Tax Loss Harvesting Calculator

Calculate tax savings from harvesting investment losses against gains. See $3,000 carryforward rules.
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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

Our Tax Loss Harvesting Calculator helps you determine your potential tax savings by strategically selling investments at a loss to offset realized capital gains. This powerful tool takes into account the $3,000 ordinary income deduction limit and projects carryforward losses for future tax years, giving you a clear financial advantage for 2026 and beyond. By understanding your potential tax relief, you can optimize your investment portfolio and reduce your overall tax burden.

The calculator operates by first summing your total realized capital gains and total realized capital losses. It then offsets your capital gains dollar-for-dollar with your capital losses. If your net capital losses exceed your capital gains, the calculator applies up to $3,000 of those losses against your ordinary income, as allowed by 2026 tax law. Any remaining losses are then calculated as a carryforward to subsequent tax years.

Remember that only realized losses (from selling assets) can be harvested; unrealized losses (paper losses) do not apply. A common mistake is violating the wash sale rule, which disallows a loss if you repurchase substantially identical securities within 30 days before or after the sale. Ensure you have sufficient capital gains to offset or be aware of the $3,000 ordinary income limit, as excess losses may only be carried forward.

Example: Maximizing Your 2026 Tax Savings

  1. 1 Jane realized $15,000 in short-term capital gains and $5,000 in long-term capital gains in 2026. She also has $25,000 in short-term capital losses.
  2. 2 The calculator first offsets her $20,000 total capital gains ($15,000 STCG + $5,000 LTCG) with her $25,000 short-term capital losses, resulting in a net capital loss of $5,000. It then applies the maximum $3,000 of this net loss against her ordinary income.
  3. 3 Jane's 2026 taxable income will be reduced by $3,000. She will also have a $2,000 capital loss carryforward into 2027.
  4. 4 This strategy effectively reduced Jane's current tax liability by $3,000 and provides a $2,000 benefit for future tax years, showcasing the power of strategic tax loss harvesting.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

How does tax loss harvesting work?
You sell investments at a loss to offset capital gains and reduce your tax bill. If losses exceed gains, you can deduct up to $3,000 against ordinary income per year, with unlimited carryforward of remaining losses to future years.
What is the wash sale rule?
The wash sale rule prevents you from claiming a tax loss if you buy a "substantially identical" security within 30 days before or after the sale. To avoid it, wait 31 days to repurchase, or buy a similar but not identical investment (e.g., switch from one S&P 500 fund to another).
How much can tax loss harvesting save me?
At the 22% federal bracket, harvesting $10,000 in losses against gains saves $1,500 in federal capital gains tax. Against ordinary income ($3,000 max per year), it saves $660-$1,110 depending on your bracket. The real value compounds over time through deferred taxes.

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