FDLXX vs SPAXX: 98.67% vs 50.90% state tax exempt for 2025, and SPAXX missed the 50% test that California, Connecticut and New York apply
Both are Fidelity government money market funds with a $1.00 share price, no minimum and a 0.42% expense ratio. The difference that matters for tax: Fidelity reports that 98.67% of Fidelity Treasury Only Money Market Fund's (FDLXX) 2025 dividends came from U.S. government securities, against 50.90% for Fidelity Government Money Market Fund (SPAXX), and SPAXX did not meet the 50% test that California, Connecticut and New York require. At the 7-day yields Fidelity showed for October 23, 2026, FDLXX 3.58% and SPAXX 3.52%, FDLXX keeps more in all 50 states and D.C. for our example filer: $24.23 more a year on $50,000 where dividends are not taxed, and up to $188.51 more in California.
- What each holds. FDLXX: “Normally investing at least 99.5% of total assets in cash and U.S. Treasury securities”. SPAXX: “Normally investing at least 99.5% of total assets in cash, U.S. Government securities and/or repurchase agreements that are collateralized fully”.
- The 50% test. Fidelity's 2025 letter marks SPAXX: “This fund did not meet the minimum investment in U.S. government securities required to exempt the distribution from tax in California, Connecticut, and New York.” In those three states none of SPAXX's 2025 dividends is exempt.
- The yield SPAXX would need. To keep as much as FDLXX at 3.58%, SPAXX would need a 7-day yield of about 3.58% in a state without income tax, 4.05% in California and 3.86% in New York, for this filer. Every state is in the table.
- Convenience is the other side. SPAXX is one of the three choices Fidelity lists for a nonretirement account's core position; FDLXX is not, so you buy it separately.
FDLXX and SPAXX side by side
| FDLXX | SPAXX | |
|---|---|---|
| Fund | Fidelity Treasury Only Money Market Fund | Fidelity Government Money Market Fund |
| Sponsor | Fidelity | Fidelity |
| Type | Government money market fund (mutual fund), $1.00 share price | Government money market fund (mutual fund), $1.00 share price |
| What it holds | Fidelity: “Normally investing at least 99.5% of total assets in cash and U.S. Treasury securities”, and “Normally investing in securities whose interest is exempt from state and local income taxes” | Fidelity: “Normally investing at least 99.5% of total assets in cash, U.S. Government securities and/or repurchase agreements that are collateralized fully” |
| Current yield | 7-day yield 3.58% (Oct. 23, 2026) | 7-day yield 3.52% (Oct. 23, 2026) |
| Expense ratio | 0.42% (Fidelity's figure as of June 29, 2026) | 0.42% (Fidelity's figure as of June 29, 2026) |
| Minimum first purchase | None (Fidelity lists a $0 minimum) | None (Fidelity lists a $0 minimum) |
| How you buy and sell | Bought and sold at Fidelity at the $1.00 net asset value, on business days | Bought and sold at Fidelity at the $1.00 net asset value, on business days |
| Settlement or sweep fund? | No. It is not one of the three core position choices Fidelity lists for nonretirement accounts; you buy it separately | Yes. It is one of three choices for a Fidelity nonretirement account's core position |
| Fees on sales or gates | Not stated on the fund page we read | Not stated on the fund page we read |
| U.S. government share of 2025 dividends | 98.67% | 50.90% |
| Met the 50% test (CA, CT, NY), 2025 | Yes | No |
| What the sponsor says about 2025 | Fidelity's 2025 letter does not mark it among the funds that missed the 50% test | Fidelity marks it with the note “This fund did not meet the minimum investment in U.S. government securities required to exempt the distribution from tax in California, Connecticut, and New York.” |
FDLXX vs SPAXX after tax in all 50 states and D.C.
