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Do you realize that you may be paying as much as 30% to 40% of your investment income in Federal and state taxes? Paying that much in taxes significantly reduces what you get to keep. You can see from the chart that you would have to earn significantly more from a taxable investment to equal what you get to keep from a tax-free investment.
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This chart assumes a 35% Federal and 5% state tax-rate and is for illustrative purposes only. It is not indicative of past or future performance of any investment offered by Aquila. |
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To see how beneficial
a tax-free rate of return can be to you, check the chart below. It shows
what a taxable investment would have to yield to match a tax-free investment.
Find your taxable
income and tax bracket, and read across.
TAX-FREE FUND FOR UTAH TAXABLE EQUIVALENT YIELD TABLE - 2012 RATES
TAXPAYER
INCOME STATUS
|
FEDERAL
TAX
BRACKET |
UTAH
STATE
TAX RATE |
COMBINED
EFFECTIVE
RATES |
TAX-FREE
YIELD |
3.00% |
3.50% |
4.00% |
4.50% |
SINGLE
RETURN |
JOINT
RETURN |
TAXABLE
EQUIVALENT YIELD |
| $8,701 - 35,350 |
$17,401 - 70,700 |
15.00% |
5.00% |
19.25% |
3.72% |
4.33% |
4.95% |
5.57% |
| $35,351 - 85,650 |
$70,701 - 142,700 |
25.00% |
5.00% |
28.75% |
4.21% |
4.91% |
5.61% |
6.32% |
| $85,651 - 178,650 |
$142,701 - 217,450 |
28.00% |
5.00% |
31.60% |
4.39% |
5.12% |
5.85% |
6.58% |
| $178,651 - 388,350 |
$217,451 - 388,350 |
33.00% |
5.00% |
36.35% |
4.71% |
5.50% |
6.28% |
7.07% |
| Over $388,350 |
Over $388,350 |
35.00% |
5.00% |
38.25% |
4.86% |
5.67% |
6.48% |
7.29% |
For a printable version of this information, please click here.
This chart is for illustration purposes only; it does not represent past or future performance of any investment. The taxable equivalent yields assume the highest marginal tax rates applicable to the income levels indicated within each bracket. The tax rates shown represent 2012 Federal tax rates and 2012 Utah tax rates. The combined effective rate is computed assuming that taxpayers itemize deductions on their federal income tax returns.
For certain investors, some Fund dividends may be subject to Federal and State taxes, including the Alternative Minimum Tax. Consult your professional tax advisor. Mutual fund investing involves risk; loss of principal is possible. Investments in bonds may decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. Insurance on an obligation is intended to mitigate credit risk; it does not insure the market price of the obligation. Before investing in the Fund, carefully read about and consider the investment objectives, risks, charges, expenses and other information found in the Fund prospectus. The prospectus is available from your financial advisor, and when you call 800-437-1020, or by clicking here.
Not FDIC Insured - No Bank Guarantee - May Lose Value - Not NCUA Insured |
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