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Tax-Loss Harvesting Estimator

Sitting on losing positions? See how much 2026 federal tax you could save by realizing those losses before December 31.

The estimator, run on the example above

The worked example above describes the netting but stops before the dollar tax figure, because that figure depends on your other income. Here it is with the missing input supplied — sample figures only, not tax advice. Take the same $9,000 of realized short-term gains and $4,300 of short-term losses to harvest, and add $85,000 of other taxable income, filing single. The estimator reports tax of $15,392.00 without harvesting and $14,446.00 with it: an estimated saving of $946.00, which is the $4,300 of offset gain taxed at the 22% marginal rate it would otherwise have faced.

Push the losses past the gains and the character of the answer changes. With $2,000 of short-term gains and $7,000 of harvested losses at the same income, the estimator shows a $5,000 net loss: $3,000 deducted against ordinary income in 2026, $2,000 carried forward, and an estimated saving of $1,100.00. The carryforward is not a footnote — it is often the larger half of the benefit, and it exists only if the loss is actually realized and documented by December 31.

Harvesting Estimator

Enter your realized 2026 gains and the losses you'd harvest. Runs 100% in your browser.

Gains on assets held one year or less.
Gains on assets held more than one year.
Unrealized losses you'd lock in by selling in 2026.

Federal estimate using 2026 brackets. Assumes harvested losses are realized by Dec 31, 2026. State tax not included. Educational use only — not tax advice.

How tax-loss harvesting works

  1. Identify losers. Find positions trading below what you paid.
  2. Sell before year-end. Only realized losses count — paper losses don't.
  3. Losses offset gains. Same-type gains first, then opposite-type, then up to $3,000 of ordinary income ($1,500 if married filing separately). Leftovers carry forward indefinitely. See IRS Topic 409.
  4. Mind the calendar. A sale on January 1 counts for next year, not this one.
Wash salesThe wash-sale rule currently applies to stocks and securities. The IRS has not extended it to cryptocurrency — but Congress has repeatedly proposed doing so. If you sell at a loss and immediately rebuy, check the current law first.

A worked example

Suppose that by October you have realized $9,000 of short-term gains from trades earlier in the year, and you hold two positions that are under water: one bought for $6,000 and now worth $2,500, another bought for $4,000 and now worth $3,200. Selling both before December 31 realizes $4,300 of losses ($3,500 and $800). Enter $9,000 of short-term gains and $4,300 of harvested losses and the estimator shows a net short-term gain of $4,700, nothing left over to deduct against ordinary income, and no carryforward. The tax saved is the tax you would have paid on the $4,300 at your short-term rate, which for most filers is their ordinary income rate; the estimator shows that figure for the filing status you select.

Change the facts: gains of $2,000 and the same $4,300 of losses. Now the net is a $2,300 loss. Up to $3,000 of net capital loss can be deducted against ordinary income in a year, so all $2,300 is deductible this year and nothing carries forward. With $7,000 of losses against the same $2,000 of gains, $3,000 is deductible this year and $2,000 carries forward to next year, where it offsets gains first and then ordinary income again. The estimator does this arithmetic so you can see which positions are worth selling and which can wait.

What the estimator does not model

  • Short-term versus long-term ordering in detail. The IRS nets short-term against short-term and long-term against long-term before netting across. The estimator follows that rule for the totals you enter, but it cannot see individual lots; if you have both kinds of gains, enter them separately.
  • Which lots you sell. If you own the same coin bought at several prices, the loss you realize depends on which units you are treated as selling, and the broker-reporting rules now constrain how that choice is documented. See cost-basis methods.
  • State income tax, the net investment income tax, and any phase-outs elsewhere on your return that a change in income might trigger.
  • Transaction costs. Selling and later repurchasing costs fees and spread; a small harvested loss can be eaten by them.
  • Wash-sale status. As the callout above says, the rule currently covers stocks and securities and has been proposed for digital assets more than once. If you plan to repurchase the same asset soon after selling, read the current guidance or ask a professional before relying on the loss — our crypto wash-sale rule guide tracks where the rule stands.

Used for what it is, a planning estimate, the tool tells you whether harvesting is worth the effort this year and roughly how much. Used as a return-preparation tool, it is the wrong instrument; the software comparison covers the right ones.

Related: Crypto tax calculator · 2026 capital gains rates · Are crypto losses tax deductible? · Tax-loss harvesting in 2026

Frequently asked questions

Not under current IRS guidance. The wash-sale rule currently applies to stocks and securities, and the IRS has not extended it to cryptocurrency — but Congress has repeatedly proposed doing so. If you sell at a loss and immediately rebuy, check the current law first.
Losses first offset capital gains, with no cap on that offset. If losses still exceed gains, you can deduct up to $3,000 of the net loss against ordinary income per year — $1,500 if married filing separately.
They carry forward indefinitely. In each later year, carried-forward losses offset capital gains first and then up to $3,000 of ordinary income, until the loss is used up.