[mzd348]

One problem with SPAXX (which I realized when doing my state taxes last week) is that the monthly dividends it pays aren't exempt from state income tax. I expected that they would be, since SPAXX invests in federal-level government bonds, but they aren't.

[pwarner]

You probably need to buy bonds issued by your state, although that may increase risk

[javanissen]

Treasuries are exempt from state taxes, at least when held directly