CD vs Treasury Calculator

Treasury interest is exempt from state and local income tax; CD and bank interest isn’t. See which pays more after tax.

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Rates in percent.
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Better after tax
CD after tax
Treasury after tax
CD yield needed to match the Treasury
After-tax interest per year
Work

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Comparing CDs and Treasuries After Tax

CD after tax = APY × (1 − federal − state)   Treasury after tax = yield × (1 − federal)
Tax-equivalent CD yield = Treasury after-tax ÷ (1 − federal − state)

Worked Example

Tips

This simple version ignores the federal deduction for state taxes (which matters only if you itemize, within the SALT cap). In a state with no income tax, compare the rates directly. Hold-to-maturity assumed; selling a Treasury early can gain or lose value.