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Learn more about after-tax returns

How after-tax returns are calculated

After-tax returns are calculated using the highest individual federal income tax rates in effect at the time of each distribution. They don't reflect the impact of state and local taxes.

You also should know that:

  • Your after-tax return depends on your individual tax situation and may differ from the figures presented here.
  • If you own a fund in a tax-deferred account, such as an IRA or employer-sponsored retirement plan, this information doesn't apply to your investment because these accounts aren't subject to current taxes.
  • After-tax returns for Vanguard funds take into account the different tax rates applicable to ordinary income, qualified dividend income, Section 199A dividends, and short-term and long-term capital gains.
  • After-tax returns for non-Vanguard funds are provided by Morningstar, Inc., based on data provided by the fund companies. Recent changes in tax law may cause after-tax returns to be calculated inconsistently across different fund families. Accordingly, after-tax returns for peer groups aren't provided.
  • Past performance, whether before or after taxes, doesn't guarantee future results.
  • If a fund incurs a loss that generates a tax benefit, the post-liquidation after-tax return may exceed the fund's other return figures.
  • After-tax returns are quarter-end-adjusted for fees and loads, if applicable.

After-tax returns for most funds are calculated using the tax liability implied by each of their respective declared distributions. However, the exact tax characteristics of many distributions aren't known until after the close of the calendar year.

For Vanguard Tax-Managed Balanced Fund, Vanguard REIT Index Fund, and Vanguard REIT ETF, conservative estimates are used based on fund history until final amounts become available.