Crypto and Investment - United States

    Day Trading Tax Calculator

    Estimate federal tax from short-term trading results and model the effect of disallowed wash-sale losses.

    Tax year: 2026Last updated: May 23, 2026Short-term gains taxed at ordinary ratesWash-sale adjustment inputCapital loss offset cap awareness
    Inputs

    Configure your scenario

    Enter trading P/L, other income, and wash-sale adjustments for a tax estimate.

    Adjusted P/L

    $25,000

    Incremental tax

    $5,500

    Loss offset

    $0

    Breakdown

    Detailed estimate

    Adjusted short-term gain/loss used
    $25,000
    Incremental federal tax from gains
    $5,500
    Capital-loss offset against ordinary income
    $0
    Post-adjustment taxable-income base
    $105,000
    FAQ

    Day trading tax - quick answers

    Why are day-trading profits often taxed higher than long-term gains?+

    Most day-trading gains are short-term and generally taxed at ordinary income rates.

    What is a wash sale impact?+

    A wash sale can defer loss recognition and increase current-year taxable gain if replacement purchases occur within the IRS wash-sale window.

    Sources & Act Reference

    Day-trading model references

    Short-term character

    Short-term trading gains are generally taxed as ordinary income.

    Wash-sale effect

    Disallowed wash-sale losses are generally added to basis and can delay loss benefit.

    Rule Trace

    Applied rule and official references

    Applied rule: net short-term gain flows through ordinary federal bracket schedules; losses may offset gains and then up to annual cap

    Compliance checklist

    Reconcile broker 1099-B, lot-level basis adjustments, and wash-sale details before filing.

    Smart Insight

    Estimated incremental federal tax from trading is $5,500.