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Investment · Tool

Tax Equivalent Yield

Calculate tax-equivalent yield for municipal bonds.

Municipal bond yield
%
Federal tax
%
State tax
%
Taxable bond (comparison)
%
Combined tax rate0%
Annual tax savings0%

The tax-equivalent yield (TEY) is the return a taxable bond would need to match the after-tax yield of a tax-exempt municipal bond.

Tax-equivalent yield
0 %
Yield needed to match muni bond
PNG · made in your browser, nothing uploaded
Industry use cases
High-Income Investor Calculate whether a municipal bond's tax-equivalent yield exceeds available taxable bond returns in a top tax bracket.
Portfolio Manager/Advisor Compare municipal versus taxable bond after-tax yields to build tax-efficient investment portfolios for clients.
Retiree Tax Planning Evaluate municipal bonds to structure tax-free retirement income while minimizing federal and state tax burden.
High-Tax-State Resident Analyze in-state municipal bonds to maximize the combined federal and state tax exemption benefit.
Related in Investment
Capital Gains Yield → Dividend Discount Model → Leverage Profit Calculator → Butterfly Spread Profit →
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