TaxEquiv

Tax Equivalent Yield Calculator California

TEY including California’s ~13.3% top state bracket.

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Try: Tax-exempt yield=3.5, Federal bracket=24, State bracket=13.3, NIIT=0, Investment=10000 → 3.50%, 37.30%, 5.58%, $350, 5.58%

How to use

California taxes municipal interest from other states, so its high bracket pushes the taxable equivalent yield up sharply.

Formula

TEY = y ÷ (1 − (federal + 13.3%))

FAQ

Are CA munis exempt in CA?

Yes — interest from California issues is exempt from CA tax, but out-of-state munis are not.

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