Is VUSXX free of state tax?
No state taxes VUSXX, nor New York City: all of its 2025 income came from U.S. government obligations. It is taxed federally, with the 3.8% on investment income above $200,000 single or $250,000 joint.
Vanguard Treasury Money Market Fund
A Treasury money market fund. 100% of its income in 2025 came from U.S. government obligations.
- Yield
- 3.80%, the 7-day SEC yield for October 1, 2026, after the fund’s expenses
- Federal
- Taxed federally, with the 3.8% on investment income above $200,000 single or $250,000 joint.
- States
- The 9 states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) take nothing. Every state with an income tax leaves all of it alone.
- New York City
- Treats it the way the state does.
- Last year’s share
- 100% of its 2025 income was from U.S. government obligations, from Vanguard’s January sheet.
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 VUSXX 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 | 3.80% | 3.80% | 3.80% |
| California | 4.08% | 4.33% | 4.36% |
| New York | 4.05% | 4.12% | 4.20% |
| New York City | 4.24% | 4.36% | 4.46% |
VUSXX keeps 2.89% in Texas, 2.89% in California, 2.89% in New York and 2.89% 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
- Everywhere but Alaska, Florida, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee, Texas, Washington and Wyoming.
- Single, $150,000
- Nowhere today.
- Married, $400,000
- Nowhere today.
Asked about VUSXX
Is VUSXX free of state tax?
No state taxes VUSXX, nor New York City: all of its 2025 income came from U.S. government obligations. It is taxed federally, with the 3.8% on investment income above $200,000 single or $250,000 joint.
What is VUSXX's tax-equivalent yield?
It depends on your bracket and your state. On its 3.80% yield for October 1, 2026, for a single filer earning $150,000 a year it is 3.80% in Texas, 4.33% in California, 4.12% in New York and 4.36% in New York City: what a savings account taxed by everyone would have to pay to leave as much.
Is VUSXX the best money market fund?
Not on today's yields for a single filer earning $150,000 a year. Of the six Vanguard funds here, the one that leaves the most after tax is VMSXX, VCTXX or VYFXX, depending on the state. The answer moves with yields and with your bracket.
Does VUSXX meet the 50% test in California, Connecticut and New York?
Yes, for 2025: at least half the fund was U.S. government debt at the end of every quarter, so those states let its U.S. government share through untaxed like every other state does.
The yield is from Vanguard’s page for VUSXX, collected twice a day.
Checked on September 30, 2026 against Net investment income tax, Instructions for Form 8960, Vanguard, U.S. government obligations income information for 2025, ICI, state taxation of dividends from federal 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.