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As the brokerage 1099 forms for the 2024 tax year are coming out, here is a quick reminder for those subject to state and/or local income taxes If you earned interest from a money market fund, a significant portion of this interest may have come from us treasury bills and bonds, which are generally exempt from state and local income taxes. As such it is considered one of the most conservative investment options offered by vanguard Vanguard municipal money market fund’s investment objective is to seek to provide current income that is exempt from federal personal income taxes while maintaining liquidity and a stable share price of $1. Vanguard offers six money market funds Which one is the best for you depends on your preference for convenience and your federal and state tax brackets.