Treasury Bill vs Money Market Yield 2027 Calculator
T-Bills 2027 yield similar to money market funds (4.5-5.5% typical) but T-Bill interest exempt from state + local income tax. For 9-13% state-tax brackets (CA, NY, NJ), T-Bills add 50-100bps after-tax. Money market funds easier (no maturity ladder). 4-week T-Bill auto-rollover via TreasuryDirect or brokerage.
State Tax Exemption
T-Bills, T-Notes, T-Bonds, TIPS — all interest exempt from state + local income tax. Federal income tax still applies. Money market funds: fully taxable.
Liquidity Comparison
Money market: T+0 or T+1 settlement. Daily liquidity. T-Bill: 4/8/13/17/26/52 week maturity. Sell before maturity = price risk on rate moves.
Brokered T-Bill
Buy via Fidelity, Schwab, Vanguard. Auto-rollover 4-week T-Bill creates synthetic money market with state tax exemption. Or TreasuryDirect.gov for direct purchase.
Source and Disclaimer
TreasuryDirect.gov, IRS Pub 550. Yields as of May 2026 — refresh daily.
Source: TreasuryDirect.gov, IRS Pub 550. Last updated: May 2026.