v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Tax The table below presents income before income tax expense disaggregated by U.S. and Non-U.S. jurisdictions for 2025, 2024 and 2023.
Income Before Income Tax Expense
December 31
(Dollars in millions)202520242023
U.S.$28,813 $24,251 $23,978 
Non-U.S. (1)
8,882 8,972 8,552 
Income before income tax expense$37,695 $33,223 $32,530 
(1) Income is related to the tax jurisdiction of the legal entity’s principal place of business.
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense for 2025, 2024 and 2023 are presented in the table below.
Income Tax Expense
(Dollars in millions)202520242023
Current income tax expense   
U.S. federal$4,202 $4,709 $4,760 
U.S. state and local442 603 559 
Non-U.S. 2,247 2,065 1,918 
Total current expense6,891 7,377 7,237 
Deferred income tax expense (benefit)
 
U.S. federal(114)(1,679)(1,233)
U.S. state and local239 153 (62)
Non-U.S. 170 399 283 
Total deferred expense (benefit)
295 (1,127)(1,012)
Total income tax expense$7,186 $6,250 $6,225 
Schedule of Effective Income Tax Rate Reconciliation A reconciliation of the expected U.S. federal income tax expense, calculated by applying the federal statutory tax rate, to the Corporation’s actual income tax expense, and the effective tax rates for 2025, 2024 and 2023 are presented in the following table.
Reconciliation of Income Tax Expense
 AmountPercentAmountPercentAmountPercent
(Dollars in millions)202520242023
Expected U.S. federal income tax expense$7,916 21.0 %$6,976 21.0 %$6,831 21.0 %
Increase (decrease) in taxes resulting from:
State and local income tax, net of federal income tax deduction726 2.0 690 2.1 331 1.0 
Tax credits
PTCs and LIHTCs accounted for under PAM(633)(1.7)(587)(1.8)(600)(1.8)
ITCs and other PTCs(705)(1.9)(924)(2.8)(568)(1.7)
Other(216)(0.6)(307)(0.9)(227)(0.7)
Nontaxable or nondeductible items
Tax-exempt income, including dividends(405)(1.1)(477)(1.4)(411)(1.3)
Nondeductible expenses419 1.1 426 1.2 405 1.2 
Other(215)(0.6)(15)— (24)(0.1)
Changes in unrecognized tax benefits(187)(0.5)(99)(0.3)(26)(0.1)
Foreign tax effects550 1.5 586 1.7 381 1.2 
Effect of cross-border tax laws(205)(0.5)(175)(0.5)(83)(0.3)
Changes in valuation allowances149 0.4 224 0.7 303 0.9 
Other(8)— (68)(0.2)(87)(0.2)
Total income tax expense (benefit)$7,186 19.1 %$6,250 18.8 %$6,225 19.1 %
Reconciliation of Change in Unrecognized Tax Benefits
The reconciliation of the beginning unrecognized tax benefits (UTB) balance to the ending balance is presented in the table below.
Reconciliation of the Change in Unrecognized Tax Benefits
(Dollars in millions)202520242023
Balance, January 1$684 $811 $1,056 
Increases related to positions taken during the current year
54 55 76 
Increases related to positions taken during prior years (1)
24 39 139 
Decreases related to positions taken during prior years (1)
(214)(134)(32)
Settlements(46)(62)(380)
Expiration of statute of limitations(19)(25)(48)
Balance, December 31$483 $684 $811 
(1)    The sum of the positions taken during prior years differs from the $(187) million, $(99) million and $(26) million in the Reconciliation of Income Tax Expense table due to temporary items, state items and jurisdictional offsets, as well as the inclusion of interest in the Reconciliation of Income Tax Expense table.
Summary of Income Tax Examinations The table below summarizes the status of examinations by major jurisdiction for the Corporation and various subsidiaries at December 31, 2025.
