114 Major US Companies Paid No Federal Income Tax in 2025

More than 100 major American corporations recorded substantial domestic profits without paying current federal income taxes in 2025, according to an October 22 report from the Institute on Taxation and Economic Policy (ITEP). The findings cover 706 publicly traded companies and highlight how corporate tax provisions reduced their obligations.

Among the companies reporting zero current federal income taxes were Tesla, Walt Disney, Citigroup, Coinbase, H&R Block, Kohl's, United Airlines and DoorDash. Tesla generated $5.7 billion in US profits without recording current federal income tax payments, according to ITEP.

The 706 companies collectively reported $1.88 trillion in US pretax profits but paid approximately $196 billion in current federal income taxes. Their combined effective tax rate was 10.4%, considerably below the statutory corporate rate of 21%.

ITEP identified 114 companies that paid no current federal income taxes. Their combined reported tax obligations were negative by almost $5.4 billion. Another 258 companies, including those 114, paid effective rates below 7%.

Those 258 corporations generated $684 billion in profits while paying $11.9 billion in current federal taxes, producing an effective rate of just 1.7%. T-Mobile recorded a rate of 0.4%, while Amazon, Microsoft, ExxonMobil, Coca-Cola, Meta, Uber and JPMorgan Chase also fell below 7%.

ITEP estimated that the companies received $198 billion in corporate tax subsidies during 2025. Alphabet accounted for $19 billion, Microsoft $18.7 billion, Amazon $17.4 billion and Meta Platforms $13.9 billion.

According to the organization, accelerated depreciation and research expensing alone generated $46 billion in tax savings for those four technology companies. The 2017 reduction in the statutory corporate tax rate from 35% to 21% also saved the 706 companies an estimated $263 billion in 2025.

The report identified accelerated depreciation, research deductions, stock options and research and development credits among the major sources of corporate tax reductions. It also linked changes to the One Big Beautiful Bill Act, signed in 2025, which restored broader business deductions.

ITEP described the historical significance of its findings in its report.

"This is the lowest effective rate that ITEP has uncovered in over 40 years of analyzing corporate income taxes," the report states.

The organization also characterized the existing framework as increasingly favorable to large businesses.

"a corporate tax system that is now more loophole than law" the report states.

It further questioned whether the statutory rate accurately reflects the tax obligations of profitable corporations.

"even a 21 percent tax rate remains an accounting fiction for most profitable corporations," the report states.

Matthew Gardner, a senior fellow at ITEP, attributed the outcome to longstanding policy decisions favoring large corporations.

"has been tilted in favor of the nation's wealthiest and most powerful companies," Gardner said.

Gardner also described the findings as the result of deliberate government policy.

"the predictable outcome of deliberate policy choices," Gardner said.

Steve Wamhoff, ITEP's federal policy director, similarly criticized congressional decisions to expand corporate tax benefits.

"Congress has repeatedly chosen to expand tax breaks for corporations that are already extraordinarily profitable," Wamhoff said.

Separate financial reporting also illustrates why zero current federal income taxes do not necessarily mean companies paid no taxes whatsoever. Airlines, for example, distinguish between current tax expenses, deferred tax obligations and actual cash payments.

United Airlines reported $4 million in federal income tax expenses on its 2025 financial statements but disclosed $33 million in federal tax payments. Its deferred tax position explains the difference between those figures, according to View From the Wing.

American Airlines reported $79 million in income tax expenses, entirely deferred, while United recorded $953 million, mostly deferred. Southwest Airlines reported $122 million in deferred income tax expenses.

Airline tax benefits partly reflect accumulated losses from previous years and accelerated depreciation on aircraft purchases. These provisions allow eligible businesses to recognize certain deductions earlier than the corresponding expenses appear in their financial statements.

Warren Buffett previously quoted Richard Branson in a 1996 investor letter discussing the financial difficulties of the airline industry.

"Start as a billionaire and then buy an airline," Buffett quoted Branson as saying.

Buffett also used another phrase when discussing the industry's long history of financial losses.

"farsighted capitalist," Buffett wrote.

ITEP cautioned that its calculations have limitations. Its analysis relies on annual corporate filings with the Securities and Exchange Commission, counts current federal income taxes rather than deferred taxes, and excludes companies with US pretax losses or insufficient financial disclosures.

Amazon illustrates one potential limitation. The company reported $1.22 billion in current federal taxes alongside $1.29 billion in uncertain tax benefits, leading ITEP to suggest its actual effective rate could be closer to zero.