2007-05-15 07:53:35 · 3 answers · asked by jfkinlagunabeach 1 in Business & Finance ➔ Taxes ➔ United States
Actually, they are 'double tax free', but that doesn't mean what you think. They are free from state and LOCAL taxes, but subject to Federal tax. Municipal bonds, those issues by cities or towns, are usually TRIPLE tax free. That means they are not subject to ANY income tax.
2007-05-15 13:18:52 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
None of the treasury notes are double tax free. They are only tax free state-wise, if anything. What usually is double tax free, are municipal notes issued by a municipality in the state you reside in.
2007-05-15 08:42:01 · answer #2 · answered by Anonymous · 3⤊ 0⤋
No. They are exempt from state taxes but you pay federal taxes on the interest.
2007-05-15 07:59:33 · answer #3 · answered by Wayne Z 7 · 4⤊ 1⤋