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Wealthfront Harvested $1.5 Billion in Losses To Lower Clients’ Taxes In 2022

Fang Rui, CFA

March 6, 2023

Last year was challenging for financial markets. At Wealthfront, we know it can be gut-wrenching to watch the value of your investing account decline, even if it’s only temporary. However, if you were a Wealthfront client in 2022, all of that volatility had a significant silver lining in the form of Tax-Loss Harvesting. Last year alone, Wealthfront harvested $1.5 billion of losses to help clients lower their taxes (with $2.8 billion harvested over the last five years and nearly $3.2 billion over the life of the service). If you multiply that $1.5 billion in harvested losses by an assumed marginal tax rate of 37.5%, you get an estimated $562.5 million in potential tax savings for Wealthfront clients last year.

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