VMFXX yield: 3.88% as filed, and what it keeps after tax
VMFXX is Vanguard Federal Money Market Fund, the fund Vanguard uses by default for the uninvested cash in a brokerage account. Here is what it paid and what you keep after tax. Yield reported by the fund for October 30, 2026, its last business day in the October 2026 report; holdings as of October 31, 2026, the date of that report. The fund’s own site shows today’s figure. Not investment advice.
Example result
VMFXX after federal and California tax
2.85%
$1,427 a year kept on $1,940 of dividends
| Dividends before tax | $1,940 |
| Federal tax at 24.0% | −$466 |
| State tax at 9.30% $1,426 of the $1,940 is free of California tax | −$48 |
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
What the filings say about VMFXX
Vanguard Federal Money Market Fund is the largest fund Vanguard runs, $374.1 billion in its single Investor share class at the end of the reported month. Its 7-day yield as filed was 3.88%, and its gross yield 3.99%, so expenses took about 0.11%. The number that matters for a resident of a taxing state is not the yield but the mix underneath it: 39% in Treasury bills and notes, 35% in Federal Home Loan Bank and Farm Credit debt, and 26% in repurchase agreements. Interest on the first two is shielded from state income tax by federal law; repo interest is not, even when Treasuries are the collateral. That is why Vanguard’s own year-end letter for 2024 put the share of VMFXX dividends from U.S. government obligations at 59.87%, not 100%, and why the fund sits behind its Treasury sibling once a state rate above a few percent is applied.
VMFXX 7-day yield as filed, June 1, 2026 to October 30, 2026
| Last day reported in the month | 7-day net yield |
|---|---|
| June 30, 2026 | 3.58% |
| July 31, 2026 | 3.62% |
| August 31, 2026 | 3.63% |
| September 30, 2026 | 3.79% |
| October 30, 2026 | 3.88% |
A fund reports these yields once a month, within five business days of month end. Between two reports the figure here ages: by the time the October 2026 report is replaced, it is up to five weeks old. The fund’s own site shows today’s figure.
What VMFXX held on October 31, 2026
| Holding | Share of portfolio | Exempt from state tax? |
|---|---|---|
| Treasury bills and notes | 38.7% | Yes, by federal law |
| Debt of the Federal Home Loan Banks, Farm Credit Banks and Tennessee Valley Authority | 34.8% | Yes, by federal law |
| Repo (short loans to banks and dealers) backed by Treasuries | 26.1% | No |
| Fannie Mae, Freddie Mac and other agency debt | 0.4% | No |
Share of the portfolio in U.S. government debt whose interest states cannot tax: 73.5%. This is the figure the calculator above uses as the state-tax-free part of the dividend. It is an estimate from the holdings on one day; the fund’s year-end tax statement gives the share of the year’s dividends, which is the figure for a tax return.
VMFXX and the 50% quarter-end test
| Quarter end | U.S. government debt | California, Connecticut, New York |
|---|---|---|
| June 30, 2026 | 67.9% | Passes (at least 50%) |
| September 30, 2026 | 75.4% | Passes (at least 50%) |
In California, Connecticut and New York, the part of a dividend earned on U.S. government debt is state-tax-free only if the fund kept at least half its money in that debt at every quarter end. These quarter-end figures only decide pass or fail; the 74% above is the part the calculator treats as tax-free. VMFXX held at least half its assets in U.S. government debt at every quarter end in the data, so it passes. The law looks at the close of each quarter of the fund’s own tax year, which is not always the calendar quarter; calendar quarter-end reports are a close proxy, and the fund’s year-end letter says whether it qualified. How the rule works.
VMFXX at a glance
| Fund type | Government money market fund; category on the filing: Government |
| Legal entity that files the fund’s report | Vanguard Money Market Reserves |
| Assets in this share class | $374.1 billion |
| Gross 7-day yield of the fund | 3.99% |
| Expenses taken from the yield (expense drag) | 0.11% |
| Average days until holdings repay or reset their rate (weighted average maturity) | 25 days (legal limit 60) |
| Average days until holdings are paid back in full (weighted average life) | 50 days (legal limit 120) |
| Minimum initial investment on file | $3,000 |
Where VMFXX ranks after tax
Among the 283 share classes in the data, for a single filer with $120,000 of taxable income and $50,000 in the fund:
| State | Rank | Yield after tax | Kept a year |
|---|---|---|---|
| California | 19 of 283 | 2.85% | $1,427 |
| New York | 14 of 283 | 2.89% | $1,444 |
| Texas | 17 of 283 | 2.95% | $1,474 |
The rank compares VMFXX with every other fund for a resident of that state. In a state with no income tax, such as Texas, funds whose dividends are taxed by states catch up, so the rank can be lower even though you keep more. In California, the fund ranked first kept $90 a year more than VMFXX on $50,000.
A rank of past yields, not a recommendation, and this site does not say which fund to hold. Moving cash to another fund can involve a minimum or a fee set by your brokerage. Rank every fund for your situation.
What to watch in VMFXX
At the last two quarter ends the fund held 67.9% and 75.4% in obligations that count for the California, Connecticut and New York test, so residents of those states could claim the exemption on the federal share. Inside the 2026 data the 7-day yield ranged from 3.55% on July 13, 2026 to 3.88% on October 29, 2026.
Questions about this page
Tap a question to see the answer.
Is VMFXX exempt from California state tax?
Partly. VMFXX held 67.9% and 75.4% in U.S. obligations at the June and September quarter ends, above the 50% California requires, so the share of dividends earned on those obligations is exempt. Vanguard printed that share at 59.87% for 2024; the 2026 figure comes in its January letter.
Why is VMFXX yield different from what Vanguard shows today?
This page shows the 7-day yield the fund reported to the Securities and Exchange Commission for October 30, 2026, filed on November 6, 2026. Vanguard updates its site every business day, so the two match only on that date. The direction over several weeks is the same.
How much does $10,000 in VMFXX pay a month?
At the filed 7-day yield of 3.88%, $10,000 earns about $32 a month before tax if the yield held for a full year, which it never does exactly. Dividends accrue daily and are paid monthly. The calculator above takes federal and state tax out.
Other pages
Filings, rules and tax schedules behind this page
- Form N-MFP report of Vanguard Money Market Reserves for October 31, 2026, filed November 6, 2026 (as filed)
- Securities and Exchange Commission, Form N-MFP data sets (monthly, as filed)
- 17 CFR 270.2a-7, money market funds (rule 2a-7)
- IRS Revenue Procedure 2025-32, 2026 tax rate tables
- California Franchise Tax Board, 2025 Schedule CA (540) instructions: funds with 50% of assets in U.S. or California obligations
- New York State Department of Taxation and Finance, 2025 Form IT-201 instructions (line 28, rate schedules)
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