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Tax-Equivalent Yield Calculator
Convert a municipal bond yield into the taxable yield needed to produce the same after-tax income.
Taxable equivalent yield
6.25%Uses the entered marginal rate only. State, local, and alternative minimum tax treatment can change the comparison.
About this tool
How it works
Divides the tax-exempt yield by one minus the entered marginal tax rate.
A practical way to use it
Compare a 4% municipal bond with taxable alternatives at a 32% marginal federal rate.
Use results as a practical aid, and verify important decisions against your own source data and qualified guidance.