Tax-Loss Harvesting Calculator

Tax-Loss Harvesting Calculator exists because the difference between a well-planned tax-loss harvesting decision and a hurried one is often measured in four figures on a single line of Form 1040. Most taxpayers approach tax-loss harvesting once a year during the two-week sprint between receiving their W-2 and clicking "file," which is exactly the moment when marginal optimization is least possible. This calculator is designed to be run months earlier, with enough lead time that you can still change the inputs — bump a Capital Gains Tax Calculator contribution, tweak a withholding setting, or accelerate a sale into a lower-income year.

The reason tax-loss harvesting specifically rewards planning is that the US tax code is piecewise linear: small changes cross thresholds that flip a result by thousands. Examples are everywhere — hitting one more dollar of AGI can phase out a credit, falling one day short on a hold period can double your tax rate, missing a de minimis threshold can unlock or kill a deduction. Run this tool with current numbers, then run it again with the change you're considering, and watch whether you clear the threshold or not. Pair the output with the Crypto Tax Calculator and Net Investment Income Tax (NIIT) Calculator to see how tax-loss harvesting fits the rest of your return.

Use your most recent pay stub, 1099, K-1, or brokerage 1099-B for inputs. The tool will accept any numbers you feed it — including unrealistic ones — so the quality of the output is bounded by the quality of the input. Run the calculator three times: once with conservative assumptions (worst-case income, lowest deductions, highest tax), once with your base case, and once with an optimistic version. The spread between the three tells you how sensitive the tax-loss harvesting answer is to any single variable you might be wrong about.

If the spread is narrow, act on the base case. If it's wide, identify the one input driving the variance and resolve that number before you commit to a strategy. For tax-loss harvesting, the most commonly-wrong inputs are filing status assumptions, MAGI vs. AGI confusion, and forgotten above-the-line adjustments. When tax-loss harvesting touches investing decisions, run the Marginal vs Effective Rate in parallel to see the combined impact.

First, confusing marginal and effective rates. Your marginal rate is what the next dollar will cost; your effective rate is what you actually paid on the whole pile. Deductions save tax at your marginal rate, not your effective rate, so a $1,000 deduction at a 24% marginal bracket saves $240, not $180. Second, treating tax-loss harvesting as a filing-time decision instead of a planning decision — by the time TurboTax opens, most of the levers are frozen. Third, ignoring state tax interactions (some states decouple from federal rules for specific items like bonus depreciation or QBI). Fourth, double-counting a dollar across multiple deductions or credits. Fifth, forgetting the phase-out math.

Phase-outs are where tax-loss harvesting gets nonlinear. A credit might be worth $3,000 at an AGI of $80,000, $1,500 at $90,000, and $0 at $100,000. If you're in the phase-out range, the next dollar of income can cost you more than 100% at the margin once you include the lost credit. The calculator shows you where you land; pair it with the Federal Income Tax Estimator to plan around the cliffs.

This calculator is built against 2025 IRS figures: tax brackets for single and married-filing-jointly, the standard deduction ($14,600 single, $29,200 MFJ), contribution limits ($23,000 401(k) + $7,500 catch-up, $7,000 IRA + $1,000 catch-up, $4,150 HSA self / $8,300 family), the Social Security wage base ($168,600), and the relevant phase-outs for tax-loss harvesting. Where a law adjustment for inflation has been announced, the tool uses the published figure; where the IRS has not yet released a 2025 number, it falls back to the latest confirmed figure with a note.

Tax law changes. The Tax Cuts and Jobs Act provisions that affect tax-loss harvesting are currently scheduled to sunset after 2025, which means a 2026 run of this tool may return a materially different result. Bookmark this page and rerun it after any year-end legislation. Our Rental Income Tax Calculator is updated on the same cadence.

