Whats the difference in benefits between tax free zero coupon bonds and taxable zero coupon bonds?

Is there any benefit to having one over the other? Does one get you more money?Whats the difference in benefits between tax free zero coupon bonds and taxable zero coupon bonds?
Which one is best for you depends on your income tax rate and which gives you the best after-tax return. If you're in a high tax bracket, the tax-free zero coupon bonds may give you a better after-tax return. If you're in a low tax bracket, the taxable bonds may give you the better after-tax return.Whats the difference in benefits between tax free zero coupon bonds and taxable zero coupon bonds?
With a taxable zero coupon bond, you pay tax each year, which is calculated using the rules for ';original issue discount';. With a tax free zero coupon bond, you do not pay tax (except for capital gains tax, if you sell it for more than your basis). Therefore, if everything else is the same, the tax free is better (for you, and worse for the IRS). However, the tax free usually pays you less money for the same investment, so it may be better or worse for you (after subtracting the taxes from what the taxable pays you).