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 ?
Guardian's innovative approach to consumer-driven healthcare packages a High-Deductible Healthcare Plan (HDHP) with a triple tax-free Health Savings Account (HSA) and supplemental critical illness coverage.
Typically, the IDA can act as a conduit to issue triple tax-free revenue bonds toward the construction of manufacturing facilities, while other deep pocketed tenants might simply obtain the right to spend money on fixtures and furnishings without paying city or state taxes.
These products are designed for investors looking for triple tax-free income from a portfolio of state-specific municipal bonds insured by Municipal Bond Investors Assurance Corporation (MBIA).