Federal tax-loss harvesting is only one layer. State income tax rules sometimes conform to federal, sometimes decouple partially, and sometimes operate entirely on their own schedule. California, for example, does not conform to federal bonus depreciation or the QBI deduction and has its own AMT. New York caps the SALT deduction differently. Texas and Florida have no state income tax, so tax-loss harvesting decisions that affect federal AGI have no state-level echo. New Jersey treats HSA contributions as taxable at the state level even though they are pre-tax federally.

Before you execute a tax-loss harvesting strategy, check how your state handles the specific item. This calculator models federal only. If your state differs, the real benefit may be 15–25% smaller (when the state taxes what the federal system excludes) or 15–25% larger (when the state mirrors and stacks its own deduction). The Capital Gains Tax Calculator is a good companion for this second-pass state check.

Rerun the calculator whenever any of these change: you move across a state line, you marry or divorce, you have or adopt a child, you inherit money, you start or close a business, a dependent ages out or into a credit window, your income jumps or drops by more than 10%, you sell a major asset, you change jobs, or Congress passes a tax bill. Any one of these can flip a credit on or off, cross a phase-out threshold, or change the optimal withholding level. The 2025 version of tax-loss harvesting is not the 2024 version, and the 2026 version may not be the 2025 version.

On a calendar basis, a tax-loss harvesting check in late October catches most year-end optimization opportunities while the year is still malleable. Run the Crypto Tax Calculator at the same time — the two results often inform the same planning move (accelerate or defer income, bunch deductions, take a Roth conversion, harvest losses).

Beyond the obvious tax-loss harvesting moves, the less-known strategies include: timing deductions into one year rather than spreading them across two to clear the standard-deduction hurdle, using a donor-advised fund to bunch charitable gifts, doing Roth conversions in low-income years (sabbaticals, gap years, early retirement), front-loading a HSA at the beginning of the year for a bigger pre-tax payroll benefit, and coordinating with a spouse to keep one household under a threshold both spouses would individually clear. For business owners, the Section 199A QBI deduction, retirement plan selection, and accountable-plan reimbursements can stack on top of tax-loss harvesting for a meaningful combined benefit.

On the structural side, review whether you're consistently over-withholding (giving the government a zero-interest loan) or under-withholding (owing a penalty at filing). The Net Investment Income Tax (NIIT) Calculator and Marginal vs Effective Rate pair well with this tool to catch both inefficiencies. Target a small refund or small balance-due, not a four-figure mismatch in either direction.

Use this calculator for directional planning. Hire a CPA or EA when your return includes any of these: a K-1 from a pass-through, foreign income, a sale of a business or rental, equity compensation (RSUs, ISOs, ESPP), multi-state residency, a trust or estate, an AMT event, a significant one-time item (inheritance, lawsuit, gambling winnings), or any tax-loss harvesting question that comes down to an interpretive judgment call rather than plugging numbers into a formula.

The cost of a good CPA for a complex return is usually a small fraction of the tax they save, and the return itself is a tax-loss harvesting-proof audit trail if the IRS ever asks. For simpler situations, filing software is fine — but run the numbers here first so you can sanity-check the software's output. If the two are far apart, something in the inputs is wrong.

This is not tax, legal, or financial advice. The calculator is for educational purposes only. tax-loss harvesting outcomes depend on facts specific to you: your state of residence, filing status, dependents, prior-year carryovers, entity structure, and interactions with other credits and deductions that this tool does not model. The formulas here use 2025 IRS figures where published and common-case assumptions where interpretation is required. They are not a substitute for filing software, a licensed CPA, or an enrolled agent. Before you file or make a decision worth more than a few thousand dollars, get professional advice. Tax law also changes mid-year; the numbers above are current as of the most recent update but should be re-verified against IRS.gov before you act.

This tool runs entirely in your browser. Nothing you type is sent to our servers, and nothing is stored after you close the tab. You can run as many scenarios as you like, for as many years as you like, without creating an account. Use the "Export PDF" button to download a clean copy of your inputs and results for your records or to hand to your CPA as a starting point. If there's a tax-loss harvesting feature you wish this tool had, or a related calculator you wish existed, email us via the contact page — we prioritize the build queue based on what real users ask for.