Bonds

Are Municipal Bonds Tax Free In California?

Tax-exempt status — The majority of California municipal bonds are tax-exempt, while some specialized bonds are not (all are exempt from State of California personal income taxation for California residents, however). The designation of a bond as a “tax-exempt California municipal bond” is contingent on the bond issue’s intended purpose. California municipal bonds provide a […]

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Are Municipal Bonds Taxable In California?

Tax-exempt status — The majority of California municipal bonds are tax-exempt, while some specialized bonds are not (all are exempt from State of California personal income taxation for California residents, however). The designation of a bond as a “tax-exempt California municipal bond” is contingent on the bond issue’s intended purpose. California municipal bonds provide a

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Are Municipal Bonds Exempt From Federal Income Tax?

Residents of the issuing state are generally excluded from federal and state taxes on income earned from municipal bonds. While interest income is tax-free, any capital gains delivered to the investor are taxable. Why are municipal bonds exempt from federal taxation? The most compelling economic argument for municipal bond tax exemption is that it encourages

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