Best money market funds, ranked by what you keep after tax
Today Vanguard Treasury Money Market Fund (VUSXX) keeps the most: about $1,517 a year on $50,000 after 22% federal and 5% state tax, at a 3.89% 7-day yield (Oct 30). The winner changes with your state and broker, so set yours below. No paid rankings.
Today’s money market fund rates, after tax
Ranked by what $50,000 keeps in a year after 22% federal and 5% state tax. Change the balance and taxes in the table once it loads.
| Option | Rate | Kept / yr | Access and protection |
|---|---|---|---|
| Treasury money fund (Vanguard)VUSXX, Vanguard Treasury Money Market Fund | 3.89% SourceOct 30 | $1,517 | Next business day. Money market fund, not FDIC-insured |
| Treasury-only money fund (Fidelity, via Merrill)FSIXX, Fidelity Treasury Only Portfolio, on Merrill | 3.84% SourceOct 30 | $1,497 | Next business day. Money market fund, not FDIC-insured |
| Cash Reserves Federal money fund (Vanguard)VMRXX, Vanguard Cash Reserves Federal Money Market Fund (Admiral) | 3.89% SourceOct 30 | $1,488 | Next business day. Money market fund, not FDIC-insured |
| Vanguard brokerageVMFXX, Vanguard Federal Money Market (settlement fund) | 3.88% SourceOct 30 | $1,481 | Same day. Money market fund, not FDIC-insured |
| U.S. Treasury money fund (Schwab)SNSXX, Schwab U.S. Treasury Money Fund | 3.62% SourceNov 2 | $1,412 | Next business day. Money market fund, not FDIC-insured |
| Treasury-only money fund (Fidelity)FDLXX, Fidelity Treasury Only Money Market Fund | 3.61% SourceOct 30 | $1,407 | Next business day. Money market fund, not FDIC-insured |
| Government Cash Reserves (Fidelity)FDRXX, Fidelity Government Cash Reserves | 3.64% SourceNov 1 | $1,376 | Next business day. Money market fund, not FDIC-insured |
| Prime money fundSWVXX, Schwab Prime Advantage Money Fund | 3.77% SourceOct 30 | $1,376 | Next business day. Money market fund, not FDIC-insured |
| Government money fund (Schwab)SNVXX, Schwab Government Money Fund | 3.62% SourceOct 30 | $1,354 | Next business day. Money market fund, not FDIC-insured |
| Treasury money fund (Fidelity)FZFXX, Fidelity Treasury Money Market Fund | 3.55% SourceNov 1 | $1,350 | Next business day. Money market fund, not FDIC-insured |
| Money Market Fund (Fidelity, prime)SPRXX, Fidelity Money Market Fund | 3.65% SourceNov 1 | $1,346 | Next business day. Money market fund, not FDIC-insured |
| Fidelity brokerage (SPAXX core)SPAXX, Fidelity Government Money Market | 3.56% SourceNov 1 | $1,345 | Same day. Money market fund, not FDIC-insured |
| Treasury Obligations money fund (Schwab)SNOXX, Schwab Treasury Obligations Money Fund | 3.60% SourceOct 30 | $1,342 | Next business day. Money market fund, not FDIC-insured |
| Municipal money fund (Schwab)SWTXX, Schwab Municipal Money Fund | 2.17% SourceOct 30 | $1,031 | Next business day. Money market fund, not FDIC-insured |
| Municipal money fund (national)MCSXX, BlackRock Liquidity Funds MuniCash, on Merrill | 2.12% SourceOct 30 | $1,007 | Next business day. Money market fund, not FDIC-insured |
| Municipal money fund (not your state's)FFTXX, Federated Hermes Institutional Tax-Free Cash Trust, on Merrill | 2.02% SourceOct 30 | $960 | Next business day. Money market fund, not FDIC-insured |
How to read this table. The 7-day yield is already after the fund’s expenses. “Kept / yr” is the yield minus federal tax, minus state tax on the part of the income that isn’t U.S. government interest. Each rate links to the fund company’s page and shows the day we read it; a rate more than a month old is marked as an estimate and ranked last.
The best fund at your broker
You don’t need a new account. Each broker below has a better money fund one trade away from its default.
If you’re at Fidelity
Default: SPAXX, 3.56%. Better: FDLXX, 3.61%, keeping about $1,407 a year on $50,000, $62 more.
