Tax Loss Harvesting Calculator
Calculate your potential tax savings from selling losing investments to offset capital gains and reduce your tax bill.
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Tax Loss Harvesting Savings
Tax loss harvesting means selling investments at a loss to offset capital gains and reduce your tax bill.
Net Gain/Loss = Capital Gains - Capital Losses
If losses exceed gains:
- Deduct up to $3,000 against ordinary income per year
- Carry forward remaining losses to future years
Tax rates on capital gains (2026):
- Short-term (held < 1 year): Taxed as ordinary income (up to 37%)
- Long-term (held > 1 year): 0%, 15%, or 20% depending on income
Wash sale rule: You cannot buy a “substantially identical” security within 30 days before or after the sale, or the loss is disallowed.
Strategy: Sell the losing position, immediately buy a similar (but not identical) investment to maintain your portfolio allocation.
Example: $10,000 gain and $8,000 loss at 24% tax rate:
Tax on $10,000 gain = $2,400
Tax after harvesting = ($10,000 - $8,000) × 24% = $480
Savings = $1,920