The yield left after federal and state income tax for a single filer aged 35 with $90,000 of wages and $50,000 in the fund for a year, at the yields above. “Keeps more” is the dollar difference over a year on $50,000. “Break-even” is the 7-day yield SPAXX would need to keep as much as FDLXX at 3.58% in that state, for this filer.
| State | FDLXX after tax | SPAXX after tax | Keeps more, a year | Break-even SPAXX yield | Why |
|---|---|---|---|---|---|
| Alabama | 2.88% | 2.75% | FDLXX, $67.32 | 3.69% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Alaska | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| Arizona | 2.84% | 2.75% | FDLXX, $45.60 | 3.63% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Arkansas | 2.84% | 2.73% | FDLXX, $55.86 | 3.66% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| California | 2.84% | 2.46% | FDLXX, $188.51 | 4.05% | 50% test: FDLXX met it; SPAXX did not. |
| Colorado | 2.84% | 2.72% | FDLXX, $61.85 | 3.68% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Connecticut | 2.84% | 2.55% | FDLXX, $146.38 | 3.91% | 50% test: FDLXX met it; SPAXX did not. |
| Delaware | 2.84% | 2.68% | FDLXX, $80.66 | 3.73% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| District of Columbia | 2.53% | 2.49% | FDLXX, $21.58 | 3.58% | No rule found for fund dividends: our calculator taxes both in full, so only the yields matter. |
| Florida | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| Georgia | 2.84% | 2.71% | FDLXX, $66.90 | 3.69% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Hawaii | 2.57% | 2.52% | FDLXX, $21.87 | 3.58% | No rule found for fund dividends: our calculator taxes both in full, so only the yields matter. |
| Idaho | 2.84% | 2.70% | FDLXX, $69.54 | 3.70% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Illinois | 2.84% | 2.71% | FDLXX, $66.56 | 3.69% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Indiana | 2.84% | 2.74% | FDLXX, $49.45 | 3.64% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Iowa | 2.84% | 2.73% | FDLXX, $56.72 | 3.66% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Kansas | 2.84% | 2.70% | FDLXX, $71.93 | 3.70% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Kentucky | 2.71% | 2.67% | FDLXX, $23.14 | 3.58% | No rule found for fund dividends: our calculator taxes both in full, so only the yields matter. |
| Louisiana | 2.84% | 2.74% | FDLXX, $49.88 | 3.65% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Maine | 2.84% | 2.67% | FDLXX, $85.36 | 3.74% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Maryland | 2.84% | 2.71% | FDLXX, $64.85 | 3.69% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Massachusetts | 2.84% | 2.71% | FDLXX, $66.97 | 3.69% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Michigan | 2.84% | 2.72% | FDLXX, $60.57 | 3.67% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Minnesota | 2.84% | 2.67% | FDLXX, $82.37 | 3.73% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Mississippi | 2.84% | 2.72% | FDLXX, $58.43 | 3.67% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Missouri | 2.85% | 2.72% | FDLXX, $64.46 | 3.68% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Montana | 2.84% | 2.69% | FDLXX, $72.54 | 3.71% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Nebraska | 2.84% | 2.71% | FDLXX, $63.13 | 3.68% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Nevada | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| New Hampshire | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| New Jersey | 2.84% | 2.68% | FDLXX, $78.69 | 3.72% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| New Mexico | 2.84% | 2.71% | FDLXX, $66.13 | 3.69% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| New York | 2.84% | 2.58% | FDLXX, $128.46 | 3.86% | 50% test: FDLXX met it; SPAXX did not. |
| North Carolina | 2.84% | 2.72% | FDLXX, $58.34 | 3.67% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| North Dakota | 2.84% | 2.76% | FDLXX, $40.90 | 3.62% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Ohio | 2.84% | 2.75% | FDLXX, $47.74 | 3.64% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Oklahoma | 2.84% | 2.71% | FDLXX, $62.71 | 3.68% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Oregon | 2.84% | 2.64% | FDLXX, $99.05 | 3.78% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Pennsylvania | 2.84% | 2.74% | FDLXX, $50.48 | 3.65% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. Pennsylvania uses its own percentage, which can differ. |
| Rhode Island | 2.84% | 2.73% | FDLXX, $56.29 | 3.66% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| South Carolina | 2.79% | 2.65% | FDLXX, $68.25 | 3.70% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| South Dakota | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| Tennessee | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| Texas | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| Utah | 2.84% | 2.69% | FDLXX, $73.39 | 3.71% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Vermont | 2.84% | 2.68% | FDLXX, $80.66 | 3.73% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Virginia | 2.84% | 2.69% | FDLXX, $73.39 | 3.71% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Washington | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
| West Virginia | 2.84% | 2.71% | FDLXX, $63.39 | 3.68% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Wisconsin | 2.84% | 2.69% | FDLXX, $74.98 | 3.71% | Exempts each fund's U.S. government share: FDLXX 98.67%, SPAXX 50.90%. |
| Wyoming | 2.84% | 2.79% | FDLXX, $24.23 | 3.58% | No state tax on dividends: only the yields matter. |
FDLXX keeps more in all 50 states and D.C. at these yields: $24.23 a year where only the yields matter, and most in California, Connecticut and New York ($188.51, $146.38 and $128.46).