How to buy it at FidelityIf you’re at Vanguard
Default: VMFXX, 3.88%. Better: VUSXX, 3.89%, keeping about $1,517 a year on $50,000, $36 more.
How to buy it at VanguardIf you’re at Schwab
Default: Bank Sweep / Schwab One Interest, 0.01%. Better: SNSXX, 3.62%, keeping about $1,412 a year on $50,000, $1,408 more.
How to buy it at SchwabIf you’re at Merrill
Default: Merrill Lynch Bank Deposit Program, 0.01%. Better: FSIXX, 3.84%, keeping about $1,497 a year on $50,000, $1,494 more.
How to buy it at MerrillSide by side, in every tax bracket: FDLXX vs SPAXX · VUSXX vs VMFXX. Elsewhere? See what your broker pays by default and the step-by-step guides for 12 brokers.
Why your state changes the winner
States don’t tax interest from U.S. Treasuries. A money fund passes that exemption through only for the share of its income that came from U.S. government obligations. So the same three funds rank differently by state. What each keeps in a year on $50,000, at today’s rates and 22% federal:
| Where you live | SWVXXPrime, 3.77% | SPAXXGovernment, 3.56% | FDLXXTreasury, 3.61% |
|---|---|---|---|
| No state income tax (Texas, Florida, Washington…) | $1,470 | $1,388 | $1,408 |
| 5% state tax | $1,376 | $1,345 | $1,407 |
| California, 9.3% | $1,295 | $1,307 | $1,406 |
Bold is the winner in each row. California, Connecticut and New York give the exemption only if a fund held at least 50% in U.S. government obligations at every quarter-end; funds that met it are marked below.
Each fund’s state-exempt share, and where it comes from
| Fund | Share from U.S. government | Tax year | CA, CT, NY 50% test |
|---|---|---|---|
| VUSXXVUSXX, Vanguard Treasury Money Market Fund | 100.00% | 2025 Notice | Meets it |
| SNSXXSNSXX, Schwab U.S. Treasury Money Fund | 99.99% | 2025 Notice | Meets it |
| FSIXXFSIXX, Fidelity Treasury Only Portfolio, on Merrill | 99.59% | 2025 Notice | Meets it |
| FDLXXFDLXX, Fidelity Treasury Only Money Market Fund | 98.67% | 2025 Notice | Meets it |
| VMRXXVMRXX, Vanguard Cash Reserves Federal Money Market Fund (Admiral) | 69.58% | 2025 Notice | Meets it |
| VMFXX (broker default)VMFXX, Vanguard Federal Money Market (settlement fund) | 66.61% | 2025 Notice | Meets it |
| FZFXXFZFXX, Fidelity Treasury Money Market Fund | 61.52% | 2025 Notice | Doesn’t |
| FDRXXFDRXX, Fidelity Government Cash Reserves | 52.17% | 2025 Notice | Doesn’t |
| SPAXX (broker default)SPAXX, Fidelity Government Money Market | 50.90% | 2025 Notice | Meets it |
| SNVXXSNVXX, Schwab Government Money Fund | 36.20% | 2025 Notice | Doesn’t |
| SNOXXSNOXX, Schwab Treasury Obligations Money Fund | 31.30% | 2025 Notice | Doesn’t |
| SPRXXSPRXX, Fidelity Money Market Fund | 14.56% | 2025 Notice | Doesn’t |
| SWVXXSWVXX, Schwab Prime Advantage Money Fund | 0.00% | — | No |
Don’t go by the name. Schwab Treasury Obligations Money Fund (SNOXX) got 31.30% of its 2025 income from U.S. government obligations and doesn’t meet the California, Connecticut and New York test; Fidelity Treasury Money Market Fund (FZFXX) got 61.52% of its 2025 income from U.S. government obligations and doesn’t meet the California, Connecticut and New York test. Funds with “Treasury” in the name can earn much of their income from repurchase agreements, which states tax. Check the share, not the label.
Shares come from each fund company’s tax notice for 2025 income, published in January. Municipal funds are left out: their income is free of federal tax instead. How much the state exemption is worth in each state.
Treasury, government, prime or municipal: which type fits
Treasury funds
Pick this if you pay state income tax. Holds U.S. Treasuries, so nearly all of its income skips state tax. Examples: VUSXX, FDLXX, SNSXX, FSIXX.
