Tax
How is Treasury bond interest taxed?
Quick Answer
Treasury interest (T-bills, notes, bonds, TIPS) is fully federally taxable as ordinary income but completely exempt from state and local income tax. Reported on Form 1099-INT box 3 — especially valuable in high-tax states like CA or NY.
Warren Team
Updated April 26, 2026
37
Warren Team
Updated April 26, 2026
37
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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