---
title: "$1 million in municipal bonds generates $50,000 tax-free income that beats Treasury returns"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284921599.md"
description: "A $1 million municipal bond portfolio yielding 5% generates $50,000 annually in tax-free interest income. For a married couple in the top tax bracket, achieving the same after-tax income would require approximately $79,365 in taxable bond income. Municipal bonds are issued by various governmental entities."
datetime: "2026-05-01T16:41:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284921599.md)
  - [en](https://longbridge.com/en/news/284921599.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284921599.md)
---

# $1 million in municipal bonds generates $50,000 tax-free income that beats Treasury returns

A $1 million municipal bond portfolio yielding 5% generates $50,000 per year in interest income that the federal government cannot touch. For a married couple in the top tax bracket, that same $50,000 would require roughly $79,365 in taxable bond income to produce the same after-tax result. Municipal bonds are issued by states, cities, school distr...

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