Tax Equivalent Yield Calculator
Convert a tax-free municipal yield into the taxable yield you would need to match it.
Your numbers never leave your browser — all tax math runs locally, no account, no trackingTry: Tax-exempt yield=3.5, Federal bracket=24, State bracket=5, NIIT=0, Investment=10000 → 3.50%, 29.00%, 4.93%, $350, 4.93%
How to use
Enter the tax-exempt yield, your federal and state brackets, and any NIIT. The calculator divides the exempt yield by one minus your combined marginal rate to get the taxable equivalent yield (TEY).
Formula
TEY = tax-exempt yield ÷ (1 − combined marginal rate)
FAQ
Why does this matter?
A 3% muni can beat a 5% taxable bond once your top tax rate is high enough.
What is the combined marginal rate?
Your federal bracket plus state bracket plus the 3.8% NIIT, capped where shown.
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