Municipal Bond Tax Equivalent Yield Calculator
See the taxable-equivalent yield on a municipal bond using your estimated federal marginal rate from taxable income and filing status (2024-style ordinary brackets, simplified), plus your state marginal rate on interest that would otherwise be taxed. Not tax advice; does not include NIIT, AMT, or state-specific muni rules.
Tax equivalent yield
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Federal tax rate (marginal)
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State income tax rate
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Federal only TEY
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Municipal bond yield
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Yield comparison
Municipal yield versus tax-equivalent yields
How to Use This Calculator
- Enter the municipal bond yield, your estimated federal taxable income (used only to pick a marginal bracket), state rate on interest you would pay on a taxable bond, and filing status.
- We compute federal-only and federal + state tax-equivalent yields so you can compare munis to taxable alternatives in your bracket.
- Click Calculate to refresh all figures and the comparison chart.
Frequently Asked Questions
Why is my federal rate an estimate?
We map taxable income into simplified 2024 ordinary income brackets by filing status. Your actual marginal rate can differ (AMT, NIIT, deductions, etc.).
Are municipal bonds always state-tax-free?
Often in-state munis are exempt from that state’s tax; out-of-state rules vary. This tool only applies the state rate you enter.
