New Jersey money market fund tax: the exempt federal share
Yields as filed for October 29 or October 30, 2026, holdings as of October 31, 2026, New Jersey rates for tax year 2025. Not tax or investment advice.
Example result
SNOXX after federal and New Jersey tax
2.60%
$1,302 a year kept on $1,800 of dividends
| Dividends before tax | $1,800 |
| Federal tax at 24.0% | −$432 |
| State tax at 6.37% $770 of the $1,800 is free of New Jersey tax | −$66 |
SWVXX after federal and New Jersey tax
2.63%
$1,313 a year kept on $1,885 of dividends
SWVXX leaves $11 more a year than SNOXX.
Yield reported by the fund for October 30, 2026; yields change daily. Estimate, not tax or investment advice. Nothing you type leaves your browser. How it is computed
No 50% line for federal obligations
New Jersey has a threshold too, but it works differently and matters less for money funds than California’s. Its Division of Taxation describes a qualified investment fund: one with at least 80% of its investments in obligations exempt from New Jersey tax. Dividends of such a fund are exempt to the extent they come from those obligations, New Jersey municipal bonds included. For interest on federal obligations, though, GIT-5 says the part of a fund’s distributions that comes from them is exempt whether or not the fund qualifies. A government money fund that held 40% of its assets in Treasuries therefore passes 40% of its dividend to a New Jersey resident free of state tax, where a Californian would get nothing. Schwab Treasury Obligations (SNOXX) shows the gap: for a single filer at $120,000 it left 2.60% after New Jersey and federal tax, against 2.40% after California and federal tax, and most of that difference comes from California’s 50% test, which the fund missed and which removes the exemption that New Jersey keeps; the rest is the lower New Jersey rate. The data also holds 1 New Jersey municipal share class, exempt from both taxes for residents.
Top 15 share classes after tax in New Jersey
| # | Fund | You keep (after tax) | Before tax | Type |
|---|---|---|---|---|
| 1 | North Capital Treasury Money Market FundNCGXX | 3.03% | 3.99% | Treasury only |
| 2 | Capital Group Central Fund Series - Capital Group Central Cash FundCMQXX | 2.97% | 3.96% | Government |
| 3 | Gabelli U.S Treasury Money Market FundGABXX | 2.96% | 3.90% | Treasury only |
| 4 | Money Market AccountQCMMFX | 2.96% | 3.95% | Government |
| 5 | Vanguard Treasury Money Market FundVUSXX | 2.96% | 3.89% | Treasury only |
| 6 | Treasury Instruments PortfolioNPYXX | 2.93% | 3.86% | Treasury only |
| 7 | JPMorgan 100% U.S. Treasury Securities Money Market ETFJMMF | 2.93% | 3.86% | Treasury only |
| 8 | Fidelity Flex Government Money Market FundFLGXX | 2.93% | 4.04% | Government |
| 9 | Goldman Sachs Central Government FundGCCXX | 2.93% | 4.03% | Government |
| 10 | Fidelity Series Government Money Market FundFGNXX | 2.93% | 4.01% | Government |
| 11 | NYLIM U.S. Government Liquidity FundMUSXX | 2.92% | 3.84% | Treasury only |
| 12 | SDIT TREASURY II FUNDSCPXX | 2.90% | 3.81% | Treasury only |
| 13 | U.S. Government Money Market FundAGJXX | 2.89% | 3.96% | Government |
| 14 | T. Rowe Price U.S. Treasury Money FundTRZXX | 2.89% | 3.99% | Treasury |
| 15 | Vanguard Cash Reserves Federal Money Market FundVMRXX | 2.89% | 3.89% | Government |
Ranked by what you keep after federal and state tax, not by the yield before tax. Single filer, $120,000 of taxable income, yields the funds reported for October 29 or October 30, 2026. Each fund is shown by name, then its ticker, the short code your brokerage account shows. A ranking of past yields, not a recommendation.
Treasury only: holds only U.S. Treasury bills and notes. Treasury: Treasuries plus short loans to banks backed by Treasuries (called repo). Government: also holds debt of U.S. agencies and repo backed by it. Prime: also lends to banks and companies. Municipal: lends to states and cities, free of federal tax; a single-state municipal fund is also free of tax in its own state.
Tax rate on the last dollar of income in New Jersey
| Taxable income | State, single | State, joint | Federal, single |
|---|---|---|---|
| $50,000 | 5.53% | 1.75% | 12.0% |
| $100,000 | 6.37% | 5.53% | 22.0% |
| $200,000 | 6.37% | 6.37% | 24.0% |
| $500,000 | 6.37% | 6.37% | 38.8% |
State rates from the published schedules for tax year 2025, federal rates from the 2026 brackets including the 3.8% net investment income tax where it applies. The calculator uses the same figures.
Questions about this page
Tap a question to see the answer.
What is a qualified investment fund in New Jersey?
A fund that holds at least 80% of its investments in obligations exempt from New Jersey tax, such as U.S. and New Jersey obligations, and meets the other conditions of the Division of Taxation. Its dividends from all exempt obligations are exempt. For federal obligations alone the threshold does not apply, according to GIT-5.
Does New Jersey tax repo income in a Treasury fund?
Yes. Interest on repurchase agreements is not interest on U.S. obligations, so the part of a dividend earned on repo is taxable. In a fund like SNOXX, which held more repo than Treasuries at the last month end, most of the dividend is taxable in New Jersey.
How do I know the exempt share of my fund for New Jersey?
The fund company’s year-end tax information gives the percentage of dividends from U.S. government obligations, and often a separate New Jersey line for qualified investment funds. Enter the U.S. percentage in the tax letter field of the calculator to replace the holdings estimate.
Other pages
Filings, rules and tax schedules behind this page
Compiled by Radif Partners
Independent publisher of money market fund yield and after-tax calculators built on Form N-MFP filings
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Fund data as filed for 2026, site checked on