Capital Gains Harvesting Calculator (2026 Tax Cliff)
Calculate your 0% capital gains bracket headroom before the 2026 Tax Cliff. Learn how to step up your investment basis tax-free and optimize your future retirement withdrawals.
Tax-Free Basis Step-Up (2025)
Capital Gains Harvesting (CGH) is one of the most powerful tax strategies for early retirees and those in 'gap years'.
By resetting your cost basis to current market value today, you avoid paying capital gains tax on that growth when you eventually withdraw the funds in the future.
0% Capital Gains Thresholds
Thresholds are based on total taxable income (ordinary income + gains).
| Tax Year | Single | Married (Jointly) | Status |
|---|---|---|---|
| 2024 | $47,025 | $94,050 | Confirmed |
| 2025 | $48,350 | $96,700 | Confirmed |
| 2026 | $49,450 | $98,900 | Estimated* |
Harvesting Comparison
Tax-Loss Harvesting
Sell at a Loss to offset gains or up to $3,000 of ordinary income.
Wash Sale Rule: Must wait 30 days to buy back.
Capital Gains Harvesting
Sell at a Profit in 0% bracket to "reset" basis higher.
Wash Sale Rule: None. Buy back immediately.
How to Use This Calculator
Enter Your Income
Input your estimated taxable income for the current year. This determines how much 'room' you have in the 0% capital gains bracket.
Detail Your Gains
Enter the unrealized gains sitting in your taxable brokerage accounts. We'll find the optimal amount to harvest.
See Your Savings
The calculator will show you the exact amount of basis step-up you can achieve today, and your estimated future tax savings.
Mastering Tax Efficiency
Harvesting gains today is a gift to your future self.
No Wash Sale Rule
Unlike tax-loss harvesting, you can immediately buy back the exact same asset. There is no 30-day waiting period for gains.
Headroom Limit
The 0% bracket is a 'bucket'. Your regular income fills it first, then your gains. Going $1 over the limit makes that dollar taxable.
State Taxes
While federal tax may be 0%, most states treat capital gains as ordinary income. Always check your state's tax laws.
NIIT Threshold
High earners should watch out for the Net Investment Income Tax (NIIT), though harvesting usually targets those below the 0% bracket.
Take Your Plan to the Next Level
This calculator is just one piece of the puzzle. Use our full Financial Independence Simulator to unite your income, investments, and expenses into a single, interactive roadmap.
Related Tax Strategies
Combine harvesting with these other planning tools for maximum impact.
Frequently Asked Questions
Capital gains harvesting is a strategy where you sell investments with long-term capital gains when your income is low enough to fall into the 0% capital gains tax bracket, and then immediately repurchase them. This 'steps up' your cost basis without incurring any tax, saving you money on future withdrawals.
For the 2025 tax year, the 0% long-term capital gains rate applies to taxable income up to $48,350 for single filers and $96,700 for married filing jointly.
Tax-loss harvesting involves selling assets at a loss to offset other income. Capital gains harvesting involves selling assets at a profit during low-income years to step up your basis tax-free. Importantly, there is no 'wash sale' rule for harvesting gains, meaning you can buy back the asset immediately.
Yes, in many cases. While your federal capital gains tax might be 0%, most states treat capital gains as ordinary income and do not have a corresponding 0% bracket. Always check your specific state's tax laws.
Yes. The IRS 'wash sale' rule only applies to capital losses. When you sell for a gain, you can repurchase the same security (or a substantially identical one) immediately to reset your cost basis higher.
The 0% bracket is not an 'all or nothing' cliff for the gains themselves. Only the portion of your capital gains that exceeds the threshold will be taxed at the 15% rate. However, increasing your income can impact other things like ACA subsidies or IRMAA.
Yes. Harvested gains increase your Adjusted Gross Income (AGI). Medicare uses your AGI from two years prior to determine if you must pay an Income Related Monthly Adjustment Amount (IRMAA) surcharge on your premiums.
Generally, yes. If you can step up your basis at 0% now, you lock in those 'tax-free' gains. Even if you are in a higher bracket later, you will only pay tax on the growth that occurs *after* your basis was reset.