Is VCTXX tax-free in California?
For someone who lives in California, VCTXX is free of federal and California tax. Anywhere else it is free of federal tax, and a state with an income tax taxes it like any other state's bonds.
Vanguard California Municipal Money Market Fund
A municipal money market fund for California: its income is interest on California's state and local bonds.
- Yield
- 3.06%, the 7-day SEC yield for October 1, 2026, after the fund’s expenses
- Federal
- Free of federal tax and of the 3.8% on investment income.
- States
- The 9 states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) take nothing. California, North Dakota and Washington, DC leave all of it alone. Every other state with an income tax taxes all of it.
- New York City
- Treats it the way the state does.
What it is worth after tax
The tax-equivalent yield: what a savings account, taxed by everyone, would have to pay to leave you as much as VCTXX does. Each with $100,000 in cash.
Work out yours with your own income and state.
| Where | Single, $60,000 | Single, $150,000 | Married, $400,000 |
|---|---|---|---|
| Texas | 3.48% | 4.03% | 4.24% |
| California | 3.73% | 4.59% | 4.86% |
| New York | 3.50% | 4.11% | 4.36% |
| New York City | 3.53% | 4.17% | 4.44% |
VCTXX keeps 3.06% in Texas, 3.06% in California, 2.88% in New York and 2.76% in New York City for a single filer earning $150,000 a year.
Where it pays the most today
Of the six Vanguard funds here, after every tax, on the yields for October 1, 2026.
- Single, $60,000
- Nowhere today.
- Single, $150,000
- In California.
- Married, $400,000
- In California.
Asked about VCTXX
Is VCTXX tax-free in California?
For someone who lives in California, VCTXX is free of federal and California tax. Anywhere else it is free of federal tax, and a state with an income tax taxes it like any other state's bonds.
What is VCTXX's tax-equivalent yield?
It depends on your bracket and your state. On its 3.06% yield for October 1, 2026, for a single filer earning $150,000 a year it is 4.03% in Texas, 4.59% in California, 4.11% in New York and 4.17% in New York City: what a savings account taxed by everyone would have to pay to leave as much.
Is VCTXX the best money market fund?
Of the six Vanguard funds here, it leaves a single filer earning $150,000 a year the most after tax in California on today's yields. The answer moves with yields and with your bracket.
The yield is from Vanguard’s page for VCTXX, collected twice a day.
Checked on September 30, 2026 against Net investment income tax, ICI, state taxation of state and local obligations (2023), Rev. Proc. 2025-32 and every state's published schedule. An estimate for your records, not tax advice.
Put more back in your pocket.
Four questions find the fund that leaves you the most. Reimburse writes when a different one starts paying you more.