Taxable-Equivalent Yield Calculator (Munis)
What a taxable bond must yield to match a tax-exempt municipal — federal plus optional state tax, in-state munis.
Formula
For a 35% federal bracket a 3.45% muni equals a ~5.3% taxable yield. The state layer applies only when the muni is exempt in your state (usually in-state issues). High brackets are why munis can yield less than Treasuries and still win after tax.
Not tax advice — confirm your marginal rates and AMT exposure with a tax professional. Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need taxable-equivalent yield calculator results fast? Analysts, founders, traders and finance professionals use the Taxable-Equivalent Yield Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Taxable-Equivalent Yield Calculator (Munis)
What a taxable bond must yield to match a tax-exempt municipal — federal plus optional state tax, in-state munis. For a 35% federal bracket a 3.45% muni equals a ~5.3% taxable yield. The state layer applies only when the muni is exempt in your state (usually in-state issues). High brackets are why munis can yield less than Treasuries and still win after tax. The governing relationship is TEY = y_muni / (1 − t). The Taxable-Equivalent Yield Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Taxable-Equivalent Yield Calculator (Munis)
- 1Enter Muni (tax-free) yield (%), Federal marginal rate (%), State marginal rate (%), Muni exempt from state tax? into the Taxable-Equivalent Yield Calculator.
- 2The result is computed automatically using TEY = y_muni / (1 − t) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Taxable-Equivalent Yield Calculator (Munis)?
- ✓Computes taxable-equivalent yield calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Taxable-Equivalent Yield Calculator?+
Taxable-Equivalent Yield Calculator uses TEY = y_muni / (1 − t). For a 35% federal bracket a 3. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Taxable-Equivalent Yield Calculator need?+
Enter Muni (tax-free) yield (%), Federal marginal rate (%), State marginal rate (%), Muni exempt from state tax? and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Taxable-Equivalent Yield Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. Not tax advice — confirm your marginal rates and AMT exposure with a tax professional. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Taxable-Equivalent Yield Calculator?+
45% muni equals a ~5.3% taxable yield. The state layer applies only when the muni is exempt in your state (usually in-state issues). High brackets are why munis can yield less than Treasuries and still win after tax.
What is the Taxable-Equivalent Yield Calculator based on?+
The method follows authoritative sources: MSRB investor education — taxable-equivalent yield. The formula and references are shown on the page so you can verify and cite the result.
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