v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The table below presents information about the provision for taxes.
Year Ended December
$ in millions202520242023
Current taxes
U.S. federal$1,120 $2,000 $1,230
State and local571 659 389 
Non-U.S.2,781 2,262 1,964 
Total current tax expense4,472 4,921 3,583 
Deferred taxes
U.S. federal371 (869)(954)
State and local(83)(140)(356)
Non-U.S.(84)209 (50)
Total deferred tax (benefit)/expense
204 (800)(1,360)
Provision for taxes$4,676 $4,121 $2,223 
Schedule of Pre-Tax Earnings By Domestic and Foreign Based
The table below presents information about the firm's U.S. and non-U.S. pre-tax earnings based on the location of the legal entity in which the pre-tax earnings are generated.
Year Ended
$ in millions
December 2025
U.S.
$13,764 
Non-U.S.
8,088 
Total
$21,852 
Schedule of Effective Income Tax Rate Reconciliation
The table below presents a reconciliation of the 2025 U.S. federal statutory tax rate to the effective tax rate.
Year Ended
$ in millionsDecember 2025
U.S. federal statutory tax rate
$4,589 21.0%
State and local taxes, net of U.S. federal benefit176 0.8 
Foreign tax effects:
U.K.
Statutory rate difference348 1.6 
Other permanent items
(186)(0.8)
Other foreign jurisdictions
221 1.0 
Enactment of new tax laws
– – 
Effect of cross-border tax laws:
NCTI
356 1.6 
Non-U.S. branches
(278)(1.3)
Other(144)(0.7)
Tax credits
(131)(0.6)
Valuation allowances
(160)(0.7)
Non-taxable or non-deductible:
Settlement of employee share-based awards
(347)(1.6)
Non-taxable distributions
(363)(1.7)
Other
118 0.6 
Changes in unrecognized tax benefits480 2.2 
Other adjustments
(3)– 
Effective tax rate
$4,676 21.4%
In the table above:
•State and local taxes, net of U.S. federal benefit primarily includes taxes in New York State and City, and California.
•Statutory rate difference represents the statutory rate difference between the U.S. and the respective jurisdiction on pre-tax earnings/(losses) in that jurisdiction.
•The firm recognizes income tax expense associated with Net Controlled Foreign Corporation Tested Income (NCTI), formerly known as Global Intangible Low Taxed Income (GILTI) in the period in which it is incurred.
•Non-U.S. branches represents the U.S. tax offset to foreign tax effects for non-U.S. earnings that are included with their U.S. parent for U.S. tax purposes.
•Settlement of employee share-based awards includes the U.S. federal tax benefits on both delivery of common stock underlying employee share-based awards and dividend equivalents paid on RSUs.
•Changes in unrecognized tax benefits includes current and prior year changes in U.S. and non-U.S. unrecognized tax benefits and the related interest expense, net.






The table below presents a reconciliation of the U.S. federal statutory tax rate to the effective tax rate for both 2024 and 2023, and is based on applicable U.S. GAAP requirements prior to the adoption of ASU No. 2023-09.
Year Ended December
20242023
U.S. federal statutory tax rate
21.0%21.0%
State and local taxes, net of U.S. federal benefit2.4 0.6 
Settlement of employee share-based awards(1.2)(1.8)
Non-U.S. operations(1.4)(2.4)
GILTI
2.8 4.4 
Tax credits(0.8)(1.6)
Tax-exempt income, including dividends(0.6)(1.0)
Non-deductible legal expenses– 0.2 
Other0.2 1.3 
Effective tax rate
22.4%20.7%
Schedule of Deferred Tax Assets and Liabilities
The table below presents information about deferred tax assets and liabilities, excluding the impact of netting within tax jurisdictions.
As of December
$ in millions20252024
Deferred tax assets
Compensation and benefits$2,125 $1,888 
ASC 740 asset related to unrecognized tax benefits387 366 
Non-U.S. operations1,398 1,507 
Unrealized losses
2,984 2,786 
Net operating losses766 786 
Occupancy-related86 85 
Other comprehensive income/(loss)-related1,182 714 
Tax credits carryforward392 461 
Operating lease liabilities612 581 
Allowance for credit losses814 1,412 
Other, net640 421 
Subtotal11,386 11,007 
Valuation allowance(1,970)(2,064)
Total deferred tax assets$9,416 $8,943 
Deferred tax liabilities
Depreciation and amortization$1,081 $982 
Operating lease right-of-use assets538 512 
Total deferred tax liabilities$1,619 $1,494 
Schedule of Unrecognized Tax Benefits Roll Forward
The table below presents the changes in the liability for unrecognized tax benefits, which is included in other liabilities.
Year Ended or as of December
$ in millions202520242023
Beginning balance
$2,162 $1,726 $1,533 
Increases based on current year tax positions
353 381 143 
Increases based on prior years' tax positions217 87 164 
Decreases based on prior years' tax positions(113)(23)(92)
Decreases related to settlements
(28)(9)(20)
Exchange rate fluctuations
9 – (2)
Ending balance
$2,600 $2,162 $1,726 
Earliest Tax Years Subject to Examination by Major Jurisdiction
The table below presents the earliest tax years that remain subject to examination by major jurisdiction.
As of
JurisdictionDecember 2025
U.S. Federal2011
New York State and City2015
United Kingdom2017
Japan2019
Hong Kong2019
Schedule of Income Taxes Paid
The table below presents information about income taxes paid.
Year Ended
$ in millions
December 2025
U.S. federal $1,195 
State and local 349 
Non-U.S.:
France338 
U.K.960 
Other jurisdictions1,148 
Total
$3,990 
In the table above, jurisdictions that represent less than 5% of the total tax payments for the respective year have been included in other jurisdictions.