How to Use the Tax-Loss Harvesting Calculator
Tax-loss harvesting reduces your capital gains tax bill by selling losing investments to offset realized gains. If you have $20,000 in gains and $8,000 in losses, only $12,000 is taxable — saving you $1,200 at a 15% tax rate.
Enter your total capital gains, total capital losses, and your capital gains tax rate (0%, 15%, or 20% for long-term in the US). The calculator shows your tax savings instantly.
US Capital Gains Tax Rates (2024)
Long-term (held over 1 year): 0% (income up to ~$47k single), 15% (most taxpayers), 20% (high earners). Short-term: taxed as ordinary income.
Important Note
The wash-sale rule prohibits claiming a loss if you repurchase the same security within 30 days. Consult a tax advisor for your specific situation.
Frequently Asked Questions
In the US, realized losses must occur by December 31 to count for that tax year. Plan ahead — settlement takes 1–2 business days from the trade date.
You can deduct up to $3,000 of net capital losses against ordinary income per year. Any remaining losses carry forward to future tax years.
Only if you don't reinvest. After harvesting, buying a similar (not identical) security maintains market exposure. The tax savings compound over time if invested.