The objective of this study is to characterize the passive behavior of electroplated permalloy films (EP) and bulk permalloy samples. The motivation for this work is the optimization of the magnetic properties of these films consistent with the required etching steps used in the fabrication of read/write thin film magnetic heads and the corrosion behavior of these heads in service conditions. The different samples of permalloy were evaluated with electrochemical potentiodynamic anodic polarization (PAP) at different scan rates in electrolytes with various pH and chloride content. The most significant difference in the passive behavior of the two types of samples was the predominantly active behavior of the EP samples, in contrast to a classic passive behavior of the bulk samples. The structure of EP permalloy was evaluated with EPM, XRD, and TEM in order to explain the difference in passive behavior. The most significant difference was the columnar grain structure with 20 to 30 nm in diameter by 100 nm in length and a (200) texture for the EP films.