Triple tax-exempt

(redirected from Triple-Tax-Free)

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 ?
Perot subsequently revealed that he invested his entire $2 billion-plus after-tax gain in a portfolio comprised entirely of triple-tax-free muni bonds, saying: "I don't like filing tax returns, and besides, how much money do you need to live on?