Tax Equivalent Yield (TEY) Calculator

It is an online tool for tax calculation and used to calculate the tax-equivalent yield on tax-exempt investments.

Federal Tax
State Tax
Federal & State Tax


Tax Equivalent Yield (%) = 8.33

Tax Equivalent Yield Formula

Tax-equivalent yield is a way to measure the return on a taxable bond or other investment to make it equal to the return associated with a tax-exempt bond or investment.

To calculate the taxable equivalent yield of a tax-free municipal bond, use the following formula and be sure to include any state taxes along with your federal tax rate.

ReturnTEY = ReturnTX ÷ (1 - t)


ReturnTEY - Return on fully taxable equivalent yield

ReturnTX - Return on tax exempt investment

t - Investors marginal tax rate