Menu Investment & Resource Planning 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. This communication is strictly intended for individuals residing in the states of AZ, CA, CO, DC, DE, FL, GA, MD, ME, MS, NC, NH, NJ, NM, NV, NY, OR, PA, TN, VA, VT, WA, WV. No offers may be made or accepted from any resident outside the specific state(s) referenced. Securities offered through FSC Securities Corporation a Registered Broker Dealer, member FINRA/SIPC. Advisory Services offered through Investment & Resource Planning Associates, Inc. a Registered Investment Advisor, independent of FSC Securities Corporation Please Note: When you link to any of the websites displayed within this website, you are leaving this website and assume total responsibility and risk for your use of the website you are linking to. We make no representation as to the completeness or accuracy of any information provided at these websites. Privacy Policy Site Map Check the background of this financial professional on FINRA's BrokerCheck