The question is asked because states do not tax government bonds. Federal law prohibits states from taxing this income. Interest and dividend income from obligations of the United States, its territories, and possessions are exempt from state income tax.
You can use this tool from Vanguard to calculate the percentage of the fund’s total ordinary dividends derived from U.S. government obligations in 2024. Click on this link for instructions: Vanguard U.S. government obligations
Click here for additional Vanguard tax information.
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