Skip to content Personal Investing

Choose a site

Enterprise Corporate Personal Investing Workplace Retirement Financial Advisors/Intermediaries Institutional Investors/Consultants Recordkeeping Sponsors/Consultants
United States
English United States

Localization Settings

Current Selection

Americas

(1 item)
United States
English United States
United States
English
Help Account Types

Account Types

Whether you’re saving for retirement, planning for your family’s future, or investing your extra cash, we can help you get started.

Explore All Account Types

Retirement

Retirement Explore Retirement IRAs Roth IRA Traditional IRA Rollover 401(k) & Transfer IRA Small Business, Self-Employed & 403(b) Plans

Retirement Guidance

Retirement Guidance Saving for Retirement Approaching Retirement Living in Retirement Roth vs. Traditional IRA Rollover 401(k) Options

General Investing

General Investing Explore General Investing Individual Joint Trust Minor

College Savings

College Savings Explore College Savings T. Rowe Price College Savings Plan Maryland College Investment Plan Alaska 529

Brokerage

Brokerage Explore Brokerage
Funds

Funds

Our wide selection of mutual funds and ETFs provides you with the building blocks for a diversified portfolio.

Explore Funds

Mutual Funds

Mutual Funds Learn about Mutual Funds View All Mutual Funds Compare Mutual Funds T. Rowe Price® Select Funds Morningstar 4- & 5-Star Rated Funds Stock Funds Bond Funds Target Date Funds Asset Allocation Funds Money Market Funds Daily Prices Historical Performance Mutual Fund Dividend Distributions Mutual Fund Prospectuses & Reports I Class Shares Closed Funds

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) Learn about ETFs View All ETFs ETF Dividend Distributions ETF Prospectuses & Reports
Advice

Advice

Our Advice solutions apply our decades of investing experience to help you meet your goals.

View Advice Solutions

Retirement Advisory ServiceTM

Retirement Advisory ServiceTM

Partnering with your advisor, set actionable strategies for your investments and retirement planning.

Explore Retirement Advisory Service

The ActivePlus Portfolios® Program

The ActivePlus Portfolios® Program

Get a model portfolio recommendation based on your timeline and risk tolerance – in minutes.

Explore the ActivePlus Portfolios Program

Private Asset Management

Private Asset Management

Direct access to a dedicated portfolio manager who actively manages your assets of $5 million +.

Explore Private Asset Management
Resources

Resources

Investment planning resources for your many financial goals.

Explore Resources

Tools

Tools Explore Tools Compare Funds My Watchlist Retirement Income Calculator Automatic Buy Research & Analysis

Planning

Planning Explore Planning Investing Basics Required Minimum Distributions College Savings Planning Asset Allocation Planning Tax Planning Estate Planning Social Security Planning Charitable Giving

Insights

Insights Explore Insights Markets & Economy Personal Finance Retirement Planning Retirement Savings Asset Allocation Equities Fixed Income

Life Events

Life Events Explore Life Events Inheriting an Account Job Change Family Events
About Us

About Us

Learn how we've focused since 1937 on one simple goal: to help you achieve yours.

Learn About Us

Why T. Rowe Price?

Why T. Rowe Price?

Discover how our approach has set us apart for over 80 years, and has helped millions of people invest in things that matter most.

Explore Why T. Rowe Price

Summit Program Exclusive Client Benefits

Summit Program Exclusive Client Benefits

Learn about our complimentary client benefits program designed to help you invest more confidently.

Learn about the Summit Program
Open an Account
United States
English United States

2024 Tax Information for Tax-Free Funds

In this section, you will find information to assist you in meeting state and federal tax reporting requirements for your T. Rowe Price Tax-Free Fund investments. The total tax-free income earned on each of your tax-free investments and the portion, if any, subject to the alternative minimum tax (AMT) calculation are reported on your Form 1099-DIV, which is mailed to you in late January.

Municipal Bond Funds Tax Facts

Exhibit 1—Sources of National Tax-Free Funds' Income

Exhibit 2—Taxability of State Tax-Free Funds' Dividend Income

Exhibit 3—Percentage of Income to Include in the Alternative Minimum Tax Calculation

Municipal Bond Funds Tax Facts

Although income dividends from municipal bond funds are generally exempt from federal tax, here are some reminders:

  • Exempt-interest dividends paid from T. Rowe Price Tax-Free Funds are reported to the IRS. This amount, which you also must report to the IRS on your tax return, is shown in Box 12 of your Form 1099-DIV and must be reported on your Form 1040 along with any other tax-exempt interest or dividends you may have received. 

