After-Tax Yield by State — 2025 Reference

How to read this reference

The same headline rate is not the same take-home rate. State income tax on savings and interest runs from zero to over ten percent, so a saver in one state keeps materially more of the same quoted yield than a saver in another. This reference lists the 2025 state marginal rates on ordinary interest and shows, for a worked example headline rate, the after-tax yield a resident of each US state would keep. Interest on US Treasury obligations is exempt from state tax, which can flip the ranking for high-tax states.

Run your own comparison

To sort 23 publicly-quoted venues by their after-tax rate at your own bracket, use the free After-Tax Yield Calculator — no login required. See also Where to Park Cash in 2026 and the Redundancy-First Money Framework.

Frequently asked

What is after-tax yield by state?

After-tax yield by state is the publicly-quoted rate on an account reduced by the federal and state income tax a resident of a given state would owe on that interest. Because state income-tax rates range from zero to over ten percent, the same headline rate leaves residents of different states with different amounts after tax. This page shows the arithmetic; it is educational only and not financial advice.

Which states have no income tax on savings interest?

As of 2025, Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming levy no state income tax, and New Hampshire taxes only certain interest and dividends under a phasing-out rule. In those states the after-tax yield on ordinary interest is reduced only by federal tax. Always verify the current rule for your state before relying on it.

Why does Treasury interest get taxed differently by state?

Interest on US Treasury obligations (including T-bills and qualifying Treasury money-market funds) is exempt from state and local income tax, though still federally taxable. That state exemption can make a Treasury venue after-tax yield higher than a higher-headline taxable account for residents of high-tax states.

Is this after-tax yield reference free?

Yes. This reference and the accompanying After-Tax Yield Calculator are free and require no login.

How accurate are these state rates?

The rates are simplified 2025 marginal approximations intended for comparison, not tax filing. Confirm your exact rate with your state department of revenue or a tax professional before making any decision.