Updated November 6, 2026 from live rates
VUSXX vs VMFXX: is Vanguard’s Treasury fund worth switching to?
At today's rates, VUSXX keeps more after tax in all 9 tax scenarios below, by about $32 to $640 a year on $500,000.
After-tax yield by tax situation
Yield you keep after federal and state income tax, at today's rates. The last column is the yearly gap between the best and second-best on $500,000. The 3.8% net investment income tax is left out; it lowers every taxable option by the same share.
| Federal bracket, state tax | VUSXX | VMFXX | Yearly gap |
|---|---|---|---|
| 24%, no state tax | 2.96% | 2.95% | $38 |
| 24%, 5% state | 2.96% | 2.88% | $362 |
| 24%, 9.3% state | 2.96% | 2.83% | $640 |
| 32%, no state tax | 2.65% | 2.64% | $34 |
| 32%, 5% state | 2.65% | 2.57% | $358 |
| 32%, 9.3% state | 2.65% | 2.52% | $636 |
| 37%, no state tax | 2.45% | 2.44% | $32 |
| 37%, 5% state | 2.45% | 2.38% | $355 |
| 37%, 9.3% state | 2.45% | 2.32% | $634 |
What's different
| VUSXX | VMFXX | |
|---|---|---|
| What it is | Treasury money fund (Vanguard)VUSXX, Vanguard Treasury Money Market Fund | Vanguard brokerageVMFXX, Vanguard Federal Money Market (settlement fund) |
| Rate today | 3.89%7-day yieldVerified October 30, 2026 | 3.88%7-day SEC yieldVerified October 30, 2026 |
| Getting your money | Next business day | Same day |
| Protection | Money market fund, not FDIC-insured | Money market fund, not FDIC-insured |
| State income tax | Exempt | 66.6% exempt (2025 notice) |
VMFXX is Vanguard's default settlement fund; VUSXX is its Treasury money market fund, one trade away in the same account. Vanguard's 2025 notice puts VUSXX's income at 100% from U.S. government obligations and VMFXX's at 66.61%, so in a state with income tax VUSXX usually keeps more even at a slightly lower yield. VUSXX needs $3,000 to start; VMFXX as the settlement fund has no minimum. Vanguard's newest public VUSXX yield is a monthly figure, so it's labeled as an estimate until we read a newer one.