ccashaftertaxBETA
MUNICIPAL FUNDS · TAXABLE SAVINGS

Municipal money market vs. HYSA

A lower headline yield can go further when some income is tax-exempt. Compare the actual dollars.

By Cash After Tax · Data review 2026-09-06 · 2025 tax percentages used as estimatesRun your comparison ↓

The quoted rates

Dated snapshot from the 2026-09-06 data review. Each product carries its own source date. Confirm a new quote with the issuer if the live calculator has excluded a stale rate.

ProductQuoted rateRate dateSource
FTEXX1.96% 7-day yield2026-09-04Issuer ↗
FABXX1.75% 7-day yield2026-09-04Issuer ↗
FAUXX1.73% 7-day yield2026-09-04Issuer ↗
VMSXX1.97% 7-day yield2026-09-04Issuer ↗
VCTXX1.83% 7-day yield2026-09-04Issuer ↗
VYFXX1.95% 7-day yield2026-09-04Issuer ↗
SWTXX1.91% 7-day yield2026-09-04Issuer ↗
SWWXX1.91% 7-day yield2026-09-04Issuer ↗
SWKXX1.69% 7-day yield2026-09-04Issuer ↗
SWYXX1.78% 7-day yield2026-09-04Issuer ↗
FAYXX1.72% 7-day yield2026-09-04Issuer ↗
FAWXX1.84% 7-day yield2026-09-04Issuer ↗

A worked example

Illustration using the 2026-09-06 data review: $50,000 for 12 months, 24% federal tax, 5% state tax in California, no local tax or NIIT, and monthly reinvestment for funds. The example HYSA is 3.5% APY and keeps $1,242.50 after tax. Fund exemptions use 2025 information as a proxy.

ProductProjected gross incomeAfter taxes and fees
FTEXX$988.85$702.08–$939.41 (unverified tax split)
FABXX$882.05$626.26–$882.05 (unverified tax split)
VMSXX$993.94$944.25
VCTXX$922.71$922.71
SWTXX$963.40$684.02–$963.40 (unverified tax split)
SWWXX$963.40$684.02–$963.40 (unverified tax split)
SWKXX$851.58$604.62–$850.98 (unverified tax split)

These are dated examples at constant rates, not current recommendations. Ranges are mathematical limits, not likely outcomes. Change the inputs below for your situation.

Federal exemption is only part of the comparison

Qualified exempt-interest dividends are generally exempt from regular federal income tax. A fund may also distribute taxable income. State treatment depends on where the obligations were issued, the fund’s annual allocation and the state’s rules. A state-specific fund name is not proof that every dollar is exempt.

What is verified in this release

We include national municipal funds and identified state-specific options for California, New York, Massachusetts and New Jersey at their home brokerages. Vanguard’s 2025 documents establish the federal exemption used for its listed municipal funds and the 100% California or New York allocation for its corresponding state funds. These are prior-year proxies. Other funds remain visible as ranges where a distribution split is missing.

Why some results are ranges

If the federal split is unverified, the bounds span fully taxable to federally exempt income. If the applicable state exemption is unverified, that component spans 0% to 100% exempt. These are mathematical limits, not likely outcomes. Such products are excluded from the ranked comparison. The upper bound does not mean the fund qualifies for that exemption.

National fund state exceptions

The coverage page identifies verified issuer-specific restrictions and state exceptions. Do not treat a state allocation as automatic eligibility for a state exemption. Unresolved cases appear as ranges when they affect dollars. There is no claim of a completed 51-jurisdiction tax audit.

AMT and NIIT matter differently

The 3.8% net investment income tax is applied to modeled federally taxable income, not exempt municipal interest. AMT requires a different calculation, including private-activity income and individual circumstances. If AMT may apply, select the AMT setting to remove municipal funds from this comparison.

The calculator ranks only products with a complete tax estimate under your inputs. It does not choose investments for you or guarantee future income. Read the methodology and source documents.

Tax and program sources

01 YOUR CASH, YOUR TAXES
$

Example rates, not a tax-bracket lookup. Enter your own marginal rates; use 0 if this income is not taxed.

3.5% is an editable example, not a bank quote.

Additional tax & account settings

Local tax is applied to all income without an exemption. Local rules are not modeled.

Calculated in your browser. No account needed.

02 WHAT YOU COULD KEEP 12 MONTHS
Other products & eligibility
Read this comparison as an estimate.

Rates are held constant and income is reinvested. Taxes are paid from outside the account. Tax exemptions use 2025 issuer information as a proxy; 2026 percentages are not yet final. Unknown municipal tax splits appear as ranges and are not ranked. Local exemptions, AMT, deductions and tax-bracket interactions are outside the model. See how we calculate →