What SPAXX costs in California, Connecticut and New York
Fidelity's 2025 letter: “California, Connecticut, and New York exempt dividend income only when a fund has met a certain minimum investment in U.S. government securities.” SPAXX missed it, so for a single filer aged 35 with $90,000 of wages and $50,000 in the fund for a year SPAXX's $1,790.73 of dividends adds $166.54 to California tax, while FDLXX's $1,821.79 adds $2.25. In Connecticut the figures are $123.49 and $1.33, in New York $105.65 and $1.43. In the 36 states that exempt each fund's share, FDLXX keeps $40.90 to $99.05 more a year. More on SPAXX, including its 2024 figure: Is SPAXX state tax exempt?
Quick answers
Is FDLXX better than SPAXX?
For what is left after tax, at the Oct. 23, 2026 yields FDLXX kept more in every state for our example, by $21.58 to $188.51 a year on $50,000. Where dividends are not taxed the whole gap is the yield (3.58% against 3.52%); in the states that tax part or all of SPAXX's dividends the gap is larger. SPAXX's advantage is that it can be the core position. Which suits your cash is your decision.
Is FDLXX state tax exempt? Is SPAXX?
FDLXX: 98.67% of its 2025 dividends came from U.S. government securities, exempt from state tax in 39 states including California, Connecticut and New York. Fidelity describes it as “Normally investing in securities whose interest is exempt from state and local income taxes”. SPAXX: 50.90%, exempt in 36 states but not in California, Connecticut or New York, where it missed the 50% test. Federal tax applies to both; IRS Publication 550: “Report amounts you receive from money market funds as dividend income.”
FDLXX vs SPAXX yield and expense ratio
Fidelity's 7-day yields for October 23, 2026: FDLXX 3.58% and SPAXX 3.52%. Both list a 0.42% gross and net expense ratio as of June 29, 2026, and no minimum.
Can FDLXX be my Fidelity core position?
Not for a nonretirement account: Fidelity's FAQ names SPAXX, the Fidelity Treasury Fund (FZFXX) and the Taxable Interest Bearing Cash Option (FCASH) as the choices. FZFXX is not FDLXX: it is Fidelity Treasury Money Market Fund, which reported 61.52% for 2025 and also missed the 50% test.
How do I claim the exemption on my state return?
Multiply the fund's ordinary dividends on your 1099-DIV by its percentage for the year (98.67% or 50.90% for 2025) and subtract the result where your state's return allows it, except in California, Connecticut and New York for SPAXX. Fidelity's 2025 letter lists the percentage for each of its funds. We will update this page when Fidelity publishes its 2026 figures.
How we built this page
- The yields, expense ratios, minimums and fund descriptions are the sponsors' own pages, read October 24, 2026. To keep the comparison fair, both yields are each fund company's latest figure.
- The 2025 shares and 50% test results are the sponsors' 2025 tax documents.
- Each state's rule comes from its own instructions, regulations or statutes, listed in our calculator's table of state rules. The after-tax figures come from the reference code that produces the calculator's published test cases.
- For twelve funds from five sponsors side by side, see state tax exempt money market funds; for Fidelity's core fund, Is SPAXX state tax exempt?; for SGOV in every state, Is SGOV state tax exempt?
Rechecks and changes
We will update the 2025 shares when the sponsors publish their 2026 documents, usually in January or February, and the yields every month.
- . First published.
Sources: Fidelity, 2025 Tax Year Supplemental Information on U.S. Government Securities Income (PDF); Fidelity, FDLXX fund page; Fidelity, SPAXX fund page; Fidelity, investing FAQs (core position); IRS, Publication 550 (2025); each state's source is in our calculator's table of state rules. Dollars Ahead is not affiliated with Fidelity or any state. This page reports what the funds and states publish. It is not tax or investment advice.