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Tax Equivalent Yield Calculator

This tax equivalent yield calculator will estimate the tax-equivalent yield, or TEY, for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in the state of residence, you can also avoid state income taxes. Use this tax equivalent yield calculator to determine the yield required by a fully taxable bond to earn the same after tax income as a municipal bond.

Municipal Bond Tax Equivalent Yield Calculator

Federal tax filing status

Tax Equivalent Yield

6.410%

A 5.000% municipal bond yield has a 6.410% tax equivalent yield when exempt from both federal and state income taxes.
Federal tax rate

22.000%

Federal only TEY

6.410%

Chart

Bar chart with 3 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying Yield (%). Data ranges from 5 to 6.4102564102564115.
End of interactive chart.

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