VUSXX or VYFXX?
VUSXX yields 3.80% today and VYFXX 3.30%. What you keep turns on who taxes each. For a single filer earning $150,000 a year, VYFXX 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.
- VYFXX
- For someone who lives in New York, VYFXX is free of federal and New York tax, and of New York City’s. 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 | VYFXX |
|---|---|---|
| Texas, single, $60,000 | 3.34% | 3.30% |
| Texas, single, $150,000 | 2.89% | 3.30% |
| Texas, married, $400,000 | 2.74% | 3.30% |
| California, single, $60,000 | 3.34% | 3.10% |
| California, single, $150,000 | 2.89% | 2.99% |
| California, married, $400,000 | 2.74% | 2.99% |
| New York, single, $60,000 | 3.34% | 3.30% |
| New York, single, $150,000 | 2.89% | 3.30% |
| New York, married, $400,000 | 2.74% | 3.30% |
| New York City, single, $60,000 | 3.34% | 3.30% |
| New York City, single, $150,000 | 2.89% | 3.30% |
| New York City, married, $400,000 | 2.74% | 3.30% |
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
- VYFXX keeps more everywhere.
- Married, $400,000
- VYFXX keeps more everywhere.
Asked about VUSXX and VYFXX
Is VUSXX or VYFXX better?
On the yields for October 1, 2026, VYFXX 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 VYFXX?
VUSXX is a Treasury money market fund. 100% of its income in 2025 came from U.S. government obligations. VYFXX is a municipal money market fund for New York: its income is interest on New York'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 VYFXX taxed?
For someone who lives in New York, VYFXX is free of federal and New York tax, and of New York City’s. 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.