Which money market fund pays you most in California?
On today’s yields, VCTXX leaves a single filer earning $150,000 a year in California the most after tax: 3.06% a year, as good as a savings account paying 4.59%.
How California taxes each fund
California taxes interest at rates from 1% to 13.3%. Its 2026 brackets aren't published yet, so these use 2025's.
California, Connecticut and New York leave a fund's U.S. government income untaxed only when at least half the fund is U.S. government debt at the end of every quarter. VMFXX, VMRXX and VUSXX all met that in 2025, so California taxes 33.4% of VMFXX's, 30.4% of VMRXX's and none of VUSXX's income.
California taxes interest from other states' bonds, so VMSXX is free of federal tax but not of California's.
VCTXX, Vanguard's California municipal fund, is free of federal and state tax for someone who lives there.
| Fund | Federal | State | Yield |
|---|---|---|---|
| VMFXX Government | Taxed | 33.4% taxed | 3.79% |
| VMRXX Government | Taxed | 30.4% taxed | 3.80% |
| VUSXX Treasury | Taxed | Free | 3.80% |
| VMSXX National muni | Free | Taxed | 3.34% |
| VYFXX New York muni | Free | Taxed | 3.30% |
| VCTXX California muni | Free | Free | 3.06% |
Vanguard’s 7-day SEC yields for October 1, 2026, already after each fund’s expenses. A government fund’s share is the part of its 2025 income not from U.S. government obligations.
Today’s answer, three ways
Each with $100,000 in cash, priced through the federal brackets, the 3.8% on investment income and California's schedule.
Work out yours with your own income and cash.
| Household | Best fund | Keeps | Savings would need |
|---|---|---|---|
| Single, $60,000 | VUSXX | 3.34% | 4.08% |
| Single, $150,000 | VCTXX | 3.06% | 4.59% |
| Married, $400,000 | VCTXX | 3.06% | 4.86% |
Keeps is the yield left after every tax. Next best: VMRXX at 3.27%, VMSXX at 3.03% and VMSXX at 3.03%, in the same order. VMFXX, where Vanguard keeps cash unless you move it, keeps 3.26%, 2.76% and 2.62%.
Asked about California
Which money market fund is best in California?
On Vanguard's yields for October 1, 2026, it is VUSXX for a single filer earning $60,000 a year. It is VCTXX for a single filer earning $150,000 a year and a married couple filing jointly on $400,000. The answer moves with yields and with your bracket, which is why the calculator works it out on the day.
Are Treasury money market funds taxed in California?
Not by California. Income from U.S. government obligations is free of state tax, and VUSXX earned all of its 2025 income from them, passing California's test that at least half the fund be U.S. government debt. It is still taxed federally, with the 3.8% on investment income above $200,000 single or $250,000 joint.
Does California tax municipal money market funds?
Yes. California taxes VMSXX's income, though it is free of federal tax. VCTXX, Vanguard's California fund, is free of both.
What is the tax-equivalent yield in California?
It is what a savings account, taxed federally and by California, would have to pay to leave you as much as a fund does. For a single filer earning $150,000 a year in California, VCTXX at 3.06% is as good as 4.59% in savings today.
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 California's 2025 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.