Tax-Exempt Security

Filed Under » , , ,
Dictionary Says

Definition of 'Tax-Exempt Security'

A security in which the income produced is free from federal, state and local taxes. Most tax-exempt securities come in the form of municipal bonds, which represent obligations of a state, territory or municipality. For some investors, U.S. savings bond interest may also be free from federal income taxes.
Investopedia Says

Investopedia explains 'Tax-Exempt Security'

Depending on where the investor lives, a tax-exempt security may be free from all taxes. An in-state resident will usually receive a state and federal tax exemption on general obligation bonds from his or her home state.  

A tax-exempt security will carry a tax-equivalent yield that is often higher than the current yield, as determined by the investor's tax bracket. The higher the tax bracket, the more beneficial tax-exempt securities can become in a taxable investment account.  
Search results for

'Tax-Exempt Security'

  • CFA Level 1 Study Guide - Fixed Income Investments - After Tax ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/after-tax-yield-taxable-security.asp
    ... With Unequal Lives; 11.17 Types of Risk; 11.18 Risk-Analysis Techniques; 11.19
    Security Market Line and Beta Basics; 11.20 Factors that ...

  • Avoid The Social Security Tax Trap

    http://www.investopedia.com/articles/pf/08/social-security-tax.asp
    ... as modified adjusted gross income (MAGI) - by adding together tax-exempt interest
    (such as from municipal bonds), 50% of the year's Social Security income, as ...

  • Why Retirees Can't Count On Muni Bonds

    http://www.investopedia.com/articles/bonds/08/tax-equivalent-yield.asp
    ... However, if all tax-exempt income is subject to the tax on Social Security benefits
    (at 12.75%), the after-tax yield on the muni drops to 4.4% while the TEY ...

  • Top Tax Tips For Retirees

    http://www.investopedia.com/articles/tax/11/tax-tips-for-retirement.asp
    ... total income shown on your return (earnings from a job, interest, dividends, etc.)
    plus 50% of your net Social Security benefits, plus tax-exempt interest or ...

  • Series 66 Study Guide - Regulation of Securities - Exempt ...

    http://www.investopedia.com/exam-guide/series-66/regulation-of-securities/exempt-securities.asp
    ... As a general rule, any security backed by or insured by a government, or ... remember
    that anything that has some sort of federal or municipal tax-exempt status is ...

  • 4 Things That Are Reducing Your Social Security - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/4-Things-That-Are-Reducing-Your-Social-Security.aspx
    ... Total income is taxable pensions, wages, interest, dividends and other taxable income
    plus any tax-exempt interest and half your Social Security benefits. ...

  • 5 Steps To Forming A Tax-Exempt Nonprofit Corporation

    http://www.investopedia.com/articles/financial-theory/11/how-to-form-nonprofit-company.asp
    ... and must have its own tax number (similar to an individual's Social Security number ...
    for forming a corporation, you're ready to apply for tax-exempt status with ...

  • What You Need To Know About Capital Gains And Taxes

    http://www.investopedia.com/articles/tax/09/tax-effects-capital-gains.asp
    ... to dividends - both are commonly quoted in yields of the security price - but ...
    tax-bracket investor may be better served by sticking with tax-exempt issues.(For ...

  • Introduction To Money Market Mutual Funds

    http://www.investopedia.com/articles/mutualfund/04/081104.asp
    ... that offer the highest degree of security. Another important categorization for
    money market mutual funds relates to their taxable or tax-exempt status. ...

  • Series 7 Study Guide - Municipal Securities - Muni Taxes ...

    http://www.investopedia.com/exam-guide/series-7/municipal-securities/muni-tax.asp
    ... Public Communications; 14.8 Options Disclosure Document; 14.9 Municipal Security
    Advertising Standards; ... the federal level even though they are tax-exempt at the ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links