Tax-equivalent yield
Tax-equivalent yield = tax-exempt yield ÷ (1 − marginal tax rate). Enter your own rates; nothing is assumed about your bracket, state, the alternative minimum tax or a specific fund’s taxable components. Municipal CEFs explained.
Educational calculation, not tax advice. A municipal fund’s distribution may include taxable income and capital gains; the exempt share is reported by the fund after year-end.
Tax-equivalent yield
5.26%
= 4.00% exempt ÷ (1 − 24%) + 0.00% taxable component (assumed fully taxable, no state treatment applied)