Taxable Equivalent Yield  

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 municipals are free of federal taxes. Because of this, the stated interest rate on municipals 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:

     

What is your federal income tax bracket?

What is the yield (in percentage points, 0 to 10 percent) on the municipal bond you are considering?

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Professional Benefits, Inc.
One North Tuttle Avenue, Ste. 5
P.O. Box 1079		 • Sarasota, FL • 34237
Phone: (941) 957-1310 or
1-800-741-5170		 • Fax: (941) 366-5170 or
1-866-366-5170 (Florida only)
• Debra@professionalbenefits.org

*Securities and advisory services offered through Registered Representatives of SII Investments, Inc. (SII), Member FINRA, SIPC and a Registered Investment Advisor.  Professional Benefits, Inc. and SII are separate companies. SII does not offer tax or legal advice.

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