Tax Loss Harvesting Calculator
A losing investment isn't only a loss — sold strategically, it offsets your gains and up to $3,000 of ordinary income every year until used up. This calculator shows the tax you save now and what carries forward.
How to use this calculator
- Enter realized capital gains this year.
- Enter unrealized losses you can sell.
- Enter taxable income (for the $3,000 offset).
- Enter filing status.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Losses cancel gains dollar-for-dollar first — saving tax at your capital gains rate — then up to $3,000 of leftover loss offsets ordinary income at your marginal rate, and the rest carries forward indefinitely. The wash-sale rule blocks the deduction if you buy the same security within 30 days before or after the sale, so harvesting usually means switching to a similar fund.
Frequently asked questions
Is it worth selling at a loss?
Almost always, if you plan to hold similar exposure anyway: sell the loser, take the deduction, and buy a similar (not identical) fund — the market exposure stays, the tax benefit is yours. The exception is a position you expect to bounce back faster than 30 days.
What is the wash-sale rule exactly?
If you sell at a loss and buy the same or substantially identical security within 30 days before or after, the loss is disallowed and added to the new position's basis. Switching to a different fund or ETF in the same sector avoids it.
Can I harvest in a retirement account?
No — losses inside an IRA or 401(k) produce no deduction, and buying the same fund back there within 30 days can still trigger a wash sale against your taxable position. Harvest only in taxable accounts.
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.