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Best after-tax cash yields in California
Updated Oct 16, 2026 · By Jeison Cobb
Data as of 2026-10-16 12:30 ET · California state tax 13.3% · federal bracket 22%
| # | Account | Yield | After-tax | $ / yr after tax |
|---|---|---|---|---|
| 1 | US T-Bill 52 Weeks US Treasury-backedstate-tax free | 4.47% | 3.49% | $349 |
| 2 | US T-Bill 26 Weeks US Treasury-backedstate-tax free | 4.36% | 3.40% | $340 |
| 3 | US T-Bill 13 Weeks US Treasury-backedstate-tax free | 4.20% | 3.28% | $328 |
| 4 | US T-Bill 4 Weeks US Treasury-backedstate-tax free | 4.07% | 3.17% | $317 |
| 5 | VUSXX (Vanguard Treasury MMF) Fund · not FDIC insuredstate-tax free | 3.88% | 3.03% | $303 |
| 6 | Marcus High-Yield CD (12-mo) Member FDIC | 4.40% | 2.98% | $298 |
| 7 | SGOV (iShares 0-3M Treasury) Fund · not FDIC insuredstate-tax free | 3.74% | 2.92% | $292 |
| 8 | Ally High Yield CD (12-mo) Member FDIC | 4.30% | 2.91% | $291 |
| 9 | BIL (SPDR 1-3M T-Bill) Fund · not FDIC insuredstate-tax free | 3.71% | 2.89% | $289 |
| 10 | SoFi Checking & Savings Member FDIC | 4.20% | 2.84% | $284 |
Min to open / monthly fee come from each provider's own page (see "terms" link); "—" means we couldn't confirm it, so we don't guess. Different federal bracket? Use the full ranking tool.
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How California taxes your cash
California's top state income tax rate is 13.3%. Interest from savings accounts, CDs and most money market funds is taxed by California. Interest from US Treasuries (T-bills, T-bill ETFs like SGOV/BIL, and Treasury money funds) is exempt from state tax by federal law. To match a 4.47% Treasury after tax, a bank account in California needs about 5.16% APY.
Right now in California, the best Treasury option (US T-Bill 52 Weeks, 3.49% after tax) beats the best bank option (Marcus High-Yield CD (12-mo), 2.98% after tax), assuming a 22% federal bracket.
FAQ
What is the best after-tax place for cash in California?
As of 2026-10-16, the top after-tax yield for a 22% federal bracket in California is US T-Bill 52 Weeks at 3.49% (4.47% before tax).
Are T-bills taxed in California?
No. Interest on US Treasury bills is exempt from state and local income tax, including California's income tax. It is still subject to federal income tax.
What is California's state income tax rate on interest?
We use California's top marginal rate of 13.3% (Tax Foundation, 2026). Your actual rate may be lower depending on income.
How is after-tax yield calculated?
Bank interest: yield × (1 − federal rate) × (1 − state rate). Treasuries: yield × (1 − federal rate). We assume a 22% federal bracket on this page; use the home page tool to change it.
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Other states
Method: bank = yield × (1 − federal) × (1 − state); Treasuries = yield × (1 − federal). Uses the state's top marginal rate (Tax Foundation 2026); ignores local tax and partial-exemption rules for government MMFs. Not financial advice. Back to CashYield home.