Capital Gains Harvesting Calculator

Calculate tax savings from harvesting gains in the 0% LTCG bracket.
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Net Gain

$7,000.00

Tax Savings

$1,200.00

Harvesting Summary

Gains Offset by Losses$8,000.00
Net Taxable Gain$7,000.00
Deductible Excess Loss$0.00
Loss Carryforward$0.00
Tax on Net Gain (15%)$1,050.00

Use the Capital Gains Harvesting Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This calculator helps you determine the potential tax savings by strategically selling appreciated assets to utilize the 0% long-term capital gains (LTCG) bracket. For 2026, the 0% LTCG bracket applies to taxable income up to $99,650 for married filing jointly, $49,800 for single filers, and $74,900 for heads of household (these thresholds are inflation-adjusted estimates). Understanding this threshold is crucial for minimizing your tax liability on investment gains.

Our calculator works by first identifying your estimated taxable income before capital gains. It then determines how much of your capital gains can be realized within the 0% LTCG bracket without exceeding the applicable income threshold for your filing status. The formula essentially calculates the difference between your 0% LTCG bracket limit and your current taxable income (excluding capital gains), which represents the maximum amount of gain you can harvest tax-free.

A common mistake is forgetting to account for all income sources when estimating your taxable income, potentially pushing you out of the 0% bracket. Remember that capital losses can offset capital gains, but only up to $3,000 against ordinary income annually. Also, consider the Wash Sale Rule; you cannot repurchase a substantially identical security within 30 days before or after the sale if you're taking a capital loss.

Example: Married Filing Jointly, Harvesting Gains

  1. 1 John and Jane have a combined adjusted gross income (AGI) of $80,000 from salaries and other sources. They are married filing jointly and want to harvest some capital gains. They own stock with an unrealized gain of $25,000.
  2. 2 For 2026, the 0% LTCG bracket for married filing jointly is estimated at $99,650. Their current taxable income before capital gains is $80,000. Therefore, the amount of capital gains they can realize at 0% is $99,650 (0% bracket limit) - $80,000 (taxable income) = $19,650.
  3. 3 By selling $19,650 of their appreciated stock, John and Jane will incur $0 in federal long-term capital gains tax on that amount. If they had sold the full $25,000, the remaining $5,350 would be taxed at 15%.
  4. 4 This strategic harvesting allows them to realize a portion of their investment gains completely tax-free, effectively reducing their overall tax burden. This strategy is particularly effective for those with fluctuating incomes or those who can control their income in a given year.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

What is capital gains harvesting?
Capital gains harvesting means intentionally selling appreciated investments in years when you fall in the 0% long-term capital gains bracket (taxable income under $48,475 single or $96,950 married filing jointly for 2026). You realize gains tax-free and rebuy immediately to reset your cost basis higher.
Who benefits from capital gains harvesting?
It benefits people in lower income years, such as early retirees living on savings before Social Security, students, people between jobs, or anyone whose taxable income falls below the 0% LTCG threshold. It is essentially free money from a higher cost basis.
How is capital gains harvesting different from tax-loss harvesting?
Tax-loss harvesting sells losers to offset gains (reducing taxes now). Capital gains harvesting sells winners when your rate is 0% (paying no tax now). Loss harvesting defers taxes; gains harvesting eliminates them permanently by resetting cost basis.

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