v3.25.4
Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Components of Income before Provision for Income Taxes
The components of income before provision for income taxes are as follows:
(dollars in millions)
Years Ended December 31,202520242023
Domestic$20,150 $21,253 $15,668 
Foreign2,522 1,726 1,319 
Total$22,672 $22,979 $16,987 
Components of Provision for Income Taxes
The components of the provision for income taxes are as follows:
(dollars in millions)
Years Ended December 31,202520242023
Current
Federal$1,735 $3,367 $2,070 
Foreign323 240 219 
State and local666 608 215 
Total2,724 4,215 2,504 
Deferred
Federal2,115 807 1,799 
Foreign19 (4)28 
State and local206 12 561 
Total2,340 815 2,388 
Total income tax provision$5,064 $5,030 $4,892 
Schedule for Principal Reasons for Difference in Effective and Statutory Tax Rates
The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate:
(dollars in millions)
202520242023
Years Ended December 31,AmountPercentAmountPercentAmountPercent
U.S. federal statutory tax rate$4,761 21.0 %$4,825 21.0 %$3,567 21.0 %
State and local income taxes, net of federal income tax effect(1)
739 3.3 566 2.5 664 3.9 
Foreign tax effects(131)(0.6)(68)(0.3)(16)(0.1)
Effect of cross-border tax laws41 0.2 — — 18 0.1 
Tax credits(25)(0.1)(27)(0.1)(27)(0.2)
Changes in valuation allowances(34)(0.2)15 0.1 — — 
Nontaxable or nondeductible items
Goodwill impairment— — — — 1,149 6.8 
Other(69)(0.3)(116)(0.5)(133)(0.8)
Changes in unrecognized tax benefits19 0.1 40 0.2 (27)(0.2)
Other adjustments
Federal refund claims— — (17)(0.1)(245)(1.4)
Other(237)(1.1)(188)(0.9)(58)(0.3)
Effective income tax rate$5,064 22.3 %$5,030 21.9 %$4,892 28.8 %
(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Illinois, Maryland, Pennsylvania and Virginia for 2025, California, Maryland and Pennsylvania for 2024, California, Georgia, Illinois, Maryland and Virginia for 2023.
Cash Flow Information
The amounts of cash taxes paid by Verizon are as follows:
(dollars in millions)
Years Ended December 31,202520242023
Federal$2,236 $4,745 $1,447 
State977 665 672 
Foreign
Ireland291 156 143 
All other foreign77 66 81 
Income taxes, net of amounts refunded3,581 5,632 2,343 
Employment taxes972 992 1,016 
Property and other taxes1,915 1,836 2,007 
Total$6,468 $8,460 $5,366 
Cash Flow Information
(dollars in millions)
Years Ended December 31,202520242023
Cash Paid
Interest, net of amounts capitalized$5,772 $5,505 $4,384 
Income taxes, net of amounts refunded3,581 5,632 2,343 
Other, net Cash Flows from Operating Activities
Changes in device payment plan agreement non-current receivables$(2,485)$(538)$(2,975)
Net debt extinguishment gains(368)(385)(308)
Other, net597 1,096 (427)
$(2,256)$173 $(3,710)
Other, net Cash Flows from Financing Activities
Net debt related costs(1)
$(97)$(259)$(73)
Other, net(1,852)(816)(1,397)
$(1,949)$(1,075)$(1,470)
(1) These costs include fees paid in connection with exchange and tender offers and settlements of associated instruments.
Schedule of Deferred Taxes
Deferred taxes arise because of differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities are as follows:
(dollars in millions)
At December 31,20252024
Deferred tax assets
Employee benefits$3,366 $3,676 
Tax loss, credit, and other carry forwards1,423 1,719 
Lease liabilities4,909 5,138 
Other - assets1,847 1,735 
11,545 12,268 
Valuation allowances(1,161)(1,399)
Deferred tax assets10,384 10,869 
Deferred tax liabilities
Spectrum and other intangible amortization30,568 29,302 
Depreciation21,136 20,424 
Lease right-of-use assets4,568 4,822 
Other - liabilities2,694 2,904 
Deferred tax liabilities58,966 57,452 
Net deferred tax liability$48,582 $46,583 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows:
(dollars in millions)
202520242023
Balance at January 1,$2,635 $2,705 $2,812 
Additions based on tax positions related to the current year92 91 114 
Additions for tax positions of prior years68 203 185 
Reductions for tax positions of prior years(87)(229)(154)
Settlements(5)(70)(50)
Lapses of statutes of limitations(56)(65)(202)
Balance at December 31,$2,647 $2,635 $2,705 
Schedule of After Tax (Expenses) Benefits Related to Interest and Penalties in Provision for Income Taxes
We recognized the following net after-tax expenses (benefit) related to interest and penalties in the provision for income taxes:

Years Ended December 31,(dollars in millions)
2025$72 
202455 
202386 
Schedule of After Tax Accrual for Payment of Interest and Penalties in Consolidated Balance Sheet
The after-tax accruals for the payment of interest and penalties in the consolidated balance sheets are as follows:

At December 31,(dollars in millions)
2025$751 
2024684