Triple tax-exempt

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Triple tax-exempt

Municipal bonds featuring federal, state, and local tax-free interest payments.

Triple Tax-Exempt

Describing a municipal bond that is exempt from federal, state, and local taxes. The United States Constitution forbids the federal government from taxing any state and local bonds. Most states and municipalities offer tax exemptions for residents who invest in their bonds; thus, to be eligible for triple-tax-free status, a bondholder must be resident in the municipality and/or state issuing the bond. Triple-tax exempt bonds almost always offer low returns, exposing bondholders to inflation risk. See also: After-Tax Basis.
References in periodicals archive ?
65 Congressional Record 10373, 10409 (1918), House Hearings on Tax Exempt Securities, 67th Cong.
265(a)(2) is only applicable where the indebtedness is incurred or continued for the purpose of purchasing or carrying tax exempt securities.