Tax-Equivalent Yield Calculator
Compare tax-exempt municipal bonds with taxable bonds to find the better after-tax investment.
Investment Details
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Tax-Equivalent Yield shows what taxable yield you would need to match the after-tax return of a tax-exempt municipal bond.
Tax-Equivalent Yield
5.54%
equivalent taxable yield needed
Combined Tax Rate
27.8%
After-Tax Taxable Yield
4.33%
Recommendation
The taxable bond is better by 0.46%
At your tax bracket, the 4% municipal bond equals a 5.54% taxable yield.
Yield Comparison
Tax-Exempt Yield4%
Tax-Equivalent (Fed Only)5.26%
Tax-Equivalent (Combined)5.54%
Taxable Yield Compared6%