Due to differences in tax treatment, municipal bonds that provide federally tax-exempt interest income typically yield less than taxable bonds. For the same reason, municipal bonds whose interest is exempt from state and local income tax may yield less than municipal bonds whose interest is taxed in a particular jurisdiction. When considering potential investments in different types of bonds, you should evaluate yields on a tax-equivalent basis, taking into account the different amounts of tax you would owe on the interest earned from each.
This Tax-Equivalent Yield Calculator can help.
Learn More About How Taxes Affect Your Investment Returns
What do I pay in taxes on my investments?
See how the yields of in-state municipal bonds compare with out-of-state municipals and taxable bonds on a tax-equivalent basis.
Calculate Your After-Tax Yield PotentialWhat do I pay in taxes on my investments?
See how the yields of in-state municipal bonds compare with out-of-state municipals and taxable bonds on a tax-equivalent basis.
Calculate Your After-Tax Yield PotentialWhat do I pay in taxes on my investments?
See how the yields of in-state municipal bonds compare with out-of-state municipals and taxable bonds on a tax-equivalent basis.
Calculate Your After-Tax Yield PotentialWhat do I pay in taxes on my investments?
See how the yields of in-state municipal bonds compare with out-of-state municipals and taxable bonds on a tax-equivalent basis.
Calculate Your After-Tax Yield PotentialSTEP 1: Estimate your total tax liability
State Marginal Income Rate
00%
+
Federal Marginal Income Rate
00%
Estimated State Tax Liability
$
00
0%
+
Estimated Federal Tax Liability
$
00
0%
Total Tax Rate
0%
Total Tax Liability
0
STEP 2: Enter In-State Muni Yield
Taxable Yield
0%
$0
%
Following yields are equal on a tax-adjusted basis to in-state muni yield
-
Out-of-State Municipal
% -
Treasury
%Other Taxable Debt
%
