VUSXX or VMSXX?
VUSXX yields 3.80% today and VMSXX 3.34%. What you keep turns on who taxes each. For a single filer earning $150,000 a year, VMSXX keeps more in 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.
- VMSXX
- VMSXX is free of federal tax and of the 3.8% on investment income. Washington, DC and North Dakota leave it alone; every other state with an income tax taxes all of it.
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 | VMSXX |
|---|---|---|
| Texas, single, $60,000 | 3.34% | 3.34% |
| Texas, single, $150,000 | 2.89% | 3.34% |
| Texas, married, $400,000 | 2.74% | 3.34% |
| California, single, $60,000 | 3.34% | 3.14% |
| California, single, $150,000 | 2.89% | 3.03% |
| California, married, $400,000 | 2.74% | 3.03% |
| New York, single, $60,000 | 3.34% | 3.16% |
| New York, single, $150,000 | 2.89% | 3.14% |
| New York, married, $400,000 | 2.74% | 3.11% |
| New York City, single, $60,000 | 3.34% | 3.03% |
| New York City, single, $150,000 | 2.89% | 3.01% |
| New York City, married, $400,000 | 2.74% | 2.98% |
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 but Alaska, Florida, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee, Texas, Washington, Washington, DC and Wyoming, where they come out the same.
- Single, $150,000
- VMSXX keeps more everywhere.
- Married, $400,000
- VMSXX keeps more everywhere.
Asked about VUSXX and VMSXX
Is VUSXX or VMSXX better?
On the yields for October 1, 2026, VMSXX keeps more everywhere. 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 VMSXX?
VUSXX is a Treasury money market fund. 100% of its income in 2025 came from U.S. government obligations. VMSXX is a national municipal money market fund: its income is interest on state and local bonds from across the country.
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 VMSXX taxed?
VMSXX is free of federal tax and of the 3.8% on investment income. Washington, DC and North Dakota leave it alone; every other state with an income tax taxes all of it.
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.