Taxable Equivalent Calculator
You can compare what a taxable investment would have to yield to match the tax-exempt returns offered by municipal bonds. This involves determining what is commonly referred to as the "taxable equivalent yield" (TEY).
To Use the Calculator: - Enter Your Tax Free Yield
- Select your tax bracket and the state in which you live
- Press Calculate
Important note to all users:
The taxable equivalent yield (TEY) measures what you would have to earn (yield) on a taxable (or fully taxable) investment in order to match the yield provided by a tax-exempt municipal bond. The TEY however, is only one factor that should be considered when purchasing a municipal bond.
2004 Federal Income Tax figures are derived from sources believed to be reliable. Ethos Advisory Services does not take any responsibility to their being accurate. The state tax rates shown represent the max state income tax in each state. Some states may have lower state taxes, which would result in lower taxable equivalent yields. Federal and state income tax figures could change without prior notification.
