CUs Pay Same Taxes As Banks In Indiana
State-chartered credit unions in Indiana have paid some form of state income tax from the very beginning. Since 1989, state-chartered credit unions have paid a Financial Institutions Tax of 8.5% of net income after dividends and statutory reserves. This is the same tax rate paid by banks and savings associations.
Like many other states, Indiana is facing extreme budget problems and is looking for ways to raise revenue. So far, increasing the Financial Institutions Tax has not been mentioned as a source of revenue, but the league continues to monitor the legislature closely to ensure that the tax rate does not increase.