Does robo-advisor tax-loss harvesting really add meaningful value?

It can, but the benefit is often smaller and more situational than the marketing suggests. Tax-loss harvesting sells investments at a loss to offset gains and up to 3,000 dollars of ordinary income per year, per IRS rules, deferring taxes into the future. In a taxable account with regular contributions and market volatility, an automated robo can capture losses you'd likely miss on your own, and studies estimate it may add a fraction of a percent to after-tax returns in favorable conditions. But it does nothing in a tax-advantaged account like an IRA, provides less benefit if you're in a low tax bracket, and merely defers rather than eliminates taxes, potentially lowering your cost basis for later. It's a genuine perk for high earners with large taxable balances, less so for everyone else.