  • Income dividends from municipal bond funds may be subject to state and local income taxes.
  • You may have to include a portion of your exempt-interest dividends in your calculation of the AMT (see Exhibit 3—Percentage of Income to Include in the AMT Calculation). This information is reported in Box 13 of your Form 1099-DIV. 

  • Tax-free funds' capital gains are subject to federal, state, and local taxes. The same rules apply if you have sold shares of tax-free funds. 
  • Fund capital gain distributions (if any) are reported on Form 1099-DIV—mailed in late January (mid-February for T. Rowe Price Real Assets, Real Estate, Global Real Estate, Mid-Cap Value, and Small-Cap Value Funds) 

  • Proceeds from your own sales of fund shares are reported on Form 1099-B—mailed in late January (mid-February for T. Rowe Price Real Assets, Real Estate, Global Real Estate, Mid-Cap Value, and Small-Cap Value Funds) 

  • If you receive tax-free income and receive Social Security benefits, your benefits are subject to an increase in income taxes. 

Because of the complexity and diversity of state requirements, you may want to consult a tax professional or contact your state tax authority on taxability of income and gains and other reporting requirements. If you need help regarding your personal federal tax filings, you may want to consult a tax professional or contact the IRS.

Exhibit 1— Sources of National Tax-Free Funds' Income

Depending on your state's tax laws, the portion of your income dividend attributable to interest earned by a fund on securities issued by your state may be exempt from your state's tax. Please check your state's requirements. To determine this portion, multiply (1) the percentage of your fund's dividend that may be exempt from your state's income tax listed below by (2) the amount of exempt-interest dividends for your fund as reported in Box 12 of your Form 1099-DIV. In addition, check your state's rules to see if you also may exclude the percentages attributable to U.S. territories. 

