Taxable Equivalent Yield Chart
| TAXABLE EQUIVALENT YIELD |
| Compare the higher taxable yield required to match the tax-free settlement annuity rate at various levels and tax brackets (i.e. a 5.5% tax-free annuity would be the same as a guaranteed 8.21% taxable yield for an individual in the 33% tax bracket) |
| Tax-free rate |
15% tax rate |
28% tax rate |
33% tax rate |
35% tax rate |
| 3.0% |
3.53 |
4.17 |
4.48 |
4.62 |
| 4.0% |
4.71 |
5.56 |
5.97 |
6.15 |
| 5.0% |
5.88 |
6.94 |
7.46 |
7.69 |
| 5.5% |
6.47 |
7.64 |
8.21 |
8.46 |
| 6.0% |
7.06 |
8.33 |
8.96 |
9.23 |
| 6.5% |
7.65 |
9.03 |
9.70 |
10.00 |
| 7.0% |
8.24 |
9.72 |
10.45 |
10.77 |
| 7.5% |
8.82 |
10.42 |
11.19 |
11.54 |
| 8.0% |
9.41 |
11.11 |
11.94 |
12.31 |
| 8.5% |
10.00 |
11.81 |
12.69 |
13.08 |
| 9.0% |
10.59 |
12.50 |
13.43 |
13.85 |
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