Tax Equivalent Yield Calculator

    Compare taxable vs tax-exempt bond yields

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    Formula

    TEY = Tax-Free Yield / (1 - Tax Rate)

    The taxable yield needed to match a tax-exempt bond's return.

    Examples

    3.5% muni, 32% bracket

    Equivalent to 5.15% taxable.

    Frequently Asked Questions

    About Tax Equivalent Yield

    Compare taxable versus tax-exempt bond yields for your tax bracket.