The Tax Equivalent Yield Calculator helps you compare municipal bonds and taxable yields quickly for free
Tax-Equivalent Yield Calculator
%
0%5%10%
Enter the yield of the municipal bond you are evaluating.
$
$0$1M$2M
Use taxable income after deductions (not gross income). For 2026, the estimated standard deduction is ~$16,100 (Single) or ~$32,200 (Married Filing Jointly).
%
0%7.5%15%
Results
Tax-Equivalent Yield
—
Marginal Federal Rate
—
Combined Marginal Rate
—
Yield Advantage
—
Tax Savings per $100K
—
Your Federal Bracket
—
Income in Top Bracket
—
Effective Federal Rate
—
You Keep of TEY
—
TEY Composition
—
Yield Breakdown
Tax-free yield
Tax cost portion
Yield Comparison
Municipal Bond Yield
Tax-Equivalent Yield
2026 Projected Federal Tax Brackets
| Rate | Taxable Income Range | Your Income in Bracket | Tax in Bracket | Cumulative Tax |
|---|
Bracket Projection Note: 2026 federal income tax brackets have not been officially released by the IRS (typically announced in Oct/Nov 2025). These brackets are projected by applying an estimated 2.8% inflation adjustment to the confirmed 2025 IRS brackets. Use for planning purposes only.
NIIT: Investors with modified adjusted gross income above $200,000 (Single) or $250,000 (MFJ) may owe an additional 3.8% Net Investment Income Tax on investment income, which would further increase the tax-equivalent yield.
SALT & State Munis: This calculator assumes the municipal bond is exempt from both federal and state taxes. Some states tax out-of-state municipal bonds. The $10,000 SALT deduction cap may also affect your effective state tax benefit if you itemize deductions.