US Tax Tools

Tax-Equivalent Yield Calculator

A 5% CD isn't the same as a 5% muni bond. Compare after-tax yields across CDs, municipal bonds, Treasury bonds, and corporate bonds based on your tax bracket.

Your Tax Situation

Best After-Tax Yield

4.33% Corporate Bond (fully taxable)

Yield Comparison
InvestmentNominal YieldAfter-Tax YieldTax-Equivalent Yield
CD / HYSA (fully taxable)5%3.61%5%
Municipal Bond (federal tax-exempt)3.8%3.61%6.93%
Treasury Bond (state tax-exempt)5%3.8%5.26%
Corporate Bond (fully taxable)6%4.33%6%

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Last updated May 8, 2026 Tax year 2026

Data sources: IRC §103 — municipal bond interest exclusion, IRC §1411 — NIIT 3.8% surtax

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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