About the Tax Gain Harvesting Calculator
Tax gain harvesting means selling investments with long-term gains in a year when your taxable income is low enough that those gains fall in the 0% federal capital gains bracket, then immediately buying them back to reset your cost basis higher. This calculator shows how much room you have in the 0% bracket for 2026, how much of your unrealized gain fits in it, and the tax you would pay if you realized more.
For 2026 the 0% rate applies to long-term gains and qualified dividends while total taxable income stays at or below $49,450 for single filers and married filing separately, $66,200 for heads of household and $98,900 for married couples filing jointly. Because the standard deduction ($16,100 single, $32,200 joint, $24,150 head of household in 2026) is subtracted first, a married couple can have well over $130,000 of total income and still harvest some gains tax-free.
It is most useful for early retirees, people between jobs, students and anyone with a low-income year. Gains stack on top of ordinary income, so the calculation needs your other income and deductions. Harvested gains still raise your adjusted gross income, which can affect state income tax, ACA premium credits, Social Security taxation and Medicare IRMAA — check those before you sell. There is no wash-sale rule for gains, so you can buy back the same fund immediately.
With the default inputs, the gains you can harvest at 0% is $56,100.00. Change any value above to recalculate instantly.
How to use the tax gain harvesting calculator
- 1Choose your filing status.
- 2Enter ordinary income for the year, excluding long-term gains and qualified dividends.
- 3Confirm your deductions (standard, age 65+ amounts or itemized).
- 4Enter gains and qualified dividends you already have this year.
- 5Enter the unrealized long-term gains in your taxable account and read how much to harvest.
Formula and method
Taxable income is ordinary income plus long-term gains and qualified dividends minus deductions. Ordinary income fills the brackets first and gains are stacked on top; any gain that lands at or below the 0% limit ($49,450 single or separate, $66,200 head of household, $98,900 joint for 2026) is taxed at 0%. If deductions exceed ordinary income, the unused deduction absorbs gains first, which is why the room formula adds deductions back.
The tax on harvesting everything is calculated by stacking all unrealized gains on top and taxing the part above the 0% limit at 15% (20% above $545,500 single, $613,700 joint, $579,600 head of household, $306,850 separate), minus the tax already due on existing gains. Net investment income tax, state tax and knock-on effects on credits are not included. The future-tax figure assumes you would otherwise sell later at 15%.
- 0% limit
- Maximum zero-rate amount for your filing status (2026)
- Deductions
- Standard (plus age 65+/blind amounts) or itemized deductions, plus other deductions
- Existing gains
- Long-term gains and qualified dividends already realized this year
Worked examples
Married couple with $70k of income
After the $32,200 standard deduction, taxable income is $42,800 including $5,000 of existing gains. The 0% limit is $98,900, leaving $56,100 of room. Harvesting all $60,000 would put $3,900 in the 15% bracket ($585), so stop at $56,100 and lock in $8,415 of future tax savings.
Single early retiree with $30k IRA income
Taxable income is $30,000 − $16,100 + $2,000 = $15,900. The single 0% limit of $49,450 leaves $33,550 of room. Realizing the full $40,000 would tax $6,450 at 15%, or $967.50.
Retired couple, both 65+, low income
The deduction is $32,200 + 2 × $1,650 = $35,500, which exceeds their $20,000 of income; the spare $15,500 also shelters gains. Room is $98,900 + $35,500 − $20,000 = $114,400. Realizing all $150,000 would tax $35,600 at 15%, or $5,340.
Frequently asked questions
What is the 0% capital gains bracket for 2026?+
For 2026, long-term capital gains and qualified dividends are taxed at 0% while taxable income is at or below $49,450 for single and married-filing-separately filers, $66,200 for heads of household and $98,900 for married couples filing jointly.
Is there a wash-sale rule for tax gain harvesting?+
No. The wash-sale rule only disallows losses. You can sell an investment at a gain and buy it back immediately, and your new cost basis is the repurchase price.
Do harvested gains affect anything else?+
Yes. They raise adjusted gross income, which can increase state income tax, reduce ACA premium tax credits, make more Social Security benefits taxable, phase out credits and deductions, and trigger Medicare IRMAA surcharges two years later.
Should I harvest gains or losses?+
Harvest losses when your gains would be taxed at 15% or more; harvest gains when you are in the 0% bracket. In a low-income year, realizing losses can actually waste them by offsetting gains that would have been tax-free.
Do short-term gains qualify?+
No. Only long-term gains on assets held more than a year qualify for the 0% rate. Short-term gains are taxed as ordinary income and should be counted in ordinary income in this calculator.
Does the senior deduction increase my room?+
Yes. The temporary additional deduction of up to $6,000 per person aged 65+ for 2025–2028 lowers taxable income and adds the same amount of 0% room, but it phases out as modified AGI rises. Enter the amount you qualify for under other deductions.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.