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.But, if you pay for a city and county bond out of another investor relating to the secondary market contrary to buying directly out of your issuer relating to the primary markets, at a good discount towards its encounter value, you are likely to owe financing gains taxes on the increase in principal you can expect to receive when bond is redeemed.The main town gains tax on a long-term attain is 15% (selling a security soon after holding it for as a minimum 1 year can be described as long-term gain), whereas all the tax on a short-term develop is 35% (selling soon after holding a security with regard to 1 year).The eye is constantly still expempt right from federal or maybe state tax, unless the bond comes with specific specifications that say otherwise

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