Tax Equivalent Yield Calculator

Last updated: 2026-08-24

Tax Equivalent Yield Calculator — Calculate tax equivalent yield.
Inputs
%
%
Result
Enter values and press Calculate

How to use it

  1. Convert the rate impositiva a decimal
  2. Subtract of 1 the rate impositiva
  3. Divide the yield municipal per this result

Common mistakes

  • ⚠️ Not Convert the percentage of taxes a decimal
  • ⚠️ Invertir the numerador and denominador

Worked example

Calculate TEY: 4% tax-free yield, 30% tax bracket.

The efficiency equivalente muestra qué return taxable necesitarías to igualar the bono municipal

Formula

Tax Equivalent Yield = Tax-Free Yield ÷ (1 - Federal Tax Rate)

Input guide

FieldTypical range
muni_yieldTípicamente between 1% and 8%
tax_rateBetween 10% and 50% according to tramo impositivo