Taxable Equivalent Yield Calculator

The Taxable Equivalent Yield is the yield required from a fully taxable investment to earn the same after tax income as you would with a tax-exempt municipal bond. Use this TEY calculator to compare the yields of fully taxable investments with the yields of tax-exempt municipal bonds.

About the Municipal Bond
1. Is the Municipal bond subject to state tax?
2. Is the Municipal bond subject to federal tax?
3. Enter the yield to maturity or yield to call of the Municipal bond

About You
4. Select your state of residence:
5. Select your federal tax rate:

Your taxable equivalent yield is   Click the Calculate Button
TEY is only one of many factors that should be considered when purchasing a security. This TEY calculator is intended to be used only as a general guideline when determining taxable equivalent yields for fully taxable securities. The calculator assumes the highest tax rate for the state you select. Some states may have lower tax rates within each federal tax bracket depending on the investor's income level and type of filing. If actual state tax rates are lower, taxable equivalent yields may be lower than shown in the calculator. The calculator does not adjust for the phase-out of itemized deductions for certain high income taxpayers, the yield to maturity factoring in market discount or market premium or the effect, if any, of the federal Alternative Minimum Tax (AMT). Federal and state income tax rates can change without prior notification.

Interest income on Municipal Bonds may be subject to the Alternative Minimum Tax. Discount bonds may be subject to capital gains tax.

TD Ameritrade does not provide tax advice. We suggest that you seek the advice of a tax-planning professional with regard to your personal circumstances.

 Single Filer Married Filing Jointly   
 More than:However, not over:More than:However, not over:Tax Rate 

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Research and planning tools are obtained by unaffiliated third party sources deemed reliable by TD Ameritrade. However, TD Ameritrade does not guarantee accuracy and completeness, and makes no warranties with respect to results to be obtained from their use.

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