Nontaxable Interest

Nontaxable Interest means (see more about entries related to interest in the U.S. here)

interest on state and municipal debt obligations (municipal bonds), which is generally excludable from federal taxable income. Qualified scholarship funding bonds and qualified fire department bonds may also be treated as state or municipal debt obligations. Interest on certain private activity bonds that qualify for tax exemption is nontaxable.

See Tax exemption and Tax exemption.