Tax-Loss Harvesting Calculator

Agarapu Ramesh — Editor and content reviewer
Reviewed for accuracy Reviewed by Agarapu Ramesh, science educator (chemistry). LinkedIn
Last reviewed: May 2026 | Aligned with IRS publications and tax law

Calculate the potential tax savings of selling losing investments to offset gains. Reduce your tax bill by harvesting losses strategically.

📅 Tax Year:

🧮 Calculate Savings

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Loss amount you plan to realize
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How It Works

Tax-loss harvesting involves selling securities at a loss to offset capital gains tax liability.

Order of Operations

  1. Losses first offset gains of the same type (short-term vs short-term).
  2. Remaining losses offset gains of the other type.
  3. If losses exceed all gains, up to $3,000 ($1,500 MFS) can be deducted against ordinary income (wages).
  4. Any remaining loss is carried forward to future years.

Use Cases

  • Estimate tax savings from realizing losses in a down market to offset short- and long-term gains.
  • Plan year-end portfolio rebalancing while maximizing the tax benefit of unrealized losses.
  • Determine how much loss you can deduct against ordinary income (up to $3,000 per year).
  • Calculate loss carryforward amounts that can be applied to future tax years.
  • Compare harvesting scenarios to decide which losing positions to sell first.

Assumptions & Limitations

  • Losses offset same-type gains first (short-term vs. short-term), then cross-type gains.
  • Excess losses above all gains can offset up to $3,000 of ordinary income ($1,500 if Married Filing Separately).
  • Remaining losses carry forward indefinitely to future tax years.
  • The wash sale rule (buying substantially identical securities within 30 days) is not checked here.
  • State and local taxes are not included in the savings estimate.
  • This tool provides estimates for educational purposes only and does not constitute tax advice. Consult a qualified tax professional for your specific situation.

What this calculator does

This page turns the visible tax inputs into a planning estimate that can be checked against official forms and records. It is designed for quick comparison, not as a substitute for professional tax advice.

How to use this calculator

  1. Enter the filing status, income, deduction, credit, withholding, and other fields that apply to your situation.
  2. Run the calculator and review the tax estimate, rate, deduction, or planning result shown on the page.
  3. Compare the result with IRS forms, state rules, and your own records before making payment or filing decisions.

Frequently Asked Questions

Tax loss harvesting calculator?
Start with the key tax inputs and keep each number easy to verify. For the Tax-Loss Harvesting Calculator, start with realized gains, unrealized losses, holding period, replacement purchases, income tax bracket, and capital loss carryovers. Then use: tax savings = loss used x tax rate on the gain or income it offsets. A $6,000 harvested loss can wipe out $6,000 of capital gains; if no gains remain, up to $3,000 may offset ordinary income for many filers. Read the result as offset amount, tax savings, and carryforward. Watch the wash sale rule when buying substantially identical securities around the loss sale.
How much can tax loss harvesting save me?
Separate each tax component so the estimate stays readable and easier to check. The Tax-Loss Harvesting Calculator works best when you enter realized gains, unrealized losses, holding period, replacement purchases, income tax bracket, and capital loss carryovers. The planning formula is tax savings = loss used x tax rate on the gain or income it offsets. A $6,000 harvested loss can wipe out $6,000 of capital gains; if no gains remain, up to $3,000 may offset ordinary income for many filers. Use the final number for offset amount, tax savings, and carryforward. Watch the wash sale rule when buying substantially identical securities around the loss sale.
Capital loss tax savings calculator?
Use this as a planning estimate, then reconcile it with the actual tax forms. Enter realized gains, unrealized losses, holding period, replacement purchases, income tax bracket, and capital loss carryovers in the Tax-Loss Harvesting Calculator. A practical formula is: tax savings = loss used x tax rate on the gain or income it offsets. A $6,000 harvested loss can wipe out $6,000 of capital gains; if no gains remain, up to $3,000 may offset ordinary income for many filers. Review offset amount, tax savings, and carryforward. Watch the wash sale rule when buying substantially identical securities around the loss sale.
Offset capital gains with losses calculator?
Use the calculator for a working estimate instead of relying on a rough guess. For the Tax-Loss Harvesting Calculator, start with realized gains, unrealized losses, holding period, replacement purchases, income tax bracket, and capital loss carryovers. Then use: tax savings = loss used x tax rate on the gain or income it offsets. A $6,000 harvested loss can wipe out $6,000 of capital gains; if no gains remain, up to $3,000 may offset ordinary income for many filers. Read the result as offset amount, tax savings, and carryforward. Watch the wash sale rule when buying substantially identical securities around the loss sale.
Tax loss harvesting 3000 income offset calculator?
Keep the inputs practical for this estimate. The Tax-Loss Harvesting Calculator works best when you enter realized gains, unrealized losses, holding period, replacement purchases, income tax bracket, and capital loss carryovers. The planning formula is tax savings = loss used x tax rate on the gain or income it offsets. A $6,000 harvested loss can wipe out $6,000 of capital gains; if no gains remain, up to $3,000 may offset ordinary income for many filers. Use the final number for offset amount, tax savings, and carryforward. Watch the wash sale rule when buying substantially identical securities around the loss sale.
Harvest losses before year end calculator?
Start with the key tax inputs and keep each number easy to verify. Enter realized gains, unrealized losses, holding period, replacement purchases, income tax bracket, and capital loss carryovers in the Tax-Loss Harvesting Calculator. A practical formula is: tax savings = loss used x tax rate on the gain or income it offsets. A $6,000 harvested loss can wipe out $6,000 of capital gains; if no gains remain, up to $3,000 may offset ordinary income for many filers. Review offset amount, tax savings, and carryforward. Watch the wash sale rule when buying substantially identical securities around the loss sale.
Tax loss harvesting calculator short term gains?
Separate each tax component so the estimate stays readable and easier to check. For the Tax-Loss Harvesting Calculator, start with realized gains, unrealized losses, holding period, replacement purchases, income tax bracket, and capital loss carryovers. Then use: tax savings = loss used x tax rate on the gain or income it offsets. A $6,000 harvested loss can wipe out $6,000 of capital gains; if no gains remain, up to $3,000 may offset ordinary income for many filers. Read the result as offset amount, tax savings, and carryforward. Watch the wash sale rule when buying substantially identical securities around the loss sale.

Sources & References

Tax laws change frequently. Always verify current rates and thresholds on IRS.gov before making financial decisions.

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