What’s your total income tax rate?

*required
*required

Federal Income
Tax Rate
%
+
State Income
Tax Rate
%
+
Local Income
Tax Rate
%
+
Health
Care Tax†**
%
+
Itemized Deduction
Limitations
%
Top Tax Rate
on Ordinary Income†D
%

Your marginal tax rateC on various types of income

Roll over the types of income or see footnotes 1-11 for more information

Fixed Income

  • In-State Munis1

    %
    In-state munis are generally exempt from both federal and state taxes. Local taxes may still apply, but are not factored in here. IA, IL, OK and WI generally tax interest paid on in-state munis. Private Activity Bonds are subject to AMT, and if a taxpayer is subject to the AMT they would be subject to federal tax. Some additional exceptions may apply.
  • Out-of-State Munis2

    %
    Out-of-state munis are generally exempt from federal taxes, but not state and local taxes, except the District of Columbia which is tax exempt on munis, irrespective of state of issuance. Some out-of-state munis may also be exempt from state and local taxes, depending on your state and the state of the bond you purchase. IA, IL, OK and WI generally tax interest paid on out-of-state munis. Private Activity Bonds are subject to AMT, and if a taxpayer is subject to the AMT they would be subject to federal tax. Some additional exceptions may apply.
  • U.S. Treasurys3

    %
    U.S. treasurys are generally exempt from state taxes but some exceptions may apply.
  • Other Fixed Income4

    %
    Other fixed income may include corporate bonds, floating-rate loans and other sovereign debt, among others.

Dividends

  • Non-Qualified Dividends5

    %
    Non-qualified dividends are dividends on common stock that are intended to be paid periodically in equal amounts over the course of a year, typically quarterly, after being declared by the issuer of the stock.
  • Qualified Dividends6

    %
    Qualified dividends are ordinary dividends that meet specific criteria to be taxed at the lower long-term capital gains tax rate rather than at the higher tax rate for an individual's ordinary income.

Capital Gains

  • Short Term7

    %
    Short-term capital gains are those associated with an investment that was held for one year or less. Most states generally tax capital gains at the same rate as ordinary income, and that is assumed here. Massachusetts generally taxes short-term capital gains at 12%. AL, FL, NV, SD, TX, WA and WY do not tax short-term capital gains. Some additional exceptions may apply.
  • Long Term8

    %
    Long-term capital gains are those associated with an investment that was held for more than one full year. Most states generally tax capital gains at the same rate as ordinary income, and that is assumed here. Massachusetts generally taxes long-term capital gains at 12%. AL, FL, NV, SD, TX, WA and WY do not tax long-term capital gains. Some additional exceptions may apply.

Withdrawals From
Retirement Accounts

  • 401(k)9

    %
    401(k) withdrawals are treated as ordinary income. It is assumed that only pretax dollars were contributed, and the entire withdrawal is taxed. Withdrawals before age 59½ may be subject to an additional 10% penalty.
  • Traditional IRA10

    %
    A traditional IRA offers some tax advantages. Contributions made to a traditional IRA may be fully or partially deductible. Generally speaking, amounts in a traditional IRA (including earnings and gains) are not taxed until distributed. Withdrawals must begin after reaching age 70½.
  • Roth IRA11

    %
    A Roth IRA is generally not taxed if certain conditions are met. Contributions to a Roth IRA are not tax-deductible and can be made after reaching age 70½. Qualified distributions may be tax-free if certain requirements are satisfied.

Your taxable fixed income could be as high as 47.8%
and your rate on in-state munis’ could be as low as 0.0%.

See how you could evaluate tax-advantaged municipal bonds.

Check out our Tax-Equivalent Yield Calculator

Learn More About How Taxes Can Impact Your Investments

Help evaluate
tax-advantaged bonds

See how munis’ favorable tax status compares with taxable bonds of equal quality and maturity.

Calculate
Your After-Tax Yield Potential
Manage concentrated stock positions

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How can I prepare for rising interest rates?

See how laddered portfolios may perform in an environment of higher taxes and rising rates.

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Your Laddered Bond Potential


The output of this calculator is for educational purposes only and should not be considered investment, legal or tax advice. The output is general in nature and may not apply to your individual tax situation and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.

