SWTXX Tax Information
Schwab Tax-Free Bond Funds - Select Shares
US Gov. Obligation
Ordinary Dividends derived from Federal Obligations
Last verified 2/13/2026*
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About SWTXX State Tax Exemptions
For the 2025 tax year, Schwab Tax-Free Bond Funds - Select Shares (SWTXX) reported that 96.41% 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
SWTXX is a municipal money market fund. It invests in short-term municipal securities to provide income exempt from federal income tax.
Planning Point: While federally tax-exempt, it may be subject to the Alternative Minimum Tax (AMT) and is generally taxable at the state level unless the underlying bonds are from your home state. The high federal obligations percent is generally not a significant amount of this fund's income.
*Disclaimer: Sourced from Schwab 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.