Don’t Tax my Credit Union

Credit unions are under threat.

As Congress weighs potential tax reform, proposals have surfaced that could eliminate the long-standing federal tax exemption for credit unions. This exemption isn’t a special favor—it’s a reflection of what credit unions are: not-for-profit, member-owned cooperatives that reinvest earnings into better rates, lower fees, and community service. Removing it would undermine our mission and harm the 140 million Americans who rely on us.

Now more than ever, it’s critical to protect what makes credit unions different.

Why Credit Unions Are Tax-Exempt

Credit unions were created to serve people, not generate profits. Unlike banks that answer to shareholders, credit unions return earnings directly to their members through higher savings yields, lower loan rates, and reduced fees. We also invest deeply in financial education, local small businesses, and underserved areas—services that for-profit banks often overlook.

Our tax-exempt status allows us to operate with this community-first model. It enables us to support military families on bases, offer emergency loans during disasters, and help everyday Americans build credit, buy homes, and start businesses.

This isn’t just about helping members—it’s about helping entire communities thrive.

The Cost of Taxing Credit Unions

Eliminating the tax exemption would have serious consequences. A recent study by economists Dr. Robert Feinberg and Dr. Douglas Meade found that taxing credit unions would:

• Cut U.S. GDP by $266 billion over the next decade
• Eliminate 822,000 jobs
• Raise costs for both credit union and bank customers

That’s because credit unions provide healthy competition that keeps the financial sector in check. If credit unions are forced to pay taxes like banks, they’ll need to raise rates, increase fees, or cut services—impacting not just their members, but also the financial options available to everyone.

Military Families and Underserved Communities Would Be Hit Hardest

Credit unions are often the only financial institutions serving military bases and rural areas. Their commitment to these communities includes offering low-interest loans, providing free financial counseling, and helping members navigate unique challenges—like deployments or economic hardship.

Taxing credit unions could mean fewer services in these high-need areas and less access to affordable financial tools. For many families, that could be the difference between stability and struggle.

A Tax on Credit Unions Is a Tax on the People We Serve

Let’s be clear: we aren’t asking for a handout. We’re asking to keep doing what we’ve always done—serve our members, not maximize profits.

Stripping our tax-exempt status would ultimately function as a tax increase on working families, veterans, small business owners, and everyday savers. That’s not tax fairness, it’s bad policy.

Take Action to Protect Credit Unions

The credit union movement is sounding the alarm, and now is the time to raise your voice. The tax exemption is more than a line in the IRS code—it’s the foundation of a financial system that puts people before profits.

If Congress removes this exemption, the ripple effects will be felt far beyond the credit union lobby. They’ll be felt in your neighborhood, your workplace, and maybe even your own wallet.

We ask you to show your support for Members Trust and other credit unions. Share your story. Contact your lawmakers.

Because taxing credit unions means taxing Main Street—not Wall Street.

Join the fight and learn more at www.donttaxmycreditunion.org.