Wealth Management
 
Tools & Resources | Taxable Equivalent Yield Table

Generally, investors look to tax exempt Municipal Bonds to provide a safe and predictable investment. The advantage of Tax Exemption depends on the rate at which Federal and State taxation is levied on income. The following chart sets forth an approximate idea how tax exempt yields compare to taxable yields. These tables should only be used to provide an indication of the relative value of tax exemption and are subject to change.

The Taxable Equivalent Yields table contains the 2005 California income tax rates. Alamo Capital would be more than happy to incorporate other state's marginal tax rates, upon request. If you have questions please contact us.
  Taxable Income
Single Return
$0-$7,300
$7,301-
$29,700
$29,701-
$71,950
$71,951-
150,150
$150,151-
$326,450
$326,451 & over
 Sample Effective Marginal Rate for Certain High-Income Taxpayers
Joint Return
$0-
$14,600
$14,601-
$59,400
$59,401-
$119,950
$119,951-
$182,800
$182,801-
$326,450
$326,451 & over
Tax Bracket
10%
15%
25%
28%
33%
35%
 36%**
Tax-Exempt Yields (%)
 Taxable Yield Equivalents (%)
1.0% 1.11% 1.18% 1.33% 1.39% 1.49% 1.54% 1.56%
1.5 1.67 1.76 2.00 2.08 2.24 2.31 2.34
2.0 2.22 2.35 2.67 2.78 2.99 3.08 3.13
2.5 2.78 2.94 3.33 3.47 3.73 3.85 3.91
3.0 3.33 3.53 4.00 4.17 4.48 4.62 4.69
3.5 3.89 4.12 4.67 4.86 5.22 5.38 5.47
4.0 4.44 4.71 5.33 5.56 5.97 6.15 6.25
4.5 5.00 5.29 6.00 6.25 6.72 6.92 7.03
5.0 5.56 5.88 6.67 6.94 7.46 7.69 7.81
5.5 6.11 6.47 7.33 7.64 8.21 8.46 8.59
6.0 6.67 7.06 8.00 8.33 8.96 9.23 9.38
6.5 7.22 7.65 8.67 9.03 9.70 10.00 10.16
7.0 7.78 8.24 9.33 9.72 10.45 10.77 10.94
7.5 8.33 8.82 10.00 10.42 11.19 11.54 11.72
 

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