The default tax rates are used by the system as the default values for calculating the tax-adjusted yield for offerings. These settings may also be adjusted on for a specific bond offering on the Bond Detail page.

If the bond offering is issued in the state of residence selected in this form, then the state tax rate is used along with the federal tax rate to calculate a combined effective tax rate. This effective tax rate is then used to calculate the tax-adjusted yield for the security.

If the offering is from a different state that the state of residence value, then only the federal tax rate is used to calculate the tax-adjusted yield.