SGOV after-tax yield calculator

Most SGOV income comes from US Treasury bills, which are generally exempt from state income tax. See what that means for your after-tax yield and how much a savings account would need to pay to match it.

By the SGOVResource.com editorial team Last reviewed Oct 24, 2026 Data refreshed Oct 24, 2026 How we calculate Editorial policy

SGOV after-tax yield

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Effective tax on SGOV income: —

Taxable-equivalent yield

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A fully taxable account would need to pay this much to match SGOV after tax.

Your comparison rate after tax

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Source: iShares 2025 U.S. Government Source Income Information · Tax year 2025; checked Oct 24, 2026

Examples at today’s SEC yield (3.76%)

SGOV after-tax and taxable-equivalent yield, assuming 95.14% of income is state-exempt
Scenario	Federal	SGOV after tax	Taxable-equivalent
No state income tax (e.g. TX, FL)	24%	2.86%	3.76%
5% state tax	24%	2.85%	4.01%
9.3% state tax	24%	2.84%	4.26%
10.9% state tax	35%	2.42%	4.48%

Formulas

Effective state rate on SGOV = state rate × (1 − exempt share).

SGOV after-tax yield = yield × (1 − federal rate − effective state rate).

Taxable-equivalent yield = SGOV after-tax yield ÷ (1 − federal rate − state rate).

Simplifications: we add federal and state rates directly (ignoring the SALT deduction), ignore AMT, NIIT unless you add it, and local taxes. Taxes for an IRA or 401(k) are deferred or avoided entirely, so this comparison is mainly relevant for taxable accounts.

Frequently asked questions

What is a taxable-equivalent yield?

It is the yield a fully taxable investment (a high-yield savings account, CD, or corporate bond fund) would need to pay to leave you with the same after-tax income as SGOV. It is higher than SGOV’s yield whenever you pay state income tax, because most SGOV income can be excluded from state tax.

Where does the 95.14% figure come from?

iShares publishes the share of each fund’s income that came from US government obligations every year. For tax year 2025, SGOV’s figure was 95.14%. Your state may only exempt the Treasury portion, and a few states require a fund to hold at least 50% government obligations at each quarter end; iShares marks SGOV as meeting that test for 2025. Source document (PDF).

Does this include the 3.8% Net Investment Income Tax?

Not automatically. If NIIT applies to you, add 3.8 to your federal rate. The calculator also ignores the federal deduction for state taxes (SALT), the alternative minimum tax, and local income taxes.

Educational information only. SGOVResource.com is independent and not affiliated with BlackRock or iShares. Nothing here is a recommendation to buy or sell any security or individualized tax advice. Estimates depend on the assumptions shown and actual results will differ. Read the fund’s prospectus before investing. Disclaimer.