v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Before Income Tax Expense
Table 22.1 presents the components of income before income tax expense.
Table 22.1: Income Before Income Tax Expense
Year ended December 31, 
(in millions)202520242023
U.S.$23,644 22,097 20,721 
Non-U.S.1,555 1,267 915 
Total$25,199 23,364 21,636 
Income Tax Expense (Benefit)
Table 22.2 presents the components of income tax expense (benefit).
Table 22.2: Income Tax Expense (Benefit)
Year ended December 31, 
(in millions)202520242023
Current:
U.S. federal (1)$5,060 3,697 2,883 
U.S. state and local231 268 (453)
Non-U.S.420 345 227 
Total current5,711 4,310 2,657 
Deferred:
U.S. federal (1,670)(737)(662)
U.S. state and local (157)(131)586 
Non-U.S.(43)(43)26 
Total deferred(1,870)(911)(50)
Total$3,841 3,399 2,607 
(1)The amount for the year ended December 31, 2023 does not reflect accounting changes related to our modified retrospective adoption of ASU 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, effective January 1, 2024. See Note 15 (Securitizations and Variable Interest Entities) for information about tax credit investments.
Effective Income Tax Expense (Benefit) and Rate
Table 22.3 reconciles the statutory federal income tax rate to the effective income tax rate.
Table 22.3: Effective Income Tax Expense (Benefit) and Rate
December 31,
202520242023
(in millions)Amount Rate Amount Rate Amount Rate 
Statutory federal income tax expense and rate$5,292 21.0 %$4,855 21.0 %$4,567 21.0 %
Change in tax rate resulting from:
State and local taxes on income, net of federal income tax benefit (1)563 2.2 532 2.3 819 3.8 
Tax credits, net of investment amortization:
Renewable energy (2)(588)(2.3)(450)(2.0)(1,014)(4.7)
Affordable housing(347)(1.4)(273)(1.2)(278)(1.3)
Other(154)(0.6)(190)(0.8)(260)(1.2)
Nontaxable and nondeductible items:
Tax-exempt interest(267)(1.1)(326)(1.4)(345)(1.6)
Other(25)(0.1)119 0.5 140 0.7 
Changes in prior year unrecognized tax benefits, inclusive of interest(751)(3.0)(819)(3.5)(1,042)(4.8)
Other118 0.5 (49)(0.2)20 0.1 
Effective income tax expense and rate$3,841 15.2 %$3,399 14.7 %$2,607 12.0 %
(1)State and local income taxes in California, New York and New York City contributed to the majority of this category.
(2)The amounts for the year ended December 31, 2023 do not reflect accounting changes related to our modified retrospective adoption of ASU 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, effective January 1, 2024. See Note 15 (Securitizations and Variable Interest Entities) for information about tax credit investments.
Net Deferred Taxes
The tax effects of our temporary differences that gave rise to significant portions of our deferred tax assets and liabilities are presented in Table 22.4.
Table 22.4: Net Deferred Taxes
(in millions)Dec 31,
2025		Dec 31,
2024
Deferred tax assets
Net operating loss and tax credit carryforwards$6,601 4,721 
Allowance for credit losses3,488 3,580 
Deferred compensation and employee benefits
3,328 3,194 
Net unrealized losses on debt securities1,418 2,881 
Capitalized research expenses1,272 1,653 
Lease liabilities1,030 1,104 
Accrued expenses903 1,187 
Basis difference in investments723 720 
Other830 1,070 
Total deferred tax assets19,593 20,110 
Deferred tax assets valuation allowance(314)(162)
Deferred tax liabilities
Mark to market, net(10,383)(12,235)
Leasing and fixed assets(3,951)(2,818)
Mortgage servicing rights(1,135)(1,264)
Intangible assets(1,005)(899)
Right-of-use assets(870)(930)
Other(785)(683)
Total deferred tax liabilities(18,129)(18,829)
Net deferred tax asset (1)$1,150 1,119 
(1)The net deferred tax asset is included in other assets.
Deferred Tax Assets Related to Net Operating Loss and Tax Credit Carryforwards
Table 22.5 presents the components of the deferred tax assets related to net operating loss (NOL) and tax credit carryforwards at December 31, 2025. If not utilized, carryforwards mostly expire in varying amounts through December 31, 2045, with the exception of U.S. federal corporate alternative minimum tax credits that do not expire.
Table 22.5: Deferred Tax Assets Related to Net Operating Loss and Tax Credit Carryforwards
(in millions)Dec 31, 2025
U.S. federal tax credits$6,326 
U.S. state NOLs and credits218 
Non-U.S. NOLs and credits57 
Total net operating loss and tax credit carryforwards$6,601 
Change in Unrecognized Tax Benefits
Table 22.6 presents the change in unrecognized tax benefits.

Table 22.6: Change in Unrecognized Tax Benefits
Year ended December 31, 
(in millions)202520242023
Balance, beginning of period$3,105 4,114 5,437 
Additions:
For tax positions related to the current year184 292 246 
For tax positions related to prior years10 140 352 
Reductions:
For tax positions related to prior years(742)(1,354)(765)
Lapse of statute of limitations(27)(44)(389)
Settlements with tax authorities(2)(43)(767)
Balance, end of period$2,528 3,105 4,114 
Tax Examination Status
Table 22.7 summarizes our major tax jurisdiction examination status as of December 31, 2025.

Table 22.7: Tax Examination Status
JurisdictionTax Year(s)Status
United States2015-2018Administrative appeals
United States2019-2022Field examination
California2017-2020Administrative appeals
California2021-2023Field examination
New York2017-2021Field examination
New York City2017-2021Field examination
Net Cash Paid (Refunded) for Income Taxes Table 22.8 presents our income taxes paid, net of refunds, by tax jurisdiction.
Table 22.8: Net Cash Paid (Refunded) for Income Taxes
December 31,
(in millions)202520242023
U.S. federal:
Cash paid$560 2,000 207 
Refunds received— (1,986)(1,307)
Net cash paid (refunded)560 14 (1,100)
U.S. state and local:
California*443 (596)
New Jersey*95 160 
New York84 143 (166)
New York City92 257 (120)
Other236 311 (157)
Non-U.S.:
India147 107  *
United Kingdom183 148  *
Other117 146 193 
Net cash paid (refunded)$1,419 1,664 (1,786)
*    The amount is less than 5% of net cash paid (refunded) for income taxes during the year.