What is the 2025 US Government Obligation percentage for BND?

The 2025 US Government Obligation percentage for BND is 44.06%. This is the portion of Box 1a Dividend Income derived from federal obligations.

Is BND state tax exempt in California, New York, or Connecticut?

For 2025, BND does not meet the threshold for California, does not meet New York requirements, and does not meet Connecticut requirements.

BND Tax Information

Vanguard Total Bond Market ETF

Vanguard Funds • Tax Year 2025

US Gov. Obligation

44.06%^*

Ordinary Dividends derived from Federal Obligations

Last verified 2/13/2026^*

See Disclaimer

California Eligible

New York Eligible

Connecticut Eligible

About BND State Tax Exemptions

For the 2025 tax year, Vanguard Total Bond Market ETF (BND) reported that 44.06% of its Box 1a Dividend Income was derived from U.S. Government Obligations.

This percentage is critical for calculating state tax-exempt income. While federal obligations are generally free from state tax, specific states (California, New York, and Connecticut) have threshold requirements—typically requiring the fund to hold at least 50% of assets in federal obligations at quarter-end.

Fiduciary Commentary

BND provides broad exposure to the U.S. investment-grade bond market. It is very similar to AGG but managed by Vanguard.

Planning Point: A significant portion of BND's dividends comes from non-government sources, making the majority of the yield taxable at the state level.

*Disclaimer: Sourced from Vanguard 2025 tax supplements. This data may change in a correction and state taxing authorities may disagree. This data is for informational purposes. Always verify with original source documents and a qualified tax professional before filing.