T. Rowe Price Tax-Free Funds*
Origin Intermediate Tax-Free High Yield Tax-Free High Yield Tax-Free Income Tax-Exempt Money Tax-Free Short-Intermediate
Alabama 2.02% 1.53% 1.58% 0.00% 3.89%
Alaska 0.04% 0.01% 0.15% 0.72% 0.21%
Arizona 1.99% 1.53% 1.27% 1.34% 1.48%
Arkansas 0.32% 1.38% 0.00% 0.00% 0.00%
California1 4.46% 7.37% 7.47% 6.53% 5.08%
Colorado 3.46% 4.19% 2.66% 2.24% 5.29%
Connecticut 0.82% 1.24% 0.54% 0.95% 2.32%
Delaware 2.80% 0.93% 0.57% 0.00% 0.01%
District of Columbia 1.75% 2.42% 3.20% 1.76% 2.85%
Florida 6.50% 4.79% 5.22% 5.38% 5.53%
Georgia 2.89% 2.78% 7.80% 3.21% 5.55%
Hawaii 0.00% 0.00% 0.00% 0.19% 0.19%
Idaho 0.13% 0.59% 0.11% 0.07% 0.00%
Illinois2 6.33% 5.60% 6.02% 3.06% 6.26%
Indiana3 11.05% 12.08%  8.94% 2.47% 7.94%
Iowa4 0.03% 0.02% 0.02% 0.20% 0.74%
Kansas 0.18% 0.08% 0.29% 0.81% 0.00%
Kentucky 1.97% 2.12% 2.05% 0.51% 1.56%
Louisiana 1.70% 1.26% 1.51% 1.47% 0.42%
Maine 0.00% 0.00% 0.00% 0.02% 0.00%
Maryland 8.53% 5.03% 8.25% 6.02% 7.51%
Massachusetts 0.12% 0.53% 0.95% 1.34% 0.45%
Michigan 2.35% 1.27% 2.40% 2.64% 1.66%
Minnesota1 0.30% 0.16% 0.53% 2.52% 1.13%
Mississippi 0.02% 0.01% 0.02% 1.08% 0.00%
Missouri 0.87% 2.20% 2.52% 2.20% 1.00%
Montana 0.00% 0.42% 0.00% 0.00% 0.00%
Nebraska 0.00% 0.05% 0.04% 0.84% 0.18%
Nevada 0.49% 0.35% 1.31% 1.31% 0.79%
New Hampshire 1.23% 0.39% 0.83% 0.00% 0.00%
New Jersey 2.71% 2.40% 5.22% 0.80% 4.98%
New Mexico 0.00% 0.00% 0.01% 0.00% 0.00%
New York 5.20% 4.59% 8.17% 10.94% 5.01%
North Carolina 0.91% 1.82% 3.06% 0.15% 3.73%
North Dakota 0.39% 0.00% 0.00% 0.00% 0.00%
Ohio 2.54% 5.77% 3.52% 3.57% 1.02%
Oklahoma4 0.95% 1.65% 1.22% 0.48% 0.18%
Oregon 0.02% 0.24% 0.03% 1.59% 1.12%
Pennsylvania 4.37% 5.22% 2.57% 2.92% 1.19%
Rhode Island 0.12% 0.11% 0.00% 0.98% 0.14%
South Carolina 1.12% 1.19% 1.44% 2.82% 1.27%
South Dakota 0.00% 0.26% 0.53% 1.87% 0.05%
Tennessee 0.77% 0.82% 1.54% 2.42% 1.17%
Texas 6.95% 7.05% 5.84% 14.42% 8.58%
Utah5 28.11% 27.02% 23.11% 28.97% 31.51%
Vermont 0.00% 0.00% 0.00% 0.00% 0.00%
Virginia 4.72% 4.54% 8.11% 4.63% 7.52%
Washington 1.65% 1.16% 1.58% 1.09% 2.65%
West Virginia 1.15% 0.34% 0.05% 0.00% 0.00%
Wisconsin4 3.86% 3.66% 0.41% 2.75% 0.39%
Wyoming 0.00% 0.00% 0.00% 0.00% 0.00%
U.S. Territories
Guam 0.42% 0.26% 0.00% 0.00% 0.00%
Northern Marianas 0.00% 0.00% 0.00% 0.00% 0.00%
Puerto Rico 8.64% 8.02% 3.25% 0.00% 7.89%
Virgin Islands 0.00% 0.00% 0.00% 0.00% 0.00%
Summit Municipal Funds*
Origin Summit Municipal Income Summit Municipal Intermediate
Alabama 1.47% 2.82%
Alaska 0.00% 0.16%
Arizona 2.04% 1.98%
Arkansas 0.46% 0.00%
California1 10.94% 6.97%
Colorado 2.66% 2.69%
Connecticut 1.12% 1.40%
Delaware 0.61% 0.15%
District of Columbia 3.39% 3.77%
Florida 6.54% 4.68%
Georgia 5.49% 6.80%
Hawaii 0.13% 0.29%
Idaho 0.44% 0.37%
Illinois2 3.13% 4.34%
Indiana3 4.27% 6.54%
Iowa4 0.14% 0.50%
Kansas 0.42% 0.21%
Kentucky 1.09% 1.37%
Louisiana 1.16% 0.57%
Maine 0.00% 0.00%
Maryland 6.82% 3.51%
Massachusetts 0.73% 1.63%
Michigan 2.25% 3.73%
Minnesota1 0.65% 0.49%
Mississippi 0.01% 0.00%
Missouri 0.98% 0.96%
Montana 0.00% 0.13%
Nebraska 0.20% 0.14%
Nevada 0.68% 0.13%
New Hampshire 0.57% 0.42%
New Jersey 4.46% 3.12%
New Mexico 0.01% 0.04%
New York 9.38% 10.15%
North Carolina 3.20% 1.76%
North Dakota 0.00% 0.00%
Ohio 2.20% 1.00%
Oklahoma4 1.08% 0.00%
Oregon 0.52% 0.53%
Pennsylvania 2.57% 1.26%
Rhode Island 0.00% 0.14%
South Carolina 0.98% 0.54%
South Dakota 0.53% 0.07%
Tennessee 1.09% 1.86%
Texas 8.86% 8.78%
Utah5 27.84% 31.79%
Vermont 0.00% 0.00%
Virginia 7.12% 10.26%
Washington 1.83% 3.85%
West Virginia 0.13% 0.22%
Wisconsin4 1.43% 1.08%
Wyoming 0.00% 0.00%
U.S. Territories
Guam 0.04% 0.00%
Northern Marianas 0.00% 0.00%
Puerto Rico 3.31% 6.30%
Virgin Islands 0.00% 0.00%
T. Rowe Price ETFs 
Origin Intermediate Municipal Income ETF
Alabama 3.55%
Alaska 0.47%
Arizona 3.78%
Arkansas 0.00%
California1 6.90%
Colorado 3.96%
Connecticut 3.73%
Delaware 4.42%
District of Columbia 1.00%
Florida 5.77%
Georgia 7.74%
Hawaii 2.38%
Idaho 4.59%
Illinois2 5.31%
Indiana3 3.80%
Iowa4 0.12%
Kansas 0.00%
Kentucky 0.64%
Louisiana 0.07%
Maine 0.00%
Maryland 4.77%
Massachusetts 0.40%
Michigan 0.18%
Minnesota1 0.00%
Mississippi 0.00%
Missouri 1.56%
Montana 0.00%
Nebraska 0.00%
Nevada 0.00%
New Hampshire 1.63%
New Jersey 6.34%
New Mexico 0.00%
New York 2.89%
North Carolina 1.89%
North Dakota 0.00%
Ohio 0.22%
Oklahoma4 0.00%
Oregon 0.03%
Pennsylvania 0.95%
Rhode Island 0.00%
South Carolina 0.59%
South Dakota 0.00%
Tennessee 1.19%
Texas 7.38%
Utah5 23.16%
Vermont 0.00%
Virginia 7.60%
Washington 4.65%
West Virginia 0.00%
Wisconsin4 0.41%
Wyoming 0.00%
U.S. Territories
Guam 0.00%
Northern Marianas 0.00%
Puerto Rico 2.71%
Virgin Islands 0.00%

