Tax Gain Harvesting Calculator 2026 β Harvest Gains at 0% Capital Gains Tax
Calculate how much capital gain you can realize tax-free in the 0% LTCG bracket. See your room remaining, basis step-up, and future tax savings from strategic gain harvesting.
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After standard/itemized deduction and all above-the-line deductions $
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Gain to Harvest Tax-Free
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Room Remaining in 0% Bracket
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New Cost Basis After Harvest
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Future Tax Saved
Tax Gain Harvesting Calculation
How Tax Gain Harvesting Works
The strategy is simple: if your taxable income is below the 0% LTCG threshold, you can sell appreciated investments, pay zero tax on the gain, and immediately repurchase the same investment. Your new cost basis is higher, permanently reducing future taxes.
The Formula
0% bracket room = 0% threshold β taxable income before gains
Gain available = FMV β cost basis (must be long-term, held > 1 year)
Gain to harvest = min(0% bracket room, gain available)
New cost basis = old basis + harvested gain
Future tax saved = harvested gain Γ future LTCG rate
Gain available = FMV β cost basis (must be long-term, held > 1 year)
Gain to harvest = min(0% bracket room, gain available)
New cost basis = old basis + harvested gain
Future tax saved = harvested gain Γ future LTCG rate
Example
Single filer, $35,000 taxable income, investment: $20,000 basis β $35,000 FMV ($15,000 gain):
0% bracket ceiling: $49,450 (single, 2026)
Room remaining: $49,450 β $35,000 = $14,450
Gain available: $15,000
Gain to harvest: min($14,450, $15,000) = $14,450 at 0% tax
New cost basis: $20,000 + $14,450 = $34,450
Future tax saved at 15%: $14,450 Γ 15% = $2,168
0% bracket ceiling: $49,450 (single, 2026)
Room remaining: $49,450 β $35,000 = $14,450
Gain available: $15,000
Gain to harvest: min($14,450, $15,000) = $14,450 at 0% tax
New cost basis: $20,000 + $14,450 = $34,450
Future tax saved at 15%: $14,450 Γ 15% = $2,168
Extended
5-Year Harvesting Plan
Project a 5-year strategic gain harvesting plan showing cumulative basis step-up and future tax savings
Project a 5-year systematic gain harvesting plan. Each year assumes income stays similar and the investment continues to grow.
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5-Year Strategic Gain Harvesting Plan
| Year | Taxable Income | 0% Room | FMV | Gain Harvested | Tax Paid | New Basis | Future Tax Saved |
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Frequently Asked Questions
What is tax gain harvesting?
Tax gain harvesting is the strategy of intentionally selling appreciated investments when your taxable income is low enough to fall in the 0% long-term capital gains tax bracket. By selling and immediately rebuying, you reset your cost basis to a higher value, reducing future capital gains taxes when you eventually sell for good. Unlike tax-loss harvesting (which reduces current taxes), tax gain harvesting reduces future taxes.
What is the 0% long-term capital gains bracket for 2026?
For 2026, you pay 0% federal tax on long-term capital gains if your taxable income (after deductions) does not exceed $49,450 for single filers or $98,900 for married filing jointly. Income above these thresholds is taxed at 15% (up to $545,850 single / $600,050 MFJ) or 20% above that.
Can I sell and immediately rebuy the same investment for tax gain harvesting?
Yes. Unlike tax-loss harvesting (which has the 30-day wash-sale rule), there is no wash-sale rule for gains. You can sell an appreciated investment, immediately rebuy the same fund or stock, and the new purchase establishes a stepped-up cost basis. The gain is recognized immediately (at 0% tax) and your future taxable gain is permanently reduced.
Does tax gain harvesting affect my ordinary income tax bracket?
Long-term capital gains are taxed separately from ordinary income but are added to your taxable income for bracket purposes. When calculating how much gain you can harvest, use your taxable income after ordinary deductions. The gains fill up the remaining space in the 0% bracket. Be careful not to push your total income (ordinary + gains) above the 0% threshold.
Is tax gain harvesting only for stocks?
No. Tax gain harvesting applies to any long-term capital asset held more than one year: individual stocks, ETFs, mutual funds, real estate (though real estate has different rules), and other investment property. Index ETFs and mutual funds are particularly good candidates because you can immediately rebuy a nearly identical fund without triggering the wash-sale rule.