VMRXX Tax Information
Vanguard Cash Reserves Federal Money Market Fund
US Gov. Obligation
Ordinary Dividends derived from Federal Obligations
Last verified 2/13/2026*
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About VMRXX State Tax Exemptions
For the 2025 tax year, Vanguard Cash Reserves Federal Money Market Fund (VMRXX) reported that 69.58% 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
VMRXX is a government money market fund that invests primarily in U.S. government securities, agency debt, and repurchase agreements collateralized by government securities.
Planning Point: While it is a 'Federal' fund, certain states (like CA, NY, CT) require a minimum threshold of government holdings (often 50%) to claim any state tax exemption.
*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.