An extra 1.8% on top of your returns?
Meet Tax-Loss Harvesting.
Tax-Loss Harvesting helps turn a dip in the market into a tax deduction. When you claim a loss on an investment you can lower your tax bill at the end of the year, which means more money to reinvest. On average, we can add an extra 1.8% to your after-tax return, every year.
Our secret recipe? Homemade automation.
We’re constantly looking for those magic ingredients that can help lower your taxes. Here’s how it works.

Part 1:
We identify the loss
Pretend your investments are slices of pie. A slice of rhubarb pie goes for a premium — $10. But soon, the market is flooded with rhubarb and the price falls to $5.
Part 2:
We harvest the loss
Thanks to our super-smart software, we find some delicious gooseberry pie for just $5, so we sell your rhubarb and buy gooseberry instead. Pie is pie, so really, your risk appetite doesn’t change. Different, but still dessert.


Part 3:
We help lower your taxes
While we wait for the baked desserts sector to rebound (give it time), you can use the $5 loss as a deduction to help lower your taxes — money you now have to reinvest (i.e., buy more pie). And there it is — we’ll keep trading slices to keep lowering your taxes. At every chance we have.
Tax-Loss Harvesting benefits will vary. Wealthfront doesn’t provide tax advice.

Sometimes it pays to do it yourself.
Not this time.
Self-managed portfolio | ||
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Looks for Tax-Loss Harvesting opportunities daily | Good luck! | |
TLH that takes zero human effort | False | |
Automatic reinvesting and rebalancing | ||
Actually invented automated Tax-Loss Harvesting | ||
Can earn you more than 6x our fee, while you do nothing |
Taxes are annoying. Let’s break it down.
Learn more at our help center.