Interest on US savings bonds is taxable when the bond matures or when it is redeemed – whichever comes first.
If the holder of the instruments owns HH series bonds, the interest is paid every six months and income tax is due when paid.
Savings bonds may be exclude from Federal income tax when they are used to finance higher education, subject to ownership and income limitations.
It’s important to note that savings bonds are exempt from state and local income tax, but subject to estate and inheritance tax.