Do credit unions pay taxes?

Yes. Credit unions pay millions in taxes annually, including sales, property and employer-related taxes.

Credit unions are taxed differently than banks because of their difference in structure. Credit unions are not-for-profit cooperatives owned by the people who use our products and services - our members. Earnings are returned to members in the form of better rates and lower fees. Banks are for-profit corporations where profits are paid to a small group of shareholders. Instead of a franchise tax that for-profit banks pay, Iowa's state-chartered credit unions pay a moneys and credits tax on legal reserves. Learn more about the credit union difference at veridiancu.org/difference.