New York money market fund tax: state, city and the 50% rule
Yields as filed for October 29 or October 30, 2026, holdings as of October 31, 2026, New York State and City rates for tax year 2025. Not tax or investment advice.
Example result
VUSXX after federal and New York tax
2.50%
$2,497 a year kept on $3,890 of dividends
| Dividends before tax | $3,890 |
| Federal tax at 35.8% | −$1,393 |
| State tax at 6.85% $3,890 of the $3,890 is free of New York tax | −$0 |
VYFXX after federal and New York tax
2.28%
$2,280 a year kept on $2,280 of dividends
VUSXX leaves $217 more a year than VYFXX.
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
Two taxes on the same dividend, one exemption
A New York City resident pays two income taxes on a money market fund dividend, the state’s and the city’s, both at progressive rates. The exemption works the same way for both. New York lets residents subtract interest on U.S. government obligations, and for a mutual fund it applies the same condition as California: the fund must have held at least 50% of its assets in such obligations at the end of each quarter of its tax year, and only the share of dividends from them is subtracted. Repo income does not qualify. A fund below 50% at a single quarter end gives no subtraction at all. The stakes are higher than elsewhere because the two rates stack: at $250,000 of income a city resident pays the state rate plus about 3.88% to the city on every taxable dollar. On $100,000 held by a single filer at that income, the prime fund SWVXX, which paid 3.77%, left 2.02% after federal, state and city tax, while the Treasury fund VUSXX, which paid 3.89%, left 2.50%. The data also holds 7 New York municipal share classes, free of all three taxes for residents; the calculator starts with one of them against VUSXX.
Top 15 share classes after tax in New York (New York City resident)
| # | Fund | You keep (after tax) | Before tax | Type |
|---|---|---|---|---|
| 1 | North Capital Treasury Money Market FundNCGXX | 2.56% | 3.99% | Treasury only |
| 2 | Gabelli U.S Treasury Money Market FundGABXX | 2.50% | 3.90% | Treasury only |
| 3 | Vanguard Treasury Money Market FundVUSXX | 2.50% | 3.89% | Treasury only |
| 4 | Treasury Instruments PortfolioNPYXX | 2.48% | 3.86% | Treasury only |
| 5 | JPMorgan 100% U.S. Treasury Securities Money Market ETFJMMF | 2.48% | 3.86% | Treasury only |
| 6 | Capital Group Central Fund Series - Capital Group Central Cash FundCMQXX | 2.47% | 3.96% | Government |
| 7 | NYLIM U.S. Government Liquidity FundMUSXX | 2.47% | 3.84% | Treasury only |
| 8 | Money Market AccountQCMMFX | 2.46% | 3.95% | Government |
| 9 | SDIT TREASURY II FUNDSCPXX | 2.45% | 3.81% | Treasury only |
| 10 | TREASURY TRUST FUNDBUCXX | 2.44% | 3.80% | Treasury only |
| 11 | ProShares GENIUS Money Market ETFIQMM | 2.43% | 3.79% | Treasury only |
| 12 | TREASURY TRUST FUNDBITXX | 2.43% | 3.78% | Treasury only |
| 13 | SDIT GOVERNMENT IITCGXX | 2.41% | 3.76% | Government |
| 14 | Nuveen Life Money Market FundTLMXX | 2.41% | 3.85% | Government |
| 15 | UBS Government Money Market Investments FundPCEXX | 2.40% | 3.84% | Government |
Ranked by what you keep after federal and state tax, not by the yield before tax. Single filer, $250,000 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.
The 15 largest government and Treasury classes and the 50% test
| Fund | Passes? | Jun 30 | Sep 30 | Assets |
|---|---|---|---|---|
| Fidelity Government Money Market FundSPAXX | Yes | 61% | 67% | $427.5 billion |
| Vanguard Federal Money Market FundVMFXX | Yes | 68% | 75% | $374.1 billion |
| Fidelity Government Cash ReservesFDRXX | Yes | 58% | 64% | $244.9 billion |
| Capital Group Central Fund Series - Capital Group Central Cash FundCMQXX | Yes | 84% | 82% | $131.7 billion |
| Vanguard Treasury Money Market FundVUSXX | Yes | 100% | 100% | $117.9 billion |
| Vanguard Cash Reserves Federal Money Market FundVMRXX | Yes | 70% | 76% | $115.8 billion |
| Treasury PortfolioNTPXX | Yes | 52% | 52% | $75.6 billion |
| Schwab U.S. Treasury Money FundSNSXX | Yes | 100% | 100% | $44.7 billion |
| Fidelity Treasury Money Market FundFZFXX | Yes | 59% | 61% | $41.9 billion |
| Schwab Treasury Obligations Money FundSNOXX | No: all taxed | 37% | 36% | $35.7 billion |
| Schwab Government Money FundSNVXX | No: all taxed | 29% | 29% | $31.6 billion |
| Invesco Premier U.S. Government Money PortfolioIUGXX | No: all taxed | 34% | 47% | $24.0 billion |
| Schwab Government Money FundSWGXX | No: all taxed | 29% | 29% | $23.6 billion |
| American Funds U.S. Government Money Market FundAFAXX | Yes | 84% | 85% | $23.5 billion |
| Edward Jones Money Market FundJNSXX | No: all taxed | 45% | 44% | $22.8 billion |
Percentages: share of the fund’s money in U.S. government debt that New York cannot tax (Treasuries, and debt of the Federal Home Loan Banks, Farm Credit Banks and Tennessee Valley Authority) at each quarter end of 2026, from the fund’s own reports. Below 50% at any quarter end, and the whole dividend is taxed by the state (“No: all taxed”). Above it, the part earned on that debt is state-tax-free (“Yes”).
Tax rate on the last dollar of income in New York
| Taxable income | State, single | State, joint | Federal, single |
|---|---|---|---|
| $50,000 | 9.32% | 9.32% | 12.0% |
| $100,000 | 9.88% | 9.38% | 22.0% |
| $200,000 | 9.88% | 9.88% | 24.0% |
| $500,000 | 10.73% | 10.73% | 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.
Where do I subtract U.S. government interest on a New York return?
On Form IT-201, the line for interest income on U.S. government bonds (line 28 in the 2025 instructions). For a mutual fund, the instructions limit the subtraction to funds that held at least 50% of their assets in U.S. obligations at the end of each quarter, and to the share of dividends from those obligations.
Does New York City tax money market fund dividends?
Yes, for city residents, and on the same base as the state: a dividend the state exempts is also out of the city tax. At $250,000 of income the city rate adds about 3.88% on the taxable part, which the calculator applies when you switch on New York City resident.
Is a New York municipal money fund worth it in the city?
It is the one fund type free of federal, state and city tax at once. On the filed yields VYFXX paid 2.28% and VUSXX 3.89%; with the city switch on, compare the two at your income in the calculator. For a single city resident at $250,000 of income, VUSXX kept more on the filed yields.
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