For more individualized information, you should consult your tax advisor or investment professional. You bear sole responsibility for any decisions you make based on the output of this calculator. The calculator makes certain assumptions that may not apply to you. The calculator has many inherent limitations and individual results may vary.

Tax rates and tax laws are updated through February 6, 2018. Rates are sourced from www.taxfoundation.org.

The displayed rates have been rounded to the nearest hundredth of a percent. The Top Tax Rate on Investment Income may not add up to the displayed rates due to rounding.

* Note that if you are filing a resident return in one of the following states (AL,IA,LA,MO,MT or OR) you could be entitled to an additional deduction related to current year federal income tax. Residents filing in AL, LA, MO and OR are allowed a deduction for federal taxes equal to your federal income tax liability from your return after subtracting certain federal tax credits. Residents in IA and MT are allowed a deduction equal to the amount of all federal taxes actually paid in cash during the filing year. It should be noted that the following limitations do apply:
Missouri: The amount of the deduction is limited to $5,000 for single filers and $10,000 for married taxpayers who file jointly.
Montana: The amount of the deduction is limited to $5,000 for single filers and $10,000 for married taxpayers who file jointly, and you must itemize on your state return to claim it.
Oregon: The amount of the deduction is limited to $5,950 and is phased out and eventually eliminated for higher earners.

** In tax years beginning in 2013 and later, a 3.8 percent Net Investment Income Tax (NIIT) applies to individuals, estates and trusts that have net investment income above applicable threshold amounts. This is commonly referred to as the Health Care Tax.

1 In-state munis are generally exempt from both federal and state taxes. Local taxes may still apply, but are not factored in here. IA, IL, OK and WI generally tax interest paid on in-state munis. Private Activity Bonds are subject to AMT, and if a taxpayer is subject to the AMT they would be subject to federal tax. Some additional exceptions may apply.

2 Out-of-state munis are generally exempt from federal taxes, but not state and local taxes, except the District of Columbia which is tax exempt on munis, irrespective of state of issuance. Some out-of-state munis may also be exempt from state and local taxes, depending on your state and the state of the bond you purchase. IA, IL, OK and WI generally tax interest paid on out-of-state munis. Private Activity Bonds are subject to AMT, and if a taxpayer is subject to the AMT they would be subject to federal tax. Some additional exceptions may apply.

3 U.S. Treasurys are exempt from state taxes.

4 Other fixed income may include corporate bonds, floating-rate loans and other sovereign debt, among others.

5 Non-qualified dividends are a dividends on common stock that are intended to be paid periodically in equal amounts over the course of a year, typically quarterly, after being declared by the issuer of the stock.

6 Qualified dividends are ordinary dividends that meet specific criteria to be taxed at the lower long-term capital gains tax rate rather than at the higher tax rate for an individual's ordinary income.

7 Short-term capital gains are those associated with an investment that was held for one year or less. Most states generally tax capital gains at the same rate as ordinary income, and that is assumed here. Massachusetts generally taxes short-term capital gains at 12%. AL, FL, NV, SD, TX, WA and WY do not tax short-term capital gains. Some additional exceptions may apply.

8 Long-term capital gains are those associated with an investment that was held for more than one full year. Most states generally tax capital gains at the same rate as ordinary income, and that is assumed here. Massachusetts generally taxes long-term capital gains at 12%. AL, FL, NV, SD, TX, WA and WY do not tax long-term capital gains. Some additional exceptions may apply.

9 401(k) withdrawals are treated as ordinary income. It is assumed that only pretax dollars were contributed, and the entire withdrawal is taxed. Withdrawals before age 591/2 may be subject to an additional 10% penalty.

10 A traditional IRA offers some tax advantages. Contributions made to a traditional IRA may be fully or partially deductible. Generally speaking, amounts in a traditional IRA (including earnings and gains) are not taxed until distributed. Withdrawals must begin after reaching age 701/2.

11 A Roth IRA is generally not taxed if certain conditions are met. Contributions to a Roth IRA are not tax-deductible and can be made after reaching age 701/2. Qualified distributions may be tax-free if certain requirements are satisfied.