VBIAX Tax Information
Vanguard Balanced Index Fund Admiral Shares
US Gov. Obligation
Ordinary Dividends derived from Federal Obligations
Last verified 2/13/2026*
See Disclaimer
About VBIAX State Tax Exemptions
For the 2025 tax year, Vanguard Balanced Index Fund Admiral Shares (VBIAX) reported that 26.54% 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
VBIAX is a hybrid fund (roughly 60% stocks and 40% bonds). It is designed to provide a complete portfolio in a single fund.
Planning Point: Only the interest income from the 40% bond portion is eligible for federal obligation tax breaks; the equity dividends are generally taxed as qualified dividends if held long enough.
*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.