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About Credit Unions

Do credit unions pay taxes?

While credit unions are exempt from state and federal corporate income tax, they do pay other state and local taxes, just like any business. For example, all credit unions that own property in Arizona pay the real estate taxes that fund our local school systems. Arizona's state-chartered credit unions pay state and local sales taxes. Credit union employees pay the same taxes as any other employees. FICA, disability, and unemployment taxes are all deducted from their paychecks. Credit union depositors pay taxes on interest just like bank depositors.

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