This tax equivalent yield calculator will estimate the tax-equivalent yield, or TEY, for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in the state of residence, you can also avoid state income...
Tax-free investments such as municipal bonds have lower yields due to their tax-exempt status. Use this calculator to determine an equivalent yield on a taxable investment. The higher your marginal tax bracket (state and federal), the higher the tax-equi
The Tax Equivalent Yield Calculator compares the yield of a tax free bond to a taxable bond, to determine which security returns the higher yield. The calculator takes into consideration the marginal federal and state tax rates of the investor. The resulting equivalent yields are computed for ...
2025 federal income tax calculator Should I adjust my payroll withholdings? Will my investment interest be deductible? How much self-employment tax will I pay? Capital gains (losses) tax estimator Compare taxable, tax-deferred, and tax-free investment growth How much of my social security benefit...
The Tax Equivalent Yield Calculator compares the yield of a tax free bond to a taxable bond, to determine which security returns the higher yield. The calculator takes into consideration the marginal federal and state tax rates of the investor. The resulting equivalent yields are computed for each...
"currently, investment grade municipals offer approximately 2.0% more yield than treasury bonds on a tax-equivalent basis, which is 0.60% above long-term average," says bill merz, head of capital market research for u.s. bank asset management group. this assumes the top federal income tax ...
Tax-Equivalent Yielddoi:10.1007/0-387-26336-5_2028Tax-exempt interest yield converted to a pretax taxable equivalent by dividing the nominal rate by 1 minus the investor's marginal income tax rate.Springer USEncyclopedia of Finance
If you’re looking for your own taxable equivalent yield, you can hop over to NVG’s website here andclick the link on the left side of your screen(it’s the green text below the fund name that says “Taxable Equivalent Yield”) to bring up this calculator: ...
The tax-equivalent yield is the return a taxable bond needs to equal the yield on a comparable tax-exempt bond, such as a municipal bond. Investors compare the returns between a tax-free investment and a taxable alternative. The value of a tax-equivalent yield to an investor depends on an...
So, when considering munis, investors should compare the yields of taxable investment-grade and government bonds by using thetax-equivalent-yield formula. Tax-equivalent yield (TEY) is the yield that a taxable bond must have to equal or exceed the tax-adjusted yield of a municipal bond. Tax ...