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Mutual Thrift Institutions Tax

The mutual thrifts institutions tax is imposed at the rate of 11.5 percent on savings institutions, savings banks, savings and loan associations and building and loan associations conducting business in Pennsylvania. Credit unions are not subject to tax.

The mutual thrift institutions tax applies to the net earnings or income received or accrued from all sources during the tax year. Income earned from U.S. obligations or Pennsylvania state and local obligations is excluded from the calculation of net earnings on income. Deduction of the portion of interest expense associated with tax-exempt income is not allowed. Apportionment of income to Pennsylvania is permitted through payroll, receipts and deposits factors. Mutual thrift institutions are permitted to carry forward net operating losses for up to three years.

Mutual thrift institutions make quarterly estimated payments, and the Mutual Thrift Institution Net Income Tax Report, RCT-143, is due 105 days after the close of the fiscal year.

For detailed and historic Pennsylvania mutual thrift institutions tax information, please review the Tax Compendium.

Taxpayers subject to mutual thrift institutions tax may also be subject to surplus lines tax and/or the gross premiums tax for premiums paid to unauthorized foreign insurance companies.