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REDDIT

Tax equivalent yields from tax free money markets

D
Jan 30, 2026 · 04:18

I'm trying to figure out whether I am calculating this correctly. Assume 37% Fed Rate, NIIT of 3.8, and 4.95 IL state tax

SUTXX - all UST - 3.54 yield is equivalent to 3.72

SWOXX - all munis - 1.8 yield is equivalent to 3.04

SNAXX - taxable MM = 3.67

So SUTXX is the winner by 0.05 (obviously not a ton)

Those numbers make sense?

And does putting money in SUTXX create any hassles, extra tax return work, or is it just as easy as SUTXX ordinary interest?

Thanks