The Basics

What are tax-free or tax-exempt bonds?

Tax-free or tax-exempt bonds are issued by a municipal, county, or state government, with interest payments that are not subject to any state, local, or sometimes federal taxes. These rules depend on what bonds you buy, and in what state or municipality you reside.


This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App