Tax Loss Harvesting Calculator
Calculate tax savings from harvesting investment losses against gains. See $3,000 carryforward rules.
By Konstantin Iakovlev · Updated September 2026 · Source: IRS — Forms, Instructions & Publications
Tax Before Harvesting
$7,250.00
Tax After Harvesting
$2,900.00
Tax Savings
$4,350.00
Harvesting Details
| Realized Gains | $25,000.00 |
| Harvested Losses | $15,000.00 |
| Net Gain | $10,000.00 |
| Total Tax Savings | $4,350.00 |
Use the Tax Loss Harvesting Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Selling investments at a loss to offset realized capital gains is a proven way to trim a tax bill, and this calculator quantifies the savings for you. It accounts for the $3,000 ordinary income deduction limit and shows how much of an unused loss carries forward to the next year, so you can tune your portfolio and lower your overall tax burden.
The process begins by totaling your realized capital gains and your realized capital losses, then offsetting the gains dollar-for-dollar against the losses. When net losses run past your gains, up to $3,000 of the excess is applied against ordinary income, and whatever remains is carried forward to later tax years. The calculator values each dollar at your federal bracket plus your state rate, which is how short-term gains are taxed; for long-term gains, enter your capital gains rate (0%, 15% or 20%) as the federal rate.
Only realized losses, the kind that come from actually selling an asset, can be harvested; paper losses on positions you still hold do not count. Watch the wash sale rule as well, since it disallows the loss if you buy a substantially identical security within 30 days before or after the sale. Make sure you have enough gains to absorb, and keep the $3,000 ordinary income cap in mind, because anything above it can only be carried forward.
Example: Harvesting Losses Against Short-Term Gains
- 1 Jane has $20,000 of realized short-term capital gains in 2026 and sells positions with $25,000 of losses. She is in the 24% federal bracket and pays 5% state tax, a combined 29%.
- 2 Before harvesting, the gains would cost $20,000 × 29% = $5,800 in tax.
- 3 After harvesting, the losses wipe out all $20,000 of gains and leave a $5,000 net loss. $3,000 of it is deducted from ordinary income, saving $3,000 × 29% = $870, and the other $2,000 carries forward to 2027.
- 4 The calculator shows total tax savings of $5,800 + $870 = $6,670 for 2026. The $2,000 carryforward can offset gains, or up to $3,000 of ordinary income, in later years.
Source: IRS — Forms, Instructions & Publications · Last updated: September 2026
Frequently Asked Questions
How does tax loss harvesting work?
What is the wash sale rule?
How much can tax loss harvesting save me?
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