Money market funds in states with no income tax
Yields as filed for October 29 or October 30, 2026, federal brackets for 2026. Not tax or investment advice.
Example result
SWVXX after federal and no state tax
2.87%
$1,433 a year kept on $1,885 of dividends
| Dividends before tax | $1,885 |
| Federal tax at 24.0% | −$452 |
| State tax at 0.00% no state income tax | −$0 |
VUSXX after federal and no state tax
2.96%
$1,478 a year kept on $1,945 of dividends
VUSXX leaves $45 more a year than SWVXX.
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
When only federal tax applies, yield decides
In Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, there is no state tax on interest or dividends, so the question that fills the other pages of this site disappears. Every taxable money fund pays federal income tax at your marginal rate, plus the 3.8% net investment income tax above the thresholds, and nothing else. Whether the fund held Treasuries, repo or bank paper, and whether it passed a 50% test, changes nothing about the tax. The ranking after tax is then the ranking by 7-day yield: the highest-yielding taxable share class in the data, FLGXX at 4.04%, is also first among taxable funds after tax for every reader in these states. What remains are the choices tax does not settle: credit risk (prime funds lend to banks and companies, Treasury funds to the government), the possibility of liquidity fees in retail prime funds, minimum investments, and which funds your brokerage offers. A difference of 0.20 points of yield on $100,000 is $200 a year before federal tax. The table below ranks the top fifteen share classes; the calculator compares any two.
Top 15 share classes after tax in Texas
| # | Fund | You keep (after tax) | Before tax | Type |
|---|---|---|---|---|
| 1 | Fidelity Flex Government Money Market FundFLGXX | 3.07% | 4.04% | Government |
| 2 | Goldman Sachs Central Government FundGCCXX | 3.06% | 4.03% | Government |
| 3 | Fidelity Series Government Money Market FundFGNXX | 3.05% | 4.01% | Government |
| 4 | T. Rowe Price U.S. Treasury Money FundTRZXX | 3.03% | 3.99% | Treasury |
| 5 | North Capital Treasury Money Market FundNCGXX | 3.03% | 3.99% | Treasury only |
| 6 | Capital Group Central Fund Series - Capital Group Central Cash FundCMQXX | 3.01% | 3.96% | Government |
| 7 | Invesco Premier PortfolioIPPXX | 3.01% | 3.96% | Prime |
| 8 | U.S. Government Money Market FundAGJXX | 3.01% | 3.96% | Government |
| 9 | Invesco Premier PortfolioIMRXX | 3.01% | 3.96% | Prime |
| 10 | Money Market AccountQCMMFX | 3.00% | 3.95% | Government |
| 11 | Transamerica Government Money MarketTGTXX | 2.99% | 3.94% | Government |
| 12 | BNY Dreyfus Money Market FundGMGXX | 2.98% | 3.92% | Prime |
| 13 | Goldman Sachs Government Fund Series IIGFGXX | 2.97% | 3.91% | Government |
| 14 | Gabelli U.S Treasury Money Market FundGABXX | 2.96% | 3.90% | Treasury only |
| 15 | Vanguard Treasury Money Market FundVUSXX | 2.96% | 3.89% | Treasury only |
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.
Questions about this page
Tap a question to see the answer.
Which states have no tax on money market fund dividends?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. New Hampshire taxed interest and dividends until its tax was repealed for tax periods starting in 2025, and Washington taxes some capital gains but not dividends. In these nine states a money fund dividend bears federal tax only.
Is a Treasury fund pointless in Texas or Florida?
For tax purposes, yes: the state exemption that makes Treasury funds attractive elsewhere is worth nothing where there is no state income tax. Some investors still prefer them for the credit quality of Treasuries. On the filed yields VUSXX paid 3.89% and SWVXX 3.77%.
Do municipal money funds make sense without a state tax?
Only in high federal brackets. A national municipal fund’s dividend is free of federal tax, and with no state tax there is nothing else to save. Divide its yield by one minus your federal rate and compare with a taxable fund; the calculator does this when you choose a municipal fund.
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