NYC Tax-Equivalent Yield Calculator (Triple Tax-Free)
NYC residents face a unique "Triple Tax" burden. This calculator accounts for the NYC Local Income Tax (up to 3.876%) to show the value of triple-exempt bonds.
Locked to New York City (Triple Tax)
Defaults to top marginal bracket. Advanced users may edit or change. Includes NYC 3.876% local tax.
Tax-Equivalent Yield
To match a 3.50% tax-free yield, a taxable bond must pay 7.88%.
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: The Global Yield Benchmark
Living in NYC creates a unique "Triple Tax" burden (Federal + State + City) totaling nearly 52%. This makes NYC municipal bonds some of the most sought-after defensive assets globally.
Because NYC state and local taxes are largely non-deductible due to the SALT cap, every dollar of "Triple-Tax-Free" interest provides a leak-proof return that taxable CDs and Corporates cannot replicate.
Local Tax FAQs
How is the NYC rate determined?
We combine the 10.9% top New York State bracket with the 3.876% NYC local income tax to show the true "Triple" tax drag on your next dollar of interest.
Do I pay NYC tax on NY State bonds?
Generally, no. NY State bonds are exempt from City tax. However, bonds from OTHER states (like Florida or California) are fully taxable by both NY State and NYC.
How does the 2026 SALT cap affect NYC residents?
With a combined tax rate over 14%, most NYC investors far exceed the $40,400 SALT cap. This makes triple-tax-exempt income the only way to avoid state-level taxation entirely.
What is the difference between NYC GO and NYC TFA bonds?
General Obligation (GO) bonds are backed by city taxing power, while Transitional Finance Authority (TFA) bonds are backed by specific tax revenues. Both are typically triple-tax-free.
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Optimize Your Capital Gains
High earners often pair tax-free income with strategic loss harvesting. Have realized losses? Use our decision engine to check if you should harvest.