Envestnet Tax Service Claims 1.96% After-Tax Gain for 2025

The Berwyn-based wealth technology firm reports that its tax overlay service now manages approximately $26 billion in assets, reflecting a three-year compound annual growth rate of 29%. The program targets high-net-worth clients, typically those with portfolios valued around $2 million, by integrating tax-loss harvesting, capital gains deferral, and tax-lot-level trading into a single interface.

Financial data from the 2025 tax year suggests a significant cost-to-benefit ratio for users. While the average account incurred roughly $1,700 in annual service fees, the firm estimates that participants avoided an average tax liability of more than $25,000. These results were most pronounced in portfolios with high allocations to actively managed sleeves, where the after-tax benefit climbed to 2.34%.

Erik Preus, Group Head of Investment Management at Envestnet, emphasized that the service is designed to move beyond year-end planning by maintaining tax awareness throughout the calendar year. Unlike standard tax-loss harvesting, the system enforces custom capital gains budgets to control the timing of realized gains. Despite these results, the company notes that actual client outcomes depend on individual market conditions and specific account restrictions, and reminds users that the platform does not provide formal tax or legal advice.