Taxable and Tax Exempt Bonds

Depending on the type of issuer and your state of residence, the interest you receive from a bond investment may be taxable or tax exempt. Generally speaking, all corporate bonds are taxable.

Municipal and state bonds are typically tax exempt at the federal level; if you live in the same state as the issuer they may also be exempt from state tax. U.S. government bonds are federally taxable but may be tax exempt at the state and local levels.

AARP Financial Inc. does not provide tax advice. Please consult a tax advisor for information pertaining to your particular situation.

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, or legal, tax or investment advice, or a legal opinion. Individuals should contact their own professional tax or investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action plan based on this information.

The Financial Advisors are investment adviser representatives of AARP Financial Inc., an investment adviser.

While AARP endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is an investment adviser and a subsidiary of AARP.