VMSXX yield: 2.27% as filed, and what it keeps after tax

What the filings say about VMSXX

Vanguard Municipal Money Market Fund holds short-term notes and variable-rate demand obligations issued by states, cities and their agencies: 97% of the portfolio at the end of the reported month. Its dividends are exempt from federal income tax, which a taxable fund cannot offer, so its 2.27% 7-day yield has to be read against a taxable yield after tax, not before. The filed history shows something the fund’s fact sheet does not stress: municipal money fund yields swing much more than government ones. Between June and October VMSXX ranged from 1.54% on July 8, 2026 to 3.49% on October 6, 2026, while VMFXX stayed within a few tenths of a point. The swings follow the supply of short municipal paper and the flows in and out of tax-exempt funds. The break-even is simple arithmetic: VMSXX keeps more than VMFXX only when tax takes more than 41% of a VMFXX dividend, more than the top federal rate of 37% plus the 3.8% surtax, so only state tax on the government fund can tip the balance. For a Californian or a New Yorker, the single-state fund of the same family is the other candidate, because VMSXX dividends from other states’ bonds are taxed by the reader’s state.

VMSXX 7-day yield as filed, June 1, 2026 to October 30, 2026

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 VMSXX held on October 31, 2026

VMSXX at a glance

Where VMSXX 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:

The rank compares VMSXX 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 $487 a year more than VMSXX 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 VMSXX

This page treats the whole VMSXX dividend as taxable by your state, the cautious case: the share from your own state’s bonds, which many states exempt, is printed in Vanguard’s year-end letter and can be typed in the tax letter field. Expenses on the filed yields were about 0.11%.