Tax Playbook · Investment tax wins
Municipal bonds
When cities and states borrow money, the interest they pay you is free from federal tax (and often state tax too). The rate looks lower — say 3.5% vs 5% on a regular bond — but after taxes, the muni can leave more money in your pocket.
Good for: People in high tax brackets who own bonds outside retirement accounts.
Learn the basics
Recent articles & guides
- Motley Fool — municipal bonds guide
- Stifel — the preferential tax treatment of municipal bonds (PDF)
- CLIMB — how to buy municipal bonds for tax-free income
On this site
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.