Which money market fund pays you most in Massachusetts?
On today’s yields, VMSXX leaves a single filer earning $150,000 a year in Massachusetts the most after tax: 3.17% a year, as good as a savings account paying 4.47%.
How Massachusetts taxes each fund
Massachusetts taxes interest at rates from 5% to 9%.
Massachusetts doesn't tax the part of a fund's income that came from U.S. government obligations, whatever else the fund holds. It taxes 33.4% of VMFXX's, 30.4% of VMRXX's and none of VUSXX's income.
Massachusetts taxes interest from other states' bonds, so VMSXX is free of federal tax but not of Massachusetts's.
| 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 | Taxed | 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 Massachusetts's schedule.
Work out yours with your own income and cash.
| Household | Best fund | Keeps | Savings would need |
|---|---|---|---|
| Single, $60,000 | VUSXX | 3.34% | 4.03% |
| Single, $150,000 | VMSXX | 3.17% | 4.47% |
| Married, $400,000 | VMSXX | 3.17% | 4.72% |
Keeps is the yield left after every tax. Next best: VMRXX at 3.29%, VYFXX at 3.13% and VYFXX at 3.13%, in the same order. VMFXX, where Vanguard keeps cash unless you move it, keeps 3.27%, 2.82% and 2.67%.
Asked about Massachusetts
Which money market fund is best in Massachusetts?
On Vanguard's yields for October 1, 2026, it is VUSXX for a single filer earning $60,000 a year. It is VMSXX 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 Massachusetts?
Not by Massachusetts. Income from U.S. government obligations is free of state tax, and VUSXX earned all of its 2025 income from them. It is still taxed federally, with the 3.8% on investment income above $200,000 single or $250,000 joint.
Does Massachusetts tax municipal money market funds?
Yes. Massachusetts taxes VMSXX's income, though it is free of federal tax.
What is the tax-equivalent yield in Massachusetts?
It is what a savings account, taxed federally and by Massachusetts, would have to pay to leave you as much as a fund does. For a single filer earning $150,000 a year in Massachusetts, VMSXX at 3.34% is as good as 4.47% 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 Massachusetts's 2026 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.