Tax Playbook · Investment tax wins
Treasuries skip state tax
Treasury bonds and bills are taxed by the federal government, but your state cannot tax the interest. That helps most in states with high income tax, like California. If a bank CD pays 4.5% and you pay 10% state tax, you keep only about 4.05%. A Treasury at 4.2% keeps the full 4.2%, so it wins even with a lower rate.
Good for: Savers in high-tax states like California and New York.
Learn the basics
- United States Treasury security — Wikipedia
- Investing Directly with the U.S. Treasury — TreasuryDirect (PDF)
Recent articles & guides
- Aptus Capital — Avoid this tax mistake: Treasury income is state-exempt
- How are Treasury bills taxed? — Winchell House
- CDs vs Treasuries after tax — MoneyRates
- CDs vs Treasuries: key pros and cons — MyPlanIQ
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.