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Tax-Loss Harvesting Calculator
Enter your capital loss, your existing gains, and your federal tax rates to see your estimated tax savings, the wash-sale repurchase window, and any loss carryforward. Federal rates only, not tax advice.
Results
Estimated tax saved$2,540.00
ST gains offset$4,000.00
LT gains offset$2,000.00
Ordinary income offset$3,000.00max $3,000 / year
Loss carryforward$1,000.00
Federal rates only. Excludes state tax, NIIT (3.8%), and AMT. This is math, not tax advice, consult a tax professional before acting.
How it is calculated
Short-term loss offsets (held ≤ 1 year):
step 1: offset short-term gains (taxed at ordinary rate) step 2: offset long-term gains (taxed at LT rate) step 3: offset ordinary income (up to $3,000 / year) step 4: remainder = carryforward to future years
Long-term loss offsets (held > 1 year):
step 1: offset long-term gains (taxed at LT rate) step 2: offset short-term gains (taxed at ordinary rate) step 3: offset ordinary income (up to $3,000 / year) step 4: remainder = carryforward
Tax saved:
tax saved = (ST gains offset × ordinary rate)
+ (LT gains offset × LT rate)
+ (ordinary income offset × ordinary rate)Wash-sale window: sale date + 31 calendar days. You cannot buy the same or a substantially identical security within 30 days before or after the sale without losing the deduction.
Frequently asked questions
What is tax-loss harvesting?
Tax-loss harvesting means selling a losing position to realize a capital loss, then using that loss to offset capital gains elsewhere in your portfolio. If your losses exceed your gains, up to $3,000 of the remaining loss can offset ordinary income each year. Any unused loss carries forward to future tax years.
How does short-term vs long-term loss work?
Short-term losses (positions held one year or less) first offset short-term gains, then long-term gains. Long-term losses (positions held more than one year) first offset long-term gains, then short-term gains. This matters because short-term gains are taxed at ordinary income rates, which are typically higher than the preferential long-term capital gains rates.
What is the wash-sale rule?
The IRS wash-sale rule disallows the tax loss if you buy the same or a substantially identical security within 30 days before or after the sale. This calculator shows the earliest date you can repurchase the security without triggering the wash-sale rule, 31 calendar days after the sale date you enter.
Does this calculator handle state taxes?
No. This calculator uses federal rates only. State capital gains tax varies widely and is not included. Your actual tax savings will differ if you owe state tax on capital gains. Consult a tax professional for a complete picture.
What is capital loss carryforward?
If your total capital losses exceed your capital gains plus the $3,000 ordinary income deduction in a given year, the remaining loss carries forward to future tax years. You can use the carryforward to offset gains or the annual $3,000 income deduction in those future years, indefinitely until it is fully used.
Federal rates only. Excludes state tax, NIIT, and AMT. Educational information, not tax or investment advice.