TaxEquiv

Tax Equivalent Yield Calculator 22% Bracket

TEY when your top federal bracket is 22%.

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Try: Tax-exempt yield=3.5, Federal bracket=22, State bracket=0, NIIT=0, Investment=10000 → 3.50%, 22.00%, 4.49%, $350, 4.49%

How to use

At 22% federal, a 3.5% muni is worth roughly 4.5% taxable before tax.

Formula

TEY = y ÷ (1 − 0.22)

FAQ

Typical for whom?

Many middle-income households land in the 22% bracket.

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