skip navigation Home About Us Resources Request A Quote Contact Us Taxable Equivalent Yield Taxable vs. Tax-Exempt Yields Municipal bonds are sold by cities, counties, states and other political bodies (public hospital, school district). The federal government and its agencies do not sell municipal bonds. However, most municipal bonds are free of federal income taxes, although they may be subject to the alternative minimum tax. Because of this, the stated interest rate on municipal bonds is typically lower than comparable non tax-exempt bonds. How much would you have to receive from a taxable bond to realize an equivalent yield? You can find the answer by entering the following information: Your federal income tax bracket: 0 10 12 22 24 32 35 37 The yield (in percentage points, 0% to 10%) on the municipal bond you are considering: 0 2 4 6 8 10 Previous Next Calculate This hypothetical example is used for illustrative purposes only. Actual results will vary. This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2021 Broadridge Investor Communication Solutions, Inc. Please read below for important disclosures about the way we conduct business. We also welcome you to stay and take a look around our site to learn more about who we are and what we do. Securities offered through Cambridge Investment Research, a Broker/Dealer, Member of FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, a Registered Investment Advisor. Planned Futures LLC and Cambridge are not affiliated. This communication is strictly intended for individuals residing in the states of: AL, AZ, CA, CO, DE, FL, GA, KS, LA, MD, MI, MN, MS, NE, NY, NJ, NC, OH, OK, PA, CS, TX, VA, and WV. No offers may be made or accepted from any resident outside of the specific states referenced. Content provided via links to third party sites should not be considered an endorsement to third party content. We make no representations as to the completeness or accuracy of information provided at these websites. Content/postings pertaining to fixed insurance services do not relate to securities or advisory services and are not affiliated with Cambridge. Site Map Check the background of this financial professional on FINRA's BrokerCheck