Eighty-Eight Major US Corporations Paid Zero Federal Income Tax in 2025

At least 88 of the most profitable US corporations avoided paying federal income taxes entirely in 2025, despite reporting a combined $105 billion in pretax income. A report from the Institute on Taxation and Economic Policy highlights how recent legislative shifts have effectively shielded these giants from standard federal tax obligations.

The analysis identifies a significant spike in corporate tax avoidance, driven largely by provisions within the 'One Big Beautiful Bill Act' signed by Donald Trump, alongside the lingering impact of the 2017 Tax Cuts and Jobs Act. More than half of the companies cited—including major names like Tesla, Citigroup, and Palantir—leveraged a specific provision allowing for the immediate write-off of capital investments. This mechanism alone reduced their collective tax burden by $11.4 billion.

Beyond capital investment write-offs, tech and pharmaceutical firms utilized research and development exemptions to shelter an additional $4.4 billion from taxation. The total $26.7 billion in revenue lost to these avoidance strategies represents a substantial sum, enough to fund a year of free lunches for every public school student in the country. Amy Hanauer, executive director of ITEP, characterized these figures as evidence of systemic deficiencies rather than isolated incidents, noting that without fundamental reform, profitable entities will continue to bypass their share of federal contributions.