Government funds
A close second. Holds Treasuries plus repurchase agreements and agency debt, so only part of its income skips state tax. Examples: VMFXX, SPAXX, SNVXX.
Prime funds
Pick this in a state with no income tax or in an IRA. Holds bank and company debt for a slightly higher yield, all of it state-taxable. Examples: SWVXX.
Municipal funds
Pick this only in a very high bracket. Free of federal tax, but the yield is much lower and usually still taxed by your state. Examples: SWTXX, FFTXX, MCSXX.
Money market fund vs T-bills vs high-yield savings
A 3-month Treasury bill pays 4.19% today and is fully state-exempt, but you hold it to a date. A money fund can be sold any business day. A high-yield savings account is FDIC-insured but taxed by your state. Side by side: T-bills vs money market funds, high-yield savings vs money market funds, brokerage sweep vs money market fund, municipal vs taxable money funds.
In an IRA, the ranking changes
Inside an IRA there’s no tax each year, so the state exemption is worth nothing and the highest yield wins. By 7-day yield today: VUSXX 3.89%, VMRXX 3.89%, VMFXX 3.88%, FSIXX 3.84%.
Is a money market fund safe?
Money market funds aren’t FDIC-insured, but they hold short-term, high-quality debt and aim for a steady $1 share price; falling below $1 has been very rare. Treasury and government funds carry the least credit risk. The SEC’s Investor.gov explains the rules.
Questions
Which money market fund pays the most after tax right now?
As of October 30, 2026, Vanguard Treasury Money Market Fund (VUSXX) keeps the most of the 16 money market funds we track for a taxpayer in the 22% federal bracket with 5% state tax: about $1,517 a year on $50,000, at a 3.89% 7-day yield. It also wins in a state with no income tax, because it has the highest yield as well. Rates are read from each fund company's own page; your result depends on your bracket and state.
Are money market funds exempt from state income tax?
Partly, depending on the fund. Interest from U.S. Treasury securities is exempt from state and local income tax, and a money market fund passes that through only for the share of its income from U.S. government obligations, which the fund company publishes each year. For 2025, Vanguard's Treasury fund (VUSXX) reported 100%, Fidelity's Treasury Only fund (FDLXX) 98.67%, Schwab's U.S. Treasury fund (SNSXX) 99.99%, Vanguard Federal (VMFXX) 66.61% and Fidelity Government (SPAXX) 50.90%; Schwab's Treasury Obligations fund (SNOXX) only 31.30%, despite its name; a prime fund such as SWVXX is fully state-taxable. California, Connecticut and New York allow the exemption only if the fund held at least 50% in U.S. government obligations at each quarter-end.
What is the best money market fund at Fidelity, Vanguard or Schwab?
For a taxable account in a state with income tax, the Treasury fund at each broker usually keeps the most. At Fidelity, FDLXX keeps about $1,407 a year on $50,000, $62 more than the default SPAXX; At Vanguard, VUSXX keeps about $1,517 a year on $50,000, $36 more than the default VMFXX; At Schwab, SNSXX keeps about $1,412 a year on $50,000, $1,408 more than the default Bank Sweep / Schwab One Interest; At Merrill, FSIXX keeps about $1,497 a year on $50,000, $1,494 more than the default Merrill Lynch Bank Deposit Program. In an IRA or a state with no income tax, the highest 7-day yield wins. You buy any of them with one trade in the account you already have.
Does the 7-day yield already include the expense ratio?
Yes. A money market fund’s 7-day SEC yield is reported after the fund’s expenses, so don’t subtract the expense ratio again.
Is a money market fund FDIC-insured? Can I lose money?
No, money market funds are not FDIC-insured. They aim to keep a stable $1 share price, and government and Treasury funds hold the least credit risk; a fund falling below $1 has been very rare. Bank savings accounts and CDs are FDIC-insured up to $250,000 per depositor, per bank.
Which money market fund is best in an IRA?
State and federal tax aren't taken each year inside an IRA, so rank by the 7-day yield alone. Today the highest taxable-fund yield we track is Vanguard Treasury Money Market Fund (VUSXX) at 3.89%.
How we check these numbers
Every yield is read from the fund company’s own page or a broker’s rate sheet, with the date shown next to it; the newest is November 2, 2026. State-exempt shares come from each fund company’s tax notice. The math assumes your top federal bracket and a single state rate. Full method.