Clients can get a thorough view of their portfolios and evaluate investment returns after tax, including state federal and alternative minimum taxes, the Chicago-headquartered bank said yesterday. 

The performance calculator models the impact of US federal and state tax laws on portfolio returns. US tax obligations are complex and vary in each state; they are particularly difficult for municipal bonds.

The service takes into consideration the nature of the securities and investments activity of the portfolio. It also looks at state location and tax obligations of the investor.

"Given the increasing complexity of the US tax code, the ability to evaluate state tax obligations on investment portfolios remains important to individuals, asset owners and asset managers," said Louisa Taylor, director of family office services at Northern Trust. 

The firm has seen a substantial interest in assessing the impact of taxes upon investment returns in Australia, said Paul d’Ouville, global head of product management.

To view a recent article about different tax rates across the US and the impact on high net worth individuals, click here.