Corporate Tax Avoidance
582 companies avoided $203,678,400,000 in federal income tax on $1.7 trillion of profit in 2025
582 companies avoided $203,678,400,000 in federal income tax on $1.7 trillion of profit in 2025
582 companies avoided
$203,678,400,000
in federal income tax on $1.7 trillion
of profit in 2025
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.
Top Federal Tax Avoiders
Alphabet
Reported federal tax rate: 7.86%
Federal Tax breaks include
- Depreciation Deduction$3.3 billion
- FDII Deduction$3.9 billion
- R&D Credit$2.1 billion
- Stock Options$2.6 billion
Microsoft
Reported federal tax rate: 2.44%
Federal Tax breaks include
- R&D Expensing$1.6 billion
- Depreciation Deduction$12 billion
- R&D Credit$1.5 billion
Amazon.com
Reported federal tax rate: 1.37%
Federal Tax breaks include
- R&D Expensing$4 billion
- Depreciation Deduction$6.5 billion
- R&D Credit$2.4 billion
- Stock Options$2.6 billion
Meta Platforms
Reported federal tax rate: 3.55%
Federal Tax breaks include
- R&D Expensing$12.6 billion
- Depreciation Deduction$4.9 billion
- R&D Credit$3.9 billion
- Stock Options$4.3 billion
J.P. Morgan Chase & Co.
Reported federal tax rate: 5.68%
Federal Tax breaks include
- Depreciation Deduction$2.7 billion
- Tax Credits$2.1 billion
Recent Filings
Marvell Technology
Reported federal tax rate: 8.05%
Federal Tax breaks include
- Depreciation Deduction$25.9 million
- R&D Credit$79.8 million
Markel Group
Reported federal tax rate: 12.77%
UMB Financial
Reported federal tax rate: 7.16%
Federal Tax breaks include
- Depreciation Deduction$13.6 million
Newmark Group
Reported federal tax rate: 8.26%
Federal Tax breaks include
- Depreciation Deduction$4 million
- Stock Options$6.5 million
SoFi Technologies
Reported federal tax rate: 0.98%
Federal Tax breaks include
- Stock Options$67 million
Ardent Health
Reported federal tax rate: 3.29%
Federal Tax breaks include
- Depreciation Deduction$11.9 million
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%.
Publications on Corporate Tax Avoidance (View All)
After Two Rounds of Trump Tax Cuts, Corporate America Paid Less Than Ever in 2025
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’s Outlandish Tax Breaks for AI Data Centers
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.
Big Tech Is Raking in Enormous Tax Breaks for AI Development
OBBBA’s expensing provision is becoming especially lucrative for the companies building out AI infrastructure right now. There is no evidence whatsoever that tax breaks are necessary to encourage their construction.
TurboTax Maker Intuit Paid Zero Federal Income Tax in 2025
TurboTax maker Intuit reported nearly $6 billion in U.S. profits in 2025 and paid no federal income tax. Instead, the company received a refund, thanks in part to new tax breaks from OBBBA.
The Biggest Winners from Trump’s Tariff Refunds are Big Corporations
The Trump administration has been forced to pay out over $100 billion from illegal tariffs, and the biggest winners from these tariff refunds have been big corporations.
The Trump Administration Slashed Taxes for H&R Block and Raised Costs for Tax Filers
Tax-prep giant H&R Block paid no federal taxes on its U.S. income in 2025. It also made a public disclosure, required by the European Union, characterizing one-third of its global profits as earned in Ireland, a low-tax country where the company offers no tax services and has only 15 employees.
Institute on Taxation
and Economic Policy
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.
Subscribe to ITEP Emails
Tax research and policy news in your inbox.
Promote Fair Tax Policy
Your gift to ITEP promotes tax justice. With your help, we do research that supports taxing millionaires and billionaires, taxing big corporations and raising revenue for the things our people, our communities and our planet need.
Together, we can create a country with more economic justice, more racial justice, more climate justice… and more tax justice.