Tax Examination Status
Years under
Examination (1)
Status at
December 31, 2025
United States2017-2023Field Examination
California2018-2021Field Examination
New York2022-2024Field Examination
New York City2022-2024To begin in 2026
United Kingdom (2)
2021-2023Field Examination
(1)    All tax years subsequent to the years shown remain subject to examination.
(2) Field examination for tax year 2024 to begin in 2026.
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Corporation’s net deferred tax assets and liabilities at December 31, 2025 and 2024 are presented in the following table.
Deferred Tax Assets and Liabilities
 December 31
(Dollars in millions)20252024
Deferred tax assets  
Tax attribute carryforwards $12,875 11,898 
Allowance for credit losses3,415 3,463 
Lease liability2,025 2,169 
Employee compensation and retirement benefits1,807 1,760 
Accrued expenses1,030 1,379 
Security, loan and debt valuations559 2,680 
Other2,469 2,339 
Gross deferred tax assets24,180 25,688 
Valuation allowance(2,310)(2,361)
Total deferred tax assets, net of valuation
   allowance		21,870 23,327 
 
Deferred tax liabilities
Equipment lease financing3,246 3,021 
Right-of-use asset1,873 2,025 
Other1,747 1,920 
Gross deferred tax liabilities6,866 6,966 
Net deferred tax assets$15,004 16,361 
Schedule of Operating Loss Carryforwards
The table below summarizes the deferred tax assets and related valuation allowances recognized for the net operating loss (NOL) and tax credit carryforwards at December 31, 2025.
Net Operating Loss and Tax Credit Carryforward Deferred Tax Assets
(Dollars in millions)Deferred
Tax Asset		Valuation
Allowance		Net
Deferred
Tax Asset		First Year
Expiring
Net operating losses - U.K. (1)
$7,447 $— $7,447 None
Net operating losses - other non-U.S. 
67 (25)42 Various
Net operating losses - U.S. states (2)
389 (242)147 Various
General business credits3,920 — 3,920 After 2045
Foreign tax credits1,052 (1,052)— After 2028
(1)Represents U.K. broker-dealer net operating losses that may be carried forward indefinitely.
(2)The net operating losses and related valuation allowances for U.S. states before considering the benefit of federal deductions were $492 million and $307 million.
Summary of Tax Credit Carryforwards
The table below summarizes the deferred tax assets and related valuation allowances recognized for the net operating loss (NOL) and tax credit carryforwards at December 31, 2025.
Net Operating Loss and Tax Credit Carryforward Deferred Tax Assets
(Dollars in millions)Deferred
Tax Asset		Valuation
Allowance		Net
Deferred
Tax Asset		First Year
Expiring
Net operating losses - U.K. (1)
$7,447 $— $7,447 None
Net operating losses - other non-U.S. 
67 (25)42 Various
Net operating losses - U.S. states (2)
389 (242)147 Various
General business credits3,920 — 3,920 After 2045
Foreign tax credits1,052 (1,052)— After 2028
(1)Represents U.K. broker-dealer net operating losses that may be carried forward indefinitely.
(2)The net operating losses and related valuation allowances for U.S. states before considering the benefit of federal deductions were $492 million and $307 million.
Schedule of Income Taxes Paid, Net
The following table summarizes cash taxes paid, net of refunds received, for jurisdictions that represented five percent or more of total income taxes paid, net of refunds received.
Income Taxes Paid
(Dollars in millions)202520242023
Taxes paid by jurisdiction
U.S. federal
$1,050 $1,143 $775 
U.S. state and local
California (1)
not requirednot required230 
Other651 569 525 
   Total U.S. state and local
651 569 755 
Non-U.S.
United Kingdom433 578 519 
India272 292 266 
Other1,524 1,240 1,090 
   Total Non-U.S.
2,229 2,110 1,875 
   Total income taxes paid
$3,930 $3,822 $3,405 
(1)Amounts are not required as the total for the periods presented is less than five percent of the total income taxes paid.