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Bank Franchise Tax

The Bank Franchise Tax is paid by banks and other financial institutions with Vermont deposits. The tax is computed monthly on average monthly deposits for the previous 12 months. Tax is paid monthly, with a return filed quarterly. This tax is instead of corporate income tax.

Bank Franchise Tax is estimated and paid monthly, with a payment due on the 25th day of the following month. For example, for January the monthly payment is due February 25. If the due date falls on Saturday or Sunday, the next business day becomes the due date. For the first two months of each quarter, make estimated payments using myVTax. Select MAKE A PAYMENT located under the I WANT TO section.

To avoid an underpayment of your estimated tax, which may result in penalty and interest charges, your estimated monthly payments for each of the first two months of any quarter must either be:

  • equal to 100% of the tax due for the previous month’s tax, or
  • 90% of the month’s actual tax liability as computed at the end of the quarter.

The Bank Franchise Tax Return is filed quarterly, due the 25th day of the month following the end of the quarter. Compute tax due for each of the months in the quarter. Reconcile the amount due with amounts paid as estimates for the first two months in the quarter, and pay the third monthly payment with the Return.

How to File

Electronic Filing of Returns

The Bank Franchise Tax Return must be filed online through the Vermont Department of Taxes online system, myVTax. Register, file your return, and pay taxes due at myVTax. If you have any questions, contact us at (802) 828-2551 or tax.business@vermont.gov.

Affordable Housing Tax Credits or Downtown & Village Center Tax Credits

Every bank that has Affordable Housing Tax Credits or Downtown & Village Center Tax Credits

  • carried forward from a previous period, or
  • newly allocated to the bank during the period reported, or
  • expired/disposed of during the period, or
  • applied during the period reported,

must complete the Bank Franchise Affordable Housing Tax Credits and/or Downtown & Village Center Tax Credits Worksheets, as applicable, and attach the completed worksheets to the return together with supporting documentation. These worksheets provide the detail required to review Bank Franchise Tax credits.

Bank Franchise Tax Forms and Guidance

myVTax Instructions

Title Revised Number
Vermont Department of Taxes ACH Credit Payment Guide 2023 GB-1104

Worksheets

Title Instructions Revised
BFT-662 Bank Franchise Affordable Housing Tax Credits and/or Downtown & Village Center Tax Credits Worksheet (xlsx) Instructions 2015

Filing Due Dates

Bank Franchise Tax is estimated and paid monthly, with a payment due on the 25th day of the following month.

Monthly Filers

Tax Period Ending Due Date Submit
12/31/2023 1/25/2024 Return and Payment for the Quarter ending 12/31/2023 in myVTax
3/31/2024 2/23/2024 Estimated Payment for January 2024
3/31/2024 3/25/2024 Estimated Payment for February 2024
3/31/2024 4/25/2024 Return and Reconciled Payment for the quarter ending 3/31/2024 in myVTax
6/30/2024 5/28/2024 Estimated Payment for April 2024
6/30/2024 6/25/2024 Estimated Payment for May 2024
6/30/2024 7/25/2024 Return and Reconciled Payment for the quarter ending 6/30/2024 in myVTax
9/30/2024 8/26/2024 Estimated Payment for July 2024
9/30/2024 9/25/2024 Estimated Payment for August 2024
9/30/2024 10/25/2024 Return and Reconciled Payment for the quarter ending 9/30/2024 in myVTax
12/31/2024 11/25/2024 Estimated Payment for October 2024
12/31/2024 12/26/2024 Estimated Payment for November 2024
12/31/2024 1/27/2025 Return and Reconciled Payment for the quarter ending 12/31/2024 in myVTax

Statutes, Rules, and Regulations

Title Section
Taxation and fees Act No. 134 (H.873)