In Virginia, a franchise tax is imposed on the net capital of banks and trust companies. See Form 64 for specific information about who must file the bank franchise tax.

How to file

Starting in 2025, banks must file Form 64 and schedules electronically on our website through a business account (iFile).

To file electronically, you need to first add the bank franchise tax type to your business's online account with us.

  • If you don't have an online business account, you'll need to enroll.
  • If you have an online business account 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.

Once you've logged into your online account, add the bank franchise tax type by clicking "Add a New Tax Type to Existing Account" under the Update Your Business Profile section.

You will file the tax return by uploading data in your online account through an Excel template. Online filing will be available in business accounts soon.

Once a bank files, the Commissioner of the Revenue in the locality where the bank is located will certify the return electronically.

When to file

Returns are due March 1. For banks that need more time to file, there is an automatic May 1 extension deadline (no application required).

How and when to pay

Banks still need to pay the tax by June 1. Banks should not wait until they get a bill to pay the tax due. Electronic payments for the state portion of the tax should be made through ACH credit/debit. Banks will continue to pay localities directly.

Assessment of tax

Tax rate and local credit

  • State tax - $1 per $100 of taxable value on Jan. 1 of each year except for new banks.

    • 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
  • 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.