Which money market fund pays you most in New York?
On today’s yields, VYFXX leaves a single filer earning $150,000 a year in New York the most after tax: 3.30% a year, as good as a savings account paying 4.71%.
How New York taxes each fund
New York taxes interest at rates from 3.9% to 10.9%.
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 New York taxes 33.4% of VMFXX's, 30.4% of VMRXX's and none of VUSXX's income.
New York taxes interest from other states' bonds, so VMSXX is free of federal tax but not of New York's.
VYFXX, Vanguard's New York 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 | Free | 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 New York's schedule.
Work out yours with your own income and cash.
| Household | Best fund | Keeps | Savings would need |
|---|---|---|---|
| Single, $60,000 | VUSXX | 3.34% | 4.05% |
| Single, $150,000 | VYFXX | 3.30% | 4.71% |
| Married, $400,000 | VYFXX | 3.30% | 5.05% |
Keeps is the yield left after every tax. Next best: VYFXX at 3.30%, VMSXX at 3.14% and VMSXX at 3.11%, in the same order. VMFXX, where Vanguard keeps cash unless you move it, keeps 3.27%, 2.81% and 2.65%.
Asked about New York
Which money market fund is best in New York?
On Vanguard's yields for October 1, 2026, it is VUSXX for a single filer earning $60,000 a year. It is VYFXX 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 New York?
Not by New York. Income from U.S. government obligations is free of state tax, and VUSXX earned all of its 2025 income from them, passing New York'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 New York tax municipal money market funds?
Yes. New York taxes VMSXX's income, though it is free of federal tax. VYFXX, Vanguard's New York fund, is free of both.
What is the tax-equivalent yield in New York?
It is what a savings account, taxed federally and by New York, would have to pay to leave you as much as a fund does. For a single filer earning $150,000 a year in New York, VYFXX at 3.30% is as good as 4.71% 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 New York'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.