% NIIT above $200K/$250K MAGI. Lots under a year: short-term, at ordinary rates up to 37%. California taxes both at up to 13.3%.³
Nothing is withheld on gains. Unlike RSU settlement (which at least withholds 22%), a share sale in a tender typically arrives gross. The estimated payment for that quarter — e.g., June 15 for a Q2 sale — is your job. Missing it buys underpayment penalties.
Lot selection is real money. Selling matured lots first can move a chunk of the gain from ~37% ordinary to 15–20% long-term treatment. Bring a per-lot settlement-date inventory to any window.

Sizing the sale

The durable framework: write down your target concentration — what percent of net worth belongs in Databricks with a listing that's a year-plus away — and let each window move you toward it. Layer the tax nuance on top (mature lots first, QSBS lots analyzed separately⁴), and pre-commit before the window opens so a two-week election period doesn't force a rushed decision. The tender guide covers pricing-vs-409A mechanics; the Databricks equity guide has the full six-step plan; the tender calculator runs net-proceeds scenarios by instrument.

Windows are short. Policies are fast.

Get matched with a fee-only fiduciary who works tender events — lot-level tax modeling, concentration policy, QSBS review, estimated payments. Free, no obligation.

Sources

Rora Wealth — Navigating Databricks' tender offer and KB Financial Advisors — Databricks tender offer 2026 — trigger removal, March 2026 window, program mechanics; timing context per Allied VP.
IRC § 83 — settlement taxation of restricted property; supplemental withholding context per IRS Topic 307.
IRS Rev. Proc. 2025-32 — 2026 LTCG thresholds and ordinary brackets; California treatment per California FTB.
IRC § 1202 — Qualified small business stock — QSBS exclusion as amended by OBBBA ($15M, tiered 3/4/5-year holding).

Program facts reflect public reporting as of August 17, 2026; official offer materials control. Tax figures verified against IRS Rev. Proc. 2025-32 for tax year 2026.