Title 12, Banks and BankingRelease 119-102
§1768 Taxation
Title 12 › CHAPTER 14 — FEDERAL CREDIT UNIONS › SUBCHAPTER I — GENERAL PROVISIONS › § 1768
Summary
Federal credit unions and most of their assets and income are exempt from federal, state, territorial, and local taxes. Land and other physical property they own can be taxed the same as similar property. A member’s shares can be counted when a state values personal property for taxes, but the credit union must not collect those taxes and the tax rate can’t be higher than for domestic credit-union holdings.
Full Legal Text
Title 12, §1768
Banks and Banking, Source: USLM XML via OLRC
The Federal credit unions organized hereunder, their property, their franchises, capital, reserves, surpluses, and other funds, and their income shall be exempt from all taxation now or hereafter imposed by the United States or by any State, Territorial, or local taxing authority; except that any real property and any tangible personal property of such Federal credit unions shall be subject to Federal, State, Territorial, and local taxation to the same extent as other similar property is taxed. Nothing herein contained shall prevent holdings in any Federal credit union organized hereunder from being included in the valuation of the personal property of the owners or holders thereof in assessing taxes imposed by authority of the State or political subdivision thereof in which the Federal credit union is located; but the duty or burden of collecting or enforcing the payment of such a tax shall not be imposed upon any such Federal credit union and the tax shall not exceed the rate of taxes imposed upon holdings in domestic credit unions.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1959—Pub. L. 86–354 substituted “but” for “Provided, however, That” and inserted “a” before “tax”. 1937—Act Dec. 6, 1937, inserted tax exemption provision, the real and tangible personal property proviso, provided that responsibility of tax collection would not be imposed upon Federal credit unions, and that tax rate would not exceed that of domestic credit unions.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1768
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102