§ 26448 Bond Taxation Exemption

• •Money from bonds (like savings bonds) is usually not taxed in this state.
• •The only taxes you might pay on bonds are if you give them as a gift, inherit them, or leave them in a will.
• •This rule has been around since 1947.

You buy a savings bond and earn money from it over time.

You won’t pay regular taxes on the money you earn from the bond, but if you give it to someone as a gift when you pass away, they might have to pay taxes then.