Tax-equivalent muni yield

What yield would a taxable bond need to match this muni?

Standard form: TEY = muniYield ÷ (1 − effectiveTaxRate). The federal portion is resolved against your filing status and taxable income using the 2026 IRS schedule. State tax and the 3.8% NIIT add to the effective rate when applicable; whether the state rate counts depends on the muni's residency and a small handful of states that tax their own munis.

Muni yield

Estimated taxable income

Federal filing status

Federal marginal rate: 32% — based on $500,000 of taxable income, married filing jointly, using the 2026 schedule. Assumes the muni’s comparison interest stays inside this bracket; bracket-spanning income is not modeled.

Your state of residence

Your state marginal rate

Where is the muni issued?

In your stateOut of state

NIIT applies to my investment income (3.8%)Typically yes if MAGI is above $200,000 (single) or $250,000 (married filing jointly). Munis are exempt from NIIT; comparable taxable bonds are not — checking this raises the effective rate the comparison runs against, which raises the calculated TEY.

Taxable-equivalent yield

6.879%

A taxable bond would need to yield 6.879% to match this 4.000% muni after tax. The effective marginal rate applied was 41.85%.

Want to compare multiple munis side-by-side, against your IPS allocation, and against the Treasury you already hold? That's what the full Ironlake fixed-income surface does.

Open Ironlake

Illustrative only. Uses the 2026 federal bracket schedule and treats state tax as a single marginal rate you provide (no progressive state brackets, no SALT-cap interaction). Does not model AMT-eligible private-activity bonds, IRMAA surcharges, capital-gains rate interactions, bracket-spanning income, or state-specific muni exceptions beyond the IL / IA / OK / WI in-state-tax rule. Consult your tax professional.