New Jersey Tax-Equivalent Yield Calculator (2026)
Calculate the taxable yield required to match a New Jersey in-state municipal bond using 2026 marginal brackets.
Locked to New Jersey
Defaults to top marginal bracket. Advanced users may edit or change.
Tax-Equivalent Yield
To match a 3.50% tax-free yield, a taxable bond must pay 7.22%.
Tax efficiency applies to both income and capital gains.If you are optimizing after-tax bond income, you may also benefit from reviewing ETF correlation data for tax-loss harvesting.
Estimates based on projected 2026 marginal tax brackets. Assumes in-state municipal bond (exempt from Federal & State tax). Consult a tax professional for specific advice.
TaxLossPairs.comMacro Tax Perspective: Defeating the "Millionaire Tax"
With NJ’s 10.75% marginal rate applying to income over $1 million, high earners lose over 50% of taxable interest to combined taxes.
Because NJ state taxes are largely non-deductible under 2026 SALT rules, NJ-specific municipal bonds are the primary mechanism for preserving yield at the highest end of the income spectrum.
Local Tax FAQs
How is the 10.75% NJ rate determined?
We use the highest projected 2026 marginal rate of 10.75% (for income over $1 million). You can manually adjust this if you are in a lower bracket.
Do out-of-state bonds get taxed in NJ?
Yes. New Jersey taxes interest income from any municipal bond issued outside of its borders.
How does the 2026 SALT cap affect NJ muni bond savings?
The Federal SALT cap rose to $40,400 in 2026, but high earners face a phase-out starting at $505,000 MAGI, making NJ muni exemptions critical for tax efficiency.
Does New Jersey tax bond capital gains?
Yes. While NJ municipal bond interest is 100% exempt from NJ tax, any capital gains realized from selling bonds at a profit are taxable at standard NJ rates.
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Optimize Your Capital Gains
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