Tis' that time of year again. Tax season is upon us, and it has me looking over last year's choices. We have a moderate amount of cash sitting in a HYSA racking up 4.75%, while out mortgage is sitting at 3.0% which is where I had been thinking of shoving it. My last year self did the quick math of 4.75%>3.0%, a no-brainer. Today's self is remembering that the 4.75% interest I made last year gets dinged by 22% federal and 8.75% state taxes, or about 3.3% post-tax, while paying 3.0% post-tax on the mortgage balance. Still technically better, but 0.3% arbitraging gain is pretty sad. Taking a chunk off mortgage would have been worth the piece of mind for 0.3%.
End Rant.
