TaxEquiv

Tax Equivalent Yield Calculator 37% Bracket

TEY when your top federal bracket is 37%.

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Try: Tax-exempt yield=3.5, Federal bracket=37, State bracket=0, NIIT=0, Investment=10000 → 3.50%, 37.00%, 5.56%, $350, 5.56%

How to use

At the top 37% bracket, a 3.5% muni equals about a 5.6% taxable yield before tax.

Formula

TEY = y ÷ (1 − 0.37)

FAQ

Top bracket plus NIIT?

Add 3.8% NIIT and the effective rate passes 40%, lifting TEY further.

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