The state that you live in is important when buying municipal bonds. Most states do not tax their residents on income earned from municipal bonds issued from within that state. For example, if a California resident buys a bond that was issued by the city of Los Angeles, the resident would not pay federal or state tax. However, if an Arizona resident buys the same bond, the Arizona resident would have to pay state tax because he or she resides in Arizona but the bond was issued in California.

Although this is the general rule, there are two situations where it does not apply. Some states do not have any state income tax. Therefore, residents of these states can buy bonds from any other state without having to pay state taxes. Some other states tax their residents on municipal income, even if the bond was issued from within the state. In those situations, the resident must pay state tax, regardless of which state issued the bond, so these residents could buy bonds from any state.

If you select the state you live in from the list, Bond Screener will determine which states' bonds will be returned in your result list. In addition, Bond Screener will provide you with some very basic tax information on your state. It is highly recommended that you consult your tax advisor if you have any questions about the tax implications of municipal bonds in your state.

1. State List

   If you select the state you live in from the list, Bond Screener will determine which states' bonds will be returned in your result list.

2. Tax Information

   Bond Screener will provide you with some very basic tax information on your state. It is highly recommended that you consult your tax advisor if you have any questions about the tax implications of municipal bonds in your state.