TaxEquiv

Tax Equivalent Yield Calculator with AMT

TEY when state tax is limited under AMT.

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Try: Tax-exempt yield=3.5, Federal bracket=37, State bracket=10, NIIT=0, Investment=10000 → 3.50%, 47.00%, 6.60%, $350, 6.60%

How to use

Under the AMT, some state tax deductions are disallowed, raising the effective federal rate. This shows the TEY using a higher combined rate.

Formula

TEY = y ÷ (1 − (federal + state)), with AMT limiting state relief.

FAQ

Does AMT hit munis?

Interest on public-purpose munis stays tax-free under AMT; private-activity munis may not.

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