2025 is projected to be a lucrative tax year for Big Tech due to AI data center expansions and business-friendly provisions in Trump’s tax bill. Amazon, Meta Platforms, and Alphabet have all reported significant drops in US federal income taxes for the year. Profits for these companies are also on the rise, with Amazon seeing a 40% increase in domestic profits.
The tax bills for these tech giants have decreased significantly for 2025, with Amazon’s bill dropping from $9 billion in 2024 to $1.2 billion this year. Meta Platforms reported a drop from $9.6 billion to $2.8 billion, while Alphabet saw a decrease from $21.1 billion to $13.8 billion.
The tax deductions enacted last year have played a key role in the reduced tax bills for 2025. Amazon, Meta, and Alphabet have reported billions in deferred taxes this year. Amazon’s deferred taxes exceeded $11 billion, Meta’s topped $18 billion, and Alphabet reported about $8 billion in deferred taxes.
Critics have already voiced concerns over the tax practices of these tech companies. The Institute on Taxation and Economic Policy claims that Amazon, Meta, and Alphabet avoided nearly $50 billion in taxes by comparing what they paid to the statutory rate of 21%. Tesla also managed to avoid federal taxes completely for 2025.
Despite the tax savings seen in 2025, these companies may face higher tax bills in the future due to the deferrals from this year. The changes in the tax code have had a substantial impact on company profits this year, but the long-term effects remain to be seen.

Read more at Yahoo Finance: Amazon, Meta, and Alphabet report plunging tax bills thanks to AI investment and new rules in Washington