§ 26348 Bond Taxation Exemption

• •Bonds and the money they earn are usually not taxed in this state.
• •The only taxes that might apply are gift, inheritance, and estate taxes.
• •This rule has been in place since 1947.

You buy a bond from the government and earn money from it.

You won’t have to pay regular taxes on the money you earn from the bond, but if you give it as a gift or leave it to someone when you pass away, those taxes might apply.