Menu Alpine Capital Partners connect 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. A Colorado Registered Advisory Firm. May also do business in other states subject to that state's laws and regulations. Alpine Capital Partners, LLC Site Map Back To Top Check the background of this financial professional on FINRA's BrokerCheck