Tax-Equivalent Yield Calculator
Convert a tax-free municipal bond yield into the taxable yield needed to match it.
Tax-equivalent yield
5.35%
Comparable taxable yield
Combined tax rate used
29.0%
Federal + state + NIIT
Municipal yield
3.80%
Taxable yield needed on $10,000
$535 annual interest
Muni income on $10,000
$380 annual interest
After-tax yield check
3.80%
Tax-equivalent yield = tax-free yield divided by one minus the applicable tax rate. Confirm state exemption rules for the specific bond.