If in an investment account I bought a US Treasury Bond (<1yr to maturity) on the secondary market with a discount, what are the taxes at maturity (IRS, State, OK-Tax)?

[THill182]

Specifically, do I owe State Taxes on the discount portion of the US Treasury Bond?

[Mike9241 · Accepted solution]

• Income earned from Treasury bills (T-bills) is generally not subject to state tax. 
• However, the treatment of market discount on T-notes may vary by state. Some states may tax the accrued market discount, while others may not.  you need to check with your state or read the instructions to its tax forms