More about:

Financial Institution Excise

Learn if your business is subject to financial institution excise tax.

Companies subject to financial institution excise

Massachusetts financial institution excise applies to:

  • Banks
  • Trust companies
  • Federal or state savings and loan associations existing by authority of the United States, or any state or a foreign country.

It also applies to:

  • Bank holding companies 
  • Subsidiaries of bank holding companies
  • Savings and loan holding companies
  • Corporations subject to supervision by the Massachusetts Division of Banks
  • Other corporations
  • Certain other corporations that derive more than 50% of gross income from loan origination,lending activities and credit card activities.

Credit unions are not subject to the excise.

For more information see

Engaged in Business - Massachusetts Nexus

The financial institution excise applies to any financial institution engaged in business in Massachusetts.

The term "engaged in business," includes:

  • Having a business location in Massachusetts
  • Having employees, representatives or independent contractors conducting business activities on its behalf in Massachusetts
  • Maintaining, renting or owning any tangible or real property in Massachusetts
  • Regularly performing services in Massachusetts
  • Regularly engaging in transactions with customers in Massachusetts that involve intangible property and result in income flowing to the taxpayer from residents of Massachusetts
  • Regularly receiving interest income from loans secured by tangible personal property or real property located in Massachusetts or
  • Regularly soliciting and receiving deposits from customers in Massachusetts.

The activities described in the last 4 bullets above are presumed to be conducted on a regular basis in Massachusetts if:

  • They are conducted with 100 or more residents of Massachusetts during any taxable year 
  • The taxpayer has $10,000,000 or more of assets from sources in Massachusetts or
  • The taxpayer has more than $500,000 in receipts from sources in Massachusetts.

Estimated Payments

Estimated payment requirements and procedures are the same as other corporations.

See TIR 16-9 for more information on filing estimated payments.

Feedback

Tell us what you think