You can invest in any state but yes tax-free for the state you live in.<p>Check <a href="http:&#x2F;&#x2F;www.cefconnect.com&#x2F;closed-end-funds-screener" rel="nofollow">http:&#x2F;&#x2F;www.cefconnect.com&#x2F;closed-end-funds-screener</a> and choose tax free.<p>I see a few in NJ over 5%: MUJ, MYJ, NXJ. NXJ is at a 10% discount. I&#x27;ve been basically doing those Nuveen &amp; Blackrock equivalents in CA.<p>I usually go for discount to net asset value so I feel like it has room to appreciate so I can lock in a gain outside of the monthly dividends. And if they go down you can always scoop up more which will then have a higher annual dividend yield.