State Tax Exempt Interests

State tax exempt interests are usually found in government securities such as tax exempt bonds. State tax exempt interests are exempt from either:

• federal taxes,
• state taxes, or
• local taxes.

US government bonds

Most United States government bonds are tax exempt bonds or tax free bonds. US savings bonds, being government issued bonds, are indeed tax exempt bonds. These US savings bonds that are tax free include:

• series EE US savings bonds,
• series HH US savings bonds, and
• other US savings bonds.

Bonds with state tax exempt interests are attractive investments

The government issued bonds with state tax exempt interests, federal tax exempt interests or local tax exempt interests are popular investments among conservative investors. Usually investors who invest a large amount of money in bonds and are in high tax brackets are more interested in tax exempt bonds with state tax exempt interests. For a list of government tax exempt bonds and securities, see below.

• Tax exempt bonds