At least 88 of the largest corporations in the U.S. paid no federal corporate income taxes in 2025, despite collectively earning more than $105 billion in U.S. pretax income, according to a new analysis released today by the Institute on Taxation and Economic Policy.
The findings highlight a continuation of longstanding corporate tax avoidance trends, which have been exacerbated by the Trump administration’s 2017 and 2025 corporate tax cuts. And they fly in the face of public opinion, which overwhelmingly and consistently finds that Americans believe corporations pay too little and should pay more. For instance, in Gallup’s latest survey, 70 percent said corporations pay too little income tax and only 7 percent said they pay too much.
Had these corporations paid the statutory 21 percent rate, they would have contributed approximately $22.1 billion in federal income taxes. When factoring in both avoided taxes and rebates, the tax breaks total over $26.7 billion. Compared to the pre-2017 corporate tax rate of 35 percent, these companies reduced their tax liability by an estimated $41 billion in 2025 alone.
“What we’re seeing in this most recent year is corporate tax avoidance on steroids,” said Matt Gardner, ITEP Senior Fellow and author of the report. “It’s no secret that large, profitable American corporations have avoided paying full freight for decades, but that trend has been turbocharged by the Trump administration’s 2017 and 2025 corporate tax cuts.”
The companies identified span a wide range of industries, including manufacturing, transportation, entertainment, and technology. Among the notable examples:
- Tesla reported nearly $5.7 billion in U.S. income while paying no federal income tax.
- Southwest Airlines and United Airlines paid zero federal taxes on $561 million and $4.3 billion in income, respectively.
- Live Nation Entertainment avoided taxes on $98 million in income.
- Yum! Brands paid no federal income tax on more than $1 billion in profits.
- Digital payment firms PayPal, Toast, and Block collectively paid no federal taxes on $3.2 billion in income.
The report identifies several key tax provisions that enabled corporations to reduce or eliminate their tax liability, including accelerated depreciation, research and experimentation tax credits, new research expensing rules, foreign-derived income deductions, and tax breaks for stock options.
Because corporate tax returns are not publicly available, the full scope of tax avoidance remains unclear. However, the analysis draws on financial disclosures required by the Securities and Exchange Commission, including new reporting rules implemented in 2025 that provide greater insight into corporate tax strategies.
The 88 corporations identified in the report likely represent only a portion of the total number benefiting from these tax provisions. The report excludes privately held firms, companies outside the S&P 500 and Fortune 500, and corporations with non-calendar fiscal years that have yet to report 2025 results.
“These findings are not isolated cases – they reflect systemic deficiencies in the corporate tax code,” said Amy Hanauer, ITEP Executive Director. “Without meaningful reform, profitable corporations will continue to pay less than their fair share.”
