TaxEquiv

Tax Equivalent Yield Calculator 35% Bracket

TEY when your top federal bracket is 35%.

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Try: Tax-exempt yield=3.5, Federal bracket=35, State bracket=0, NIIT=0, Investment=10000 → 3.50%, 35.00%, 5.38%, $350, 5.38%

How to use

At 35% federal, the taxable equivalent yield is roughly 54% above the muni yield.

Formula

TEY = y ÷ (1 − 0.35)

FAQ

Should I always prefer munis?

If muni yields are close, yes — but compare after-tax totals, not just rates.

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