How the Tax-Equivalent Yield Works for Muni Bonds in 2026

Lucas and Luna break down the tax-equivalent yield on municipal bonds, explaining why a 3.5 percent muni can beat a 5 percent corporate bond for high-income investors. They walk through the math using a real-world example: a single filer in the 37 percent bracket plus the 3.8 percent net investment income tax, showing exactly how to calculate whether munis make sense in your portfolio. The episode covers why state-specific muni funds offer extra tax benefits, the risk of private-activity bonds triggering AMT, and how the SALT deduction cap changes the calculus for investors in high-tax states. No hype, just the numbers — plus a concrete decision framework for comparing taxable vs. tax-free yields in the mid-2026 rate environment. #TaxEquivalentYield #MunicipalBonds #MuniBonds #TaxFreeIncome #NetInvestmentIncomeTax #NIIT #AMT #SALT #TaxStrategy #BondInvesting #PortfolioTaxPlanning #HighIncomeInvestor #FexingoBusiness #BusinessPodcast #Finance #TaxPlanning2026 #FixedIncome #TaxEfficiency Keep every episode free: buymeacoffee.com/fexingo