v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of components of income tax provision
Details of the Company’s income tax provision are presented below:

In millions of dollars202520242023
Current   
Federal$(43)$(33)$41 
Non-U.S.5,140 5,945 5,807 
State and local(176)195 96 
Total current income taxes$4,921 $6,107 $5,944 
Deferred 
Federal$23 $(1,227)$(1,925)
Non-U.S.101 (816)(432)
State and local328 147 (59)
Total deferred income taxes$452 $(1,896)$(2,416)
Total
Federal$(20)$(1,260)$(1,884)
Non-U.S.5,241 5,129 5,375 
State and local152 342 37 
Provision for income tax on continuing operations before noncontrolling interests$5,373 $4,211 $3,528 
Provision (benefit) for income taxes on:
Discontinued operations$— $— $— 
Gains (losses) included in AOCI, but excluded from net income
328 1,035 557 
Employee stock plans(11)(5)(13)
Opening adjustment to Retained earnings(1)
— — 102 
Opening adjustment to AOCI(2)
— — 12 

(1)Related to the adoption of “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” See “Accounting Changes” in Note 1.
(2)Related to the adoption of “Financial Services—Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts.” See “Accounting Changes” in Note 1.
Schedule of effective income tax rate reconciliation
The reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate applicable to income from continuing operations (before noncontrolling interests and the cumulative effect of accounting changes) for each of the periods indicated is as follows:

202520242023
In millions of dollarsAmountPercentageAmountPercentageAmountPercentage
U.S. federal statutory income tax rate$4,164 21.0 %$3,580 21.0 %$2,711 21.0 %
Domestic federal reconciling items
Tax credits
Foreign tax credit$(349)(1.8)%$(194)(1.1)%$(163)(1.3)%
Other(279)(1.4)(322)(1.9)(336)(2.6)
Nontaxable and nondeductible items, net
FDIC premiums(1)
178 0.9 202 1.2 219 1.7 
Other(151)(0.8)(215)(1.3)(61)(0.5)
Cross-border taxes
GILTI212 1.1 275 1.6 238 1.8 
U.S. tax effect of foreign branches(1,135)(5.7)(367)(2.2)(777)(6.0)
Other19 0.1 42 0.2 (107)(0.8)
Effect of changes in tax laws or rates enacted in the current period— — — — (33)(0.3)
Changes in valuation allowance(2)
1,454 7.3 82 0.5 647 5.0 
Business exits(658)(3.3)— — — — 
Other(119)(0.6)(194)(1.1)(108)(0.8)
Domestic state and local income taxes, net of federal effect(3)
467 2.4 252 1.5 22 0.2 
Foreign reconciling items
Argentina
Non-deductible (non-taxable) FX translation184 0.9 115 0.7 770 6.0 
Deductible inflationary adjustment(162)(0.8)(546)(3.2)(462)(3.6)
Other75 0.4 162 1.0 (115)(0.9)
Brazil
Rate differential144 0.7 139 0.8 188 1.4 
Other(90)(0.5)(63)(0.4)54 0.4 
India
Rate differential243 1.2 265 1.6 624 4.8 
Reduced rate on capital gains— — — — (303)(2.3)
Other54 0.3 64 0.4 (39)(0.3)
Russia
Rate differential37 0.2 58 0.3 162 1.3 
Local or provincial tax(48)(0.2)(55)(0.3)(153)(1.2)
Other4 — (74)(0.4)18 0.1 
Mexico
Rate differential131 0.7 181 1.1 129 1.0 
Goodwill impairment218 1.1 — — — — 
Other177 0.9 2 — 58 0.5 
Netherlands
Business exits271 1.4 — — — — 
Other(46)(0.2)6 — 5 — 
Other716 3.5 759 4.4 359 2.8 
Worldwide changes in unrecognized tax benefits(338)(1.7)57 0.3 (19)(0.1)
Total tax$5,373 27.1 %$4,211 24.7 %$3,528 27.3 %

(1)Excludes the 2025, 2024 and 2023 FDIC special assessments, which are tax deductible.
(2)The valuation allowance is applied primarily to U.S. tax effect of foreign branches and business exits.
(3)For 2025, 2024 and 2023, New York City, California and New York State make up greater than 50% of the total effect of domestic state and local income
taxes, net of federal effect.
Schedule of deferred tax assets and liabilities
Deferred income taxes at December 31 related to the following:

In millions of dollars20252024
Deferred tax assets  
Credit loss deduction$5,755 $5,477 
Deferred compensation and employee benefits2,491 2,407 
Investment and loan basis differences4,156 4,463 
Tax credit and net operating loss carry-forwards14,022 15,878 
Fixed assets and leases5,191 4,878 
Other deferred tax assets8,195 5,993 
Gross deferred tax assets$39,810 $39,096 
Valuation allowance$4,984 $4,329 
Deferred tax assets after valuation allowance$34,826 $34,767 
Deferred tax liabilities
Intangibles and leases$2,278 $2,340 
Non-U.S. withholding taxes834 893 
Debt issuances293 308 
Other deferred tax liabilities1,890 1,381 
Gross deferred tax liabilities$5,295 $4,922 
Net deferred tax assets$29,531 $29,845 
Summary of unrecognized tax benefits
The following is a rollforward of the Company’s unrecognized tax benefits:

