At Least 88 Profitable U.S. Corporations Paid Zero Federal Income Tax in 2025

Institute on Taxation and Economic Policy ^ | April 14, 2026 | Matthew Gardner, Spandan Marasini

[Ahithophel]

At least 88 of the largest corporations in America paid no federal corporate income taxes in their most recent fiscal year despite enjoying substantial pretax profits in the U.S. While the biggest U.S. corporations have avoided taxes in this way for decades, it appears that corporate tax avoidance has increased in the most recent year. This is at least in part due to two separate packages of corporate tax cuts pushed through by the Trump administration: last year’s “One Big Beautiful Bill Act” and the 2017 Tax Cuts and Jobs Act (TCJA).

These tax-avoiding corporations represent a variety of industries and together enjoyed more than $105 billion in U.S. pretax income in 2025. The statutory federal income tax rate for corporate profits is 21 percent, which means these 88 corporations would have paid a collective total of $22.1 billion for the year had they paid that rate on their 2025 income. Instead, they received $4.7 billion in tax rebates. This means the total federal corporate income tax breaks enjoyed by these companies comes to $26.7 billion when measured against the 21 percent statutory rate. Measured against the 35 percent corporate income tax rate that was in effect before the two corporate tax cuts pushed through by Republicans and President Trump since 2017, these companies collectively cut their income taxes by $41 billion in 2025 alone.

These findings are based on ITEP’s analysis of the annual financial reports filed by the nation’s largest publicly traded U.S.-based corporations in their most recent fiscal year. All data presented here come directly from the income tax notes of these reports.

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TOPICS: Business/Economy
KEYWORDS: corporations; dnctalkingpoint; fino; matthewgardner; murica; paid; spandanmarasini; tax; zero

[Ahithophel]

"The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted."

Gregory v. Helvering, 293 U.S. 465, 469 (1935) (Sutherland, J.)

[BigFreakinToad]

Don’t hate the player, hate the game.

[E. Pluribus Unum]

Is it double taxation when corporation profits are taxed and then the shareholders' dividends are taxed?

https://x.com/i/grok/share/d2d224312a734b189bb88fcdbf2f3e34

Yes, it is commonly referred to as double taxation.Why it's called double taxation:

1. Corporate level: A C-corporation pays corporate income tax on its taxable profits (e.g., in the U.S., the federal rate is 21% as of 2026).
2. Shareholder level: When the company distributes after-tax profits as dividends, shareholders pay personal income tax on those dividends (at ordinary rates or preferential qualified dividend rates, depending on holding period and income level).

The same economic income is taxed twice — once at the company and once at the owner.Simple example:

• Company earns $100 profit.
• Pays 21% corporate tax → $21 tax, $79 left.
• Distributes $79 as dividend.
• Shareholder in 15% qualified dividend bracket pays ~$11.85 tax.
• Total tax: ~$32.85 on $100 profit (effective rate ~33%).

This is a classic criticism of the corporate tax system.Important nuances:

• Not all businesses face this: Pass-through entities (S-corps, LLCs, partnerships) generally avoid the corporate-level tax. Profits "pass through" directly to owners and are taxed only once on their personal returns.
• Mitigations exist:
  • Lower tax rates on qualified dividends and long-term capital gains.
  • Corporate deductions, credits, and strategies to reduce taxable income.
  • Retained earnings (if not distributed, shareholders avoid the second tax until sale or distribution).
• Economic perspective: Many economists argue this discourages corporate investment and equity financing relative to debt (interest is deductible).

International context:Most countries with corporate income taxes also tax dividends to some degree, though many use systems to reduce or eliminate the double tax (e.g., dividend imputation systems in Australia, or participation exemptions). The U.S. uses a "classical" system with partial relief via lower dividend tax rates.Bottom line: Yes, it's accurately described as double taxation of corporate profits. It's a deliberate feature of how C-corporations are taxed as separate entities, but it's a frequent point of debate in tax policy.

[rktman]

Playing by the rules. Weird huh?

[TalBlack]

How much did they pump into the economy in a multitude of ways by simply doing business?

[Carry_Okie]

It’s the shareholders who should be subject to income tax, or would be because of tax-exempt “charitable” foundations and NGOs.

[Wayne07]

Yes, this is working as designed. The Trump tax bill allows things like accelerated depreciation for capital investment. Invest in manufacturing and manufacturing equipment, and get the tax benefit immediately.

[adorno]

There is no such thing as corporate taxes.

Taxes paid by corporations are eventually paid by the customers of those corporations. Corporations pass the cost represented by taxes, to the consumer, thru higher prices that will help pay for the cost of taxes.

Taxes on corporations is a farce.

Only the economically naive would believe that corporations pay or should pay taxes.

[Bobbyvotes]

EXACTLY! Blame the politicians voters elected. Politicians made laws making easier to evade taxes.

[CapandBall]

Exactly right.
Corporations don’t pay taxes, they collect them.

[Bobbyvotes]

Brilliant point!!

[rlmorel]

The question is, did they break any laws.

If not, it is as American as Apple Pie.

[Armando Guerra]

This is spot on:

There is no such thing as corporate taxes. Taxes paid by corporations are eventually paid by the customers of those corporations. Corporations pass the cost represented by taxes, to the consumer, thru higher prices that will help pay for the cost of taxes. Taxes on corporations is a farce. Only the economically naive would believe that corporations pay or should pay taxes.

The left likes to tax corporations and then blame those same corporations for price increases. Same with the gas tax. The level of taxes taken out from the price of a gallon of gas is higher than the profit margins of the corporations selling it. Ultimately it is the consumer paying it, yet the economically naive are clamoring for corporations to "pay their fair share" with the left inciting them.

[Oldeconomybuyer]

Corporations do not pay taxes. They collect taxes.

[oldplayer]

Corporation didn’t pay INCOME taxes? So what? They shouldn’t have to.

Their employees did. They probably paid property taxes. They paid taxes on all the stuff they purchased. Shareholders pay taxes. etc.

[FreedomNotSafety]

Corporations do not pay taxes. They collect taxes. A company only has one place to get money from and every single dollar, including those “paid” as taxes, can only come from that same one source… customers.

All corporate taxes should be eliminated. They only serve to obscure how much taxes are being paid by customers. Imagine if every product or service you purchased was required to show how much of the price was taxes including indirect taxes from regulatory requirements?

Out government pressure gas retailers to not advertise how much taxes you pay at the pump.

[JSM_Liberty]

Accountants prepare two sets of books

One for the bank/investors to show how well the company is doing
One for the tax man to show how badly the company is doing

[Raycpa]

So this means they can sell their services and goods for a lower price and/or pay me more dividends.

[Theoria]

Homeowners do the same thing when they want to sell a house or for their local taxes.

[Fledermaus]

The tax is on net profits and not income.

Can’t tax profits that don’t exist.