§ 50748 Bond Tax Exemption Rules

• •Bonds and the money they earn are not taxed in this state.
• •The only taxes that apply to bonds are gift, inheritance, and estate taxes.
• •This rule has been in place since 1957.

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

You don’t have to pay taxes on the money you earn from the bond, except if it’s a gift, inheritance, or part of an estate.