VMFXX Tax Information
Vanguard Federal Money Market Fund
US Gov. Obligation
Ordinary Dividends derived from Federal Obligations
Last verified 2/13/2026*
See Disclaimer
About VMFXX State Tax Exemptions
For the 2025 tax year, Vanguard Federal Money Market Fund (VMFXX) reported that 66.61% 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
VMFXX is the default settlement fund for Vanguard brokerage accounts. It invests in U.S. government securities and agency debt.
Planning Point: Watch the 50% threshold carefully. In some years, VMFXX dips below 50% government obligations, disqualifying it from state tax exemptions in NY, CA, and CT.
*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.