In Virginia, a franchise tax is imposed on the net capital of banks and trust companies.
How to file
Starting in 2025, banks must file Form 64 and schedules electronically on our website through a business account (iFile). You will file the tax return by uploading data in your online account. We'll provide a template and share more information about the process later this year.
The bank franchise tax type will be available for businesses to add to their online account in December 2024.
- If you don't have an online business account with us, you'll need to enroll.
- If you have an online business account with us but haven't used your account in a while and it's expired, you'll need to enroll in an account again.
- Banks must be registered with us before creating an online account.
When to file
Returns are due March 1. Beginning in 2025, a May 1 extension will be available. More information about the process will be available later this year.
How to pay
Banks need to pay the tax by June 1. Electronic payments for the state portion of the tax should be made through ACH credit/debit. Banks should not wait until we issue a bill to pay the state portion of the tax due. Banks will continue to pay localities directly.
Assessment of tax
The Commissioner of the Revenue in the locality where the bank is located will certify the return electronically.
Tax rate and local credit
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State tax - $1 per $100 of taxable value on Jan. 1 of each year except for new banks.
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New banks - The bank franchise tax for new banks will be prorated as follows:
- First transacting business before March 31: $1 on each $100 of net capital, no proration
- First transacting business between April 1 and June 30: 75 cents on each $100 of net capital
- First transacting business between July 1 and Sept. 30: 50 cents on each $100 of net capital
- First transacting business between Oct. 31 and Dec. 31 31: 25 cents on each $100 of net capital
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- Local tax - Any city, county, or town may impose a tax not to exceed 80% of the state rate of taxation.
- Local credit - A credit is allowed for amounts paid to cities, towns, or counties for taxes assessed on a bank's net capital.
- The maximum total bank franchise tax liability per bank is $18 million.
Penalty and interest
Any bank that fails to file and pay the tax will be subject to a 5% penalty of the tax due. Interest is charged on any unpaid tax due from the payment due date until we receive the tax payment. Interest is calculated at the rate established by the current IRS underpayment rate plus 2%.
Contact us
For help with the bank franchise tax, please call 804.404.4215.