Taxable Equivalent Yield Chart (Structures)

Taxable Equivalent Yield  | Value of Structured Settlement Tax Benefit
Structured settlements offer significant tax benefits even at lower interest rates. Structured settlement payments are income tax free if payments represent damages that qualify under IRC §104(a)(1), §104(a)(2), and §139F. Other structured settlements offer tax deferral. The taxable equivalent yield chart helps you quickly and easily compare the yield on a structured settlement to the yield on a taxable investment by simplying referring to the chart.

Taxable Equivalent Yield Chart  
TAXABLE EQUIVALENT YIELD
Compare the higher taxable interest required to equal income tax-free structured settlement
accumulation at various structured settlement internal rates of return
Tax-Free Rate 15% taxable 18% taxable 28% taxable 31% taxable 33% taxable 35% taxable 38% taxable 40% taxable
2.0% 2.35 2.44 2.78 2.90 2.99 3.08 3.23 3.33
3.0% 3.53 3.66 4.17 4.35 4.48 4.62 4.84 5.00
4.0% 4.71 4.88 5.56 5.80 5.97 6.15 6.45 6.67
5.0% 5.88 6.10 6.94 7.25 7.46 7.69 8.06 8.47
5.5% 6.47 6.71 7.64 7.97 8.21 8.46 8.87 9.32
6.0% 7.06 7.32 8.33 8.70 8.96 9.23 9.68 10.17
6.5% 7.65 7.93 9.03 9.42 9.70 10.00 10.48 11.02
7.0% 8.24 8.54 9.72 10.14 10.45 10.77 11.29 11.86
7.5% 8.82 9.15 10.42 10.87 11.19 11.54 12.10 12.71
8.0% 9.41 9.76 11.11 11.59 11.94 12.31 12.90 13.56
8.5% 10.00 10.37 11.81 12.32 12.69 13.08 13.71 14.41
9.0% 10.59 10.98 12.50 13.04 13.43 13.85 14.52 15.25
9.5% 11.18 11.59 13.19 13.77 14.18 14.62 15.32 16.10
10% 11.76 12.20 13.89 14.49 14.93 15.38 16.13 16.95
 
NET TAXABLE YIELDS
This table shows the after-tax yields for a given taxable interest rate.
Would you be better off with a structured settlement?
Taxable Rate 15% taxable 18% taxable 28% taxable 31% taxable 33% taxable 35% taxable 38% taxable 40% taxable
1.0% 0.85 0.82 0.72 0.69 0.67 0.65 0.62 0.60
1.5% 1.28 1.23 1.08 1.04 1.00 0.98 0.93 0.90
3.0% 2.55 2.46 2.16 2.07 2.01 1.95 1.86 1.80
4.0% 3.40 3.28 2.88 2.76 2.68 2.60 2.48 2.40
5.0% 4.25 4.10 3.60 3.45 3.35 3.25 3.10 2.95
5.5% 4.68 4.51 3.96 3.80 3.69 3.58 3.41 3.25
6.0% 5.10 4.92 4.32 4.14 4.02 3.90 3.72 3.54
6.5% 5.52 5.33 4.68 4.48 4.36 4.23 4.03 3.84
7.0% 5.95 5.74 5.04 4.83 4.69 4.55 4.34 4.13
7.5% 6.38 6.15 5.40 5.18 5.02 4.88 4.65 4.43
8.0% 6.80 6.56 5.76 5.52 5.36 5.20 4.96 4.72
8.5% 7.23 6.97 6.12 5.86 5.69 5.53 5.27 5.02
9.0% 7.65 7.38 6.48 6.21 6.03 5.85 5.58 5.31
9.5% 8.07 7.79 6.84 6.56 6.36 6.18 5.89 5.61
10% 8.50 8.20 7.20 6.90 6.70 6.50 6.20 5.90
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