VUSXX or VCTXX?
VUSXX yields 3.80% today and VCTXX 3.06%. What you keep turns on who taxes each. For a single filer earning $150,000 a year, VCTXX keeps more in 38 of 52 places, counting every state, DC and New York City.
Who taxes each
- VUSXX
- 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.
- VCTXX
- 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 each keeps
The yield left after every tax, each with $100,000 in cash. The one that keeps more is in ink.
Work out yours, against all six funds.
| Who | VUSXX | VCTXX |
|---|---|---|
| Texas, single, $60,000 | 3.34% | 3.06% |
| Texas, single, $150,000 | 2.89% | 3.06% |
| Texas, married, $400,000 | 2.74% | 3.06% |
| California, single, $60,000 | 3.34% | 3.06% |
| California, single, $150,000 | 2.89% | 3.06% |
| California, married, $400,000 | 2.74% | 3.06% |
| New York, single, $60,000 | 3.34% | 2.89% |
| New York, single, $150,000 | 2.89% | 2.88% |
| New York, married, $400,000 | 2.74% | 2.85% |
| New York City, single, $60,000 | 3.34% | 2.78% |
| New York City, single, $150,000 | 2.89% | 2.76% |
| New York City, married, $400,000 | 2.74% | 2.73% |
Vanguard’s 7-day SEC yields for October 1, 2026. A muni fund keeps more as the federal bracket rises.
Where each comes out ahead
Across every state, DC and New York City, on today’s yields.
- Single, $60,000
- VUSXX keeps more everywhere.
- Single, $150,000
- VUSXX keeps more in Connecticut, Delaware, Hawaii, Maine, Maryland, Minnesota, New Jersey, New York, New York City, Oregon, Vermont and Virginia, they come out the same in Kansas and Montana, and VCTXX keeps more everywhere else.
- Married, $400,000
- VUSXX keeps more in New York City; VCTXX everywhere else.
Asked about VUSXX and VCTXX
Is VUSXX or VCTXX better?
On the yields for October 1, 2026, VUSXX keeps more in Connecticut, Delaware, Hawaii, Maine, Maryland, Minnesota, New Jersey, New York, New York City, Oregon, Vermont and Virginia, they come out the same in Kansas and Montana, and VCTXX keeps more everywhere else. That is for a single filer earning $150,000 a year; the answer turns on your state and your bracket.
What is the difference between VUSXX and VCTXX?
VUSXX is a Treasury money market fund. 100% of its income in 2025 came from U.S. government obligations. VCTXX is a municipal money market fund for California: its income is interest on California's state and local bonds.
How is VUSXX taxed?
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.
How is VCTXX taxed?
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.
Checked on September 30, 2026 against Net investment income tax, Vanguard, U.S. government obligations income information for 2025, ICI, state taxation of dividends from federal obligations (2023), ICI, state taxation of state and local obligations (2023), Rev. Proc. 2025-32 and every state's published schedule and Vanguard's daily 7-day SEC yields. 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.