In millions of dollars202520242023
Total unrecognized tax benefits at January 1$1,309 $1,277 $1,311 
Increases for current year’s tax positions33 79 59 
Increases for prior years’ tax positions18 27 51 
Decreases for prior years’ tax positions(493)(50)(138)
Amounts of decreases relating to settlements(6)— (3)
Reductions due to lapse of statutes of limitation— (15)(4)
Foreign exchange, acquisitions and dispositions(1)(9)1 
Total unrecognized tax benefits at December 31$860 $1,309 $1,277 
Schedule of income tax penalties and interest accrued
Interest and penalties (not included in unrecognized tax benefits above) are a component of Provision for income taxes: 

 202520242023
In millions of dollarsPretaxNet of taxPretaxNet of taxPretaxNet of tax
Total accrued interest and penalties at January 1$309 $237 $271 $205 $234 $176 
Total interest and penalties expense (benefit)(38)(31)53 42 47 38 
Total accrued interest and penalties at December 31(1)
266 201 309 237 271 205 

(1)Includes $2 million, $1 million and $1 million for non-U.S. penalties in 2025, 2024 and 2023, respectively.
Schedule of major jurisdictions and earliest tax year subject to examination
The following are the major tax jurisdictions in which the Company and its affiliates operate and the earliest tax year subject to examination:

JurisdictionTax year
United States2016
New York State and City2009
Brazil2022
Hong Kong2024
India2018
Mexico2017
Singapore2024
United Kingdom2016
Schedule of deferred tax assets and liabilities by jurisdiction
The following table summarizes Citi’s DTAs:

In billions of dollars
Jurisdiction/component(1)
DTAs balance
December 31, 2025
DTAs balance
December 31, 2024
Federal(2)
  
Net operating losses (NOLs)(3)
$3.1 $3.4 
Foreign tax credits (FTCs)0.3 0.7 
General business credits (GBCs)6.2 5.8 
Future tax deductions and credits13.2 12.7 
Total federal$22.8 $22.6 
State and local
New York NOLs$1.1 $1.4 
Other state NOLs0.1 0.1 
Future tax deductions2.4 2.5 
Total state and local$3.6 $4.0 
Non-U.S.
NOLs$0.5 $0.8 
Future tax deductions2.6 2.4 
Total non-U.S.$3.1 $3.2 
Total$29.5 $29.8 

(1)All amounts are net of valuation allowances.
(2)Included in the net federal DTAs of $22.8 billion as of December 31, 2025 were deferred tax liabilities of $3.0 billion that will reverse in the relevant carry-forward period and may be used to support the DTAs.
(3)Consists of non-consolidated tax return NOL carry-forwards that are eventually expected to be utilized in Citigroup’s consolidated tax return.
Summary of tax carryforwards
The following table summarizes the amounts of tax carry-forwards and their expiration dates: 

In billions of dollars
Year of expirationDecember 31, 2025December 31, 2024
U.S. tax return general basket foreign tax credit carry-forwards(1)
  
2025$— $— 
20270.3 0.7 
Total U.S. tax return general basket foreign tax credit carry-forwards$0.3 $0.7 
U.S. tax return branch basket foreign tax credit carry-forwards(1)
 
2028$0.4 $0.7 
20290.2 0.2 
20331.3 1.4 
20340.4 1.0 
Total U.S. tax return branch basket foreign tax credit carry-forwards$2.3 $3.3 
U.S. tax return general business credit carry-forwards
2031$0.1 $— 
20320.4 0.4 
20330.3 0.3 
20340.2 0.2 
20350.2 0.2 
20360.2 0.2 
20370.5 0.5 
20380.5 0.5 
20390.7 0.7 
20400.7 0.7 
20410.8 0.8 
20420.7 0.7 
20430.3 0.3 
20440.3 0.3 
20450.3 — 
Total U.S. tax return general business credit carry-forwards$6.2 $5.8 
U.S. subsidiary separate federal NOL carry-forwards 
2027$— $0.1 
2028— 0.1 
2030— 0.3 
20331.6 1.6 
20341.6 1.9 
20352.8 3.3 
20362.1 2.1 
20371.0 1.0 
Unlimited carry-forward period5.8 5.8 
Total U.S. subsidiary separate federal NOL carry-forwards(2)
$14.9 $16.2 
New York State NOL carry-forwards(2)
 
2034$6.4 $8.1 
New York City NOL carry-forwards(2)
2034$5.7 $7.2 
Non-U.S. NOL carry-forwards(1)
 
Various$0.9 $1.1 

(1)Before valuation allowance.
(2)Pretax.
Schedule of cash flow supplemental information
Details of the Company’s income taxes paid are presented below:

In millions of dollars202520242023
Federal$(68)$(334)$47 
State and local 
Other271 54 220 
Total state and local$271 $54 $220 
Non-U.S.
BrazilNM$436 $467 
Hong KongNM375 NM
India$730 757 942 
Mexico1,172 534 679 
United KingdomNMNM575 
Other4,409 3,976 2,797 
Total non-U.S.$6,311 $6,078 $5,460 
Total$6,514 $5,798 $5,727 
NM Not meaningful, since the amount of income taxes paid during the year does not meet the 5% disaggregation threshold.
The table below provides the supplemental Statement of Cash Flows information:

In millions of dollars
December 31,
2025		December 31,
2024
Cash paid for amounts included in the measurement of lease liabilities$719 $729 
ROU assets obtained in exchange for new operating lease liabilities(1)
713 777 

(1)     Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statement of Cash Flows.