Tax-Savvy Investing: 10 Ways to Minimize Your Tax Burden

8. Leverage Municipal Bonds

Municipal bonds are issued by state and local governments and are generally exempt from federal taxes. In some cases, they may also be exempt from state and local taxes if you reside in the issuing jurisdiction.

These bonds offer a way to generate tax-free income. While their yields may be lower compared to taxable bonds, the tax savings can make them a more attractive option for investors in higher tax brackets.