596 companies avoided
in federal income tax on $1.7 trillion
of profit in 2025
Who is included?
A company is counted as avoiding tax if it is U.S.-based, reported a U.S. pretax profit, and paid an effective federal rate below the 21% statutory rate. Tax avoided is 21% of each company’s profit minus the federal income tax it paid.
Top Five
Technology: Internet Services and Retailing · California
Federal tax breaks include
Technology: Computer Software · Washington
Federal tax breaks include
Retailing: Internet Services and Retailing · Washington
Federal tax breaks include
Technology: Internet Services and Retailing · California
Federal tax breaks include
Financials: Commercial Banks · New York
Federal tax breaks include
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Companies are included here only if review of their 10-K filing for the 2025 fiscal year indicates that they avoided paying some amount of federal income taxes. Companies are counted as avoiding federal income tax if they are based in the US, reported a domestic pretax profit, and their federal ETR is less than the statutory 21%. Total tax avoided is the sum of the difference between the amount each company paid in federal income tax and 21% of their pretax profits. Individual tax reduction items are listed only for companies with a federal ETR below 15%.
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With earnings season now underway, dozens of huge corporations have disclosed paying single-digit federal income tax rates thanks to tax cuts included in President Trump’s “One Big Beautiful Bill.”
Amazon, Alphabet, Meta, and Tesla collectively avoided $51 billion in federal income tax for 2025. Tesla and Palantir reported paying zero federal income tax at all.
President Trump’s 2017 tax law and the recently passed OBBBA have led to substantial tax avoidance from the nation’s largest corporations. Corporate profits continue to soar while corporate tax avoidance reaches extreme levels. That’s why reforming the corporate income tax and closing loopholes is so critical to a fair tax code.
Six restaurant companies – Cheesecake Factory, Brinker (the parent company of Chili’s), Darden Restaurants (Olive Garden), Bloomin’ Brands (Outback Steakhouse), Cracker Barrel Old Country Store, and Texas Roadhouse – collectively disclosed $2.5 billion of U.S. profits last year on which they paid tax rates averaging 5.4 percent, far below the statutory 21 percent.
There were 114 corporations that paid no federal income tax in 2025. That includes well-known companies like Tesla, Walt Disney, CVS, Citigroup, United Airlines, Palantir, and DoorDash.
Alphabet, Microsoft, Amazon, Nvidia, Meta and J.P. Morgan Chase collectively raked in 42 percent of the total tax subsidies that 706 profitable U.S. corporations received in 2025.
In 2025, 706 profitable corporations paid an effective federal tax rate of just 10.4%, less than half the 21% statutory rate and the lowest ITEP has found in 40+ years of studies. 114 of them paid nothing at all.
In 2025, 706 major American corporations collectively paid a federal income tax rate of just 10.4% on $1.88 trillion in U.S. profits. This is the lowest effective rate that ITEP has uncovered in over 40 years of analyzing corporate income taxes.
Meta is claiming the research tax credit – a tax break meant to encourage innovation and experimentation – to pay for the equipment it uses in data centers to power its AI activities. ITEP described how Meta paid just 3.5% of its profits in federal corporate income taxes in 2025.
ITEP is a non-profit, non-partisan tax policy organization. We conduct rigorous analyses of tax and economic proposals and provide data-driven recommendations to shape equitable and sustainable tax systems.
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