Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated May 15, 2024
This article has been fact checked and reviewed as per our editorial policy.

Best Free Tax Loss Harvesting Tool 2024

Facing a mammoth crypto tax bill? A free tax loss harvesting tool can help you identify and harvest your losses, slashing your taxable gains. This updated guide explores the best free tax loss harvesting tools available in 2024.

Whether you’ve got losses piling up or a looming capital gains tax bill - a free tax loss harvesting tool can help you optimize your tax position. Tax loss harvesting is a strategy used by those in the know to reduce their taxable gains by deliberately selling off crypto at a loss, but what about those new to the crypto market or who don’t have an accountant to do the calculations for them?

That’s where a free crypto tax loss harvesting tool comes in! A good crypto tax loss harvesting tool should be able to:

  • Let you preview a free tax summary for the financial year

  • Identify your unrealized gains and losses

  • Break down gains and losses into short vs. long-term

  • Simulate sales to help you preview how it would impact your tax bill

While there’s only a small handful of crypto tax loss harvesting tools out there, they’re powerful tools when used right - so let’s compare to figure out which is the best of the best.

Want to learn more about crypto tax loss harvesting before you dive in? Check out our crypto tax loss harvesting guide.

What’s the best crypto tax loss harvesting tool?

PlatformFree crypto tax loss harvesting tool?Preview unrealized gains and losses?Free tax preview?Breaks down short vs. long-term gains/losses?Simulates sales?
Koinly✔ (excluding Canadian users)✔ (excluding Canadian users)
CoinLedger✘ only with paid plan✔ (in BETA)✘ only with paid plan
ZenLedger✘ only with paid plan✔ up to 25 transactions, or paid plan
CoinTracking✔ up to 200 transactions, or paid plan
Blockpit✘ only with paid plan✘ only with paid plan
CoinTracker✘ only with paid plan✘ only with paid plan
CryptoTaxCalculator✘ only with paid plan✘ only with paid plan
Coinpanda✔ up to 25 transactions only, or paid plan
TokenTax✘ only with paid plan✘ only with paid plan✘ only with paid plan

As you can see, there’s only one tool that includes all the features you need, free of charge, to effectively optimize your tax bill without a low transaction limit - and that’s Koinly. In particular, Koinly is the only tool that also lets you simulate sales within our app, so you can easily see how it would impact your gains/losses for the year without getting the calculator out. As well as this, many of the other tools don’t factor in how long you’ve held your crypto, and this matters because the majority of tax offices dictate that you must offset your losses in a particular order against gains. 

Koinly’s tax optimization dashboard was launched in 2024, so it’s up to date with the most recent IRS crypto tax rules to help you stay compliant. Let’s take a look at how Koinly’s free crypto tax loss harvesting tool works.

How does a free crypto tax loss harvesting tool work?

Koinly is a portfolio tracker - so it needs read-only access to the wallets, exchanges and blockchains you use in order to calculate your tax liability, and identify your unrealized gains and losses. You can find a wealth of information on how to set up your Koinly account in our help guides, but in summary:

  1. Sign up to Koinly free

  2. Connect all the exchanges, wallets, and blockchains you use via API or by uploading a CSV file

  3. Koinly will calculate your gains, losses, income, and more, as well as identify unrealized gains and losses in your investment portfolio

  4. Preview your tax liability and find unrealized losses in your tax optimization dashboard

Once you’re set up with your exchanges, wallets, and blockchains connected to Koinly, head to the tax report page to see your free tax summary and understand your tax liability.

As you can see in our example, there’s a sizeable gain and, as such, a sizeable tax bill! We want to reduce that tax bill if possible - so we’ll head over to our dashboard to find Koinly’s tax optimization tool.

Over on the tax optimization dashboard, you can see where Koinly really shines. You’ll be able to view different assets, as well as the loss generated if these assets were sold or otherwise disposed of. 

These calculations also consider how long you’ve held the asset, so we can understand whether it would impact our short or long-term gains, as investors need to offset these in a particular order.

If we selected all our losses, we can simulate the total losses we’d generate if we sold those assets. In our example, more than $1,400 in losses. We could offset these against long-term gains in order to reduce our overall taxable gains.

Koinly’s tax optimization dashboard can also help you harvest gains. Just toggle on ‘assets with positive gains’ in order to view any unrealized gains. Similarly, you can use the tool to simulate sales and understand how it would impact your tax liability.

Read next: Dive even deeper with our help article.

More resources

Not in the states? We’ve got guides on cutting your tax bill for other countries, including:

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When do I need to harvest my crypto losses in the US?
When do I need to harvest my crypto losses in the UK?
When do I need to harvest my crypto losses in Australia?
When do I need to harvest my crypto losses in Canada?
The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.