Note: Column totals may add up to more than 100% because income on some bonds is exempt in more than one state.

*Percentages are the same for all fund classes (Investor, Advisor, and I classes).

1All of the dividend income is subject to state tax because minimum threshold requirements were not met.

2Illinois does not exempt the portion of dividends from state or local obligations held indirectly through a mutual fund.

3Includes interest earned on obligations of Indiana and U.S. territories, as well as non-Indiana obligations that the fund acquired before January 1, 2012.

4Some dividend income may be subject to tax. Only certain specified obligations are exempt in this state. Please consult with your tax professional.

5Includes interest earned on Utah and applicable non-Utah obligations, including U.S. territories, and interest on certain states' obligations acquired before January 1, 2003.

Exhibit 2— Taxability of State Tax-Free Funds' Dividend Income

All of the funds' dividends are exempt from federal income tax, and certain portions also will be exempt from state taxes for investors filing in that state.

To determine the state tax treatment of your fund dividends, multiply the percentage shown below by each fund's tax-free dividend income shown in Box 12 of your Form 1099-DIV. This amount is exempt from state tax. 

Taxability of State Tax-Free Funds' Dividend Income
T. Rowe Price Tax-Free Fund* Percent of Dividend Income Exempt from State Tax
California Tax-Free Bond 100.00%
Georgia Tax-Free Bond 99.89%
Maryland Short-Term Tax-Free Bond 100.00%
Maryland Tax-Free Bond 100.00%
Maryland Tax-Free Money 93.59%
New Jersey Tax-Free Bond 100.00%
New York Tax-Free Bond 100.00%
Virginia Tax-Free Bond 99.80%

*Percentages are the same for the Investor and I Classes.

Exhibit 3— Percentage of Income to Include in the Alternative Minimum Tax Calculation

This table is relevant only for investors who must calculate the AMT. It reflects the percentage of income earned by each tax-free fund from investments in "private activity" bonds. Such income is subject to the AMT calculation.

Please note that this table is for informational purposes only. The portion of your exempt-interest dividends, if any, subject to the AMT calculation is reported in Box 13 of your Form 1099-DIV. Please use the Box 13 amount when preparing your tax return, if applicable.

Percentage of Income to Include in the Alternative Minimum Tax Calculation
T. Rowe Price Tax-Free Fund* Percent of Fund Income Subject to AMT
California Tax-Free Bond 13.62%
Georgia Tax-Free Bond 8.29%
Intermediate Tax-Free High Yield 15.29%
Maryland Short-Term Tax-Free Bond 6.08%
Maryland Tax-Free Bond 8.10%
Maryland Tax-Free Money 8.11%
New Jersey Tax-Free Bond 18.96%
New York Tax-Free Bond 11.69%
Summit Municipal Income 22.09%
Summit Municipal Intermediate 17.88%
Tax-Exempt Money 0.00%
Tax-Free High Yield 16.13%
Tax-Free Income 0.00%
Tax-Free Short-Intermediate 14.06%
Virginia Tax-Free Bond 17.44%
T. Rowe Price ETF Percent of Fund Income Subject to AMT
Intermediate Municipal Income ETF 15.53%

*Percentages are the same for all fund classes (Investor, Advisor, and I classes).

202501-4164302

Related Content