Investing to maximize after-tax income. The table below will help you determine the amount of income you require from a taxable investment to equal the yield on a tax-exempt bond. The table is for illustrative purposes only and is not intended to be representative of any specific security. To use the table most effectively, follow these directions. Determine your tax bracket by locating the taxable income category that you fall into.
Taxable income is income after appropriate exemptions and deductions are taken.
The numbers in the column under your tax bracket give you the approximate taxable yield equivalent for each of the tax-exempt yields in the near left column. The income brackets to which the tax rates apply are adjusted annually for inflation. Those listed above are for 2001. All reproduction and other rights reserved. The printed version of this Guide is available in bulk from The Bond Market Association's Publications Department .