Capital Gains Harvesting Calculator
Long-term capital gains are taxed at 0% when your taxable income stays under $49,450 (single) or $98,900 (joint) for 2026. Harvesting means selling winners inside that room to reset their cost basis tax-free. This calculator shows exactly how much room you have and what it saves.
How to use this calculator
- Enter taxable income before gains.
- Enter realized long-term gains you plan.
- Enter filing status.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Long-term gains stack on top of your ordinary income, and the 0% bracket covers the gains below the $49,450/$98,900 threshold for 2026. Any gain above the room is taxed at 15% (or 20% above $545,500/$613,700). Selling just enough to fill the room resets your cost basis without tax — a gift from the tax code to low-income years and early retirees.
Frequently asked questions
Is this legal?
Yes — harvesting gains within the 0% bracket is a standard, explicitly legal strategy (the IRS even publishes the brackets). The one catch is the wash-sale rule if you rebuy the same security within 30 days; holding a different but similar fund avoids it.
When is the 0% bracket most useful?
Low-income years: a gap between jobs, a sabbatical, early retirement before Social Security, or a year with heavy deductions. That is also the ideal year for a Roth conversion — the room is shared with ordinary income.
What if my gains push me past the 0% bracket?
Only the portion above the threshold is taxed — 15% on that slice. Harvesting more than the room is still usually fine; you are just paying 15% instead of 0%.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.