Do credit unions pay taxes?

Yes. Since the early 1900s, Congress and state legislatures have taxed credit unions differently than banks because of their different ownership structures. For-profit banks are in business to make a profit for the stockholders who own them. Not-for-profit credit unions are cooperatives, with all members being equal owners and having one vote in the democratic election of the board of directors.  As cooperatives, credit unions pass their earnings on to members in the form of better rates, lower fees and more. Learn more about the credit union difference at veridiancu.org/difference.

Credit Unions Do Pay Taxes.
Credit unions pay millions in taxes annually, including sales, property and employer-related taxes. Instead of a franchise tax that for-profit banks pay, Iowa's state-chartered, not-for-profit credit unions pay a moneys and credits tax on legal reserves.