25. Income Taxes

The components of income tax expense for 2025, 2024 and 2023, are as follows:


(in millions)	2025			2024			2023
Current income tax expense:
Federal	$	1,250		$	960		$	641
State and local		214			142			176
Foreign		844			787			538
Total net current income tax expense		2,308			1,889			1,355
Deferred income tax expense (benefit):
Federal		(530	)		(105	)		101
State and local		(30	)		—			11
Foreign		(71	)		(1	)		12
Total net deferred income tax expense (benefit)		(631	)		(106	)		124
Total income tax expense	$	1,677		$	1,783		$	1,479

Income tax expense has been based on the following components of income before taxes, less net income (loss) attributable to NCI - CIPs:


(in millions)	2025		2024		2023
Domestic	$	3,837	$	5,139	$	4,565
Foreign		3,520		3,013		2,416
Total	$	7,357	$	8,152	$	6,981

The foreign income before taxes includes countries that have statutory tax rates that are different than the US federal statutory tax rate of 21%, such as the UK, Channel Islands, British Virgin Islands and Germany.

The components of cash paid for income taxes, net of refunds for 2025 are as follows:


(in millions)	2025
Federal	$	1,089
State and local		307
Foreign		902
Total	$	2,298

Income taxes paid, net of refunds exceeded five percent of the total in the following jurisdictions:


(in millions)	2025
State and local:
New York City	$	163
Foreign:
United Kingdom	$	410

A reconciliation of income tax expense with expected federal income tax expense computed at the applicable federal income tax rate of 21% for 2025 is as follows:


(in millions)	2025
Statutory income tax expense	$	1,545		21	%
State and local income taxes, net of federal income tax effect(1)		137		2
Foreign tax effects
United Kingdom
Statutory tax rate difference between United Kingdom and United States		79		1
Nontaxable income from Partnerships		(169	)	(2	)
Other		21		—
Channel Islands
Statutory tax rate difference between Channel Islands and United States		79		1
Other		1		—
Other foreign jurisdictions		56		1
Effect of cross-border tax laws
Subpart F Income (net of FTC)		112		2
Global intangible low-taxed income (net of FTC)		100		1
Base erosion and anti-abuse tax		106		1
Tax benefit from changes in organizational structure		(366	)	(5	)
Losses from foreign partnerships		(107	)	(1	)
Other		(60	)	(1	)
Tax credits		(10	)	—
Nontaxable & nondeductible items
Nontaxable interest income		(88	)	(1	)
Nondeductible fair value adjustment on contingent consideration		142		2
Other		7		—
Changes in unrecognized tax benefits		(18	)	—
Changes in Valuation Allowances
Valuation allowance from changes in organizational structure		92		1
Other Adjustments
Other		18		—
Income tax expense	$	1,677		23	%

(1)

State taxes in New York State, New York City and California make up the majority (greater than 50 percent) of the tax effect in this category.

A reconciliation of income tax expense with expected federal income tax expense computed at the applicable federal income tax rate of 21% for 2024 and 2023 is as follows:


(in millions)	2024					2023
Statutory income tax expense	$	1,712		21	%	$	1,466		21	%
Increase (decrease) in income taxes resulting from:
State and local taxes (net of federal benefit)		130		2			110		2
Impact of federal, foreign, state, and local tax rate changes on deferred taxes		12		—			—		—
Stock-based compensation awards		(37	)	—			(41	)	(1	)
Resolution of outstanding tax matters		—		—			(204	)	(3	)
Intellectual property reorganization		(137	)	(2	)		—		—
Effect of foreign tax rates		84		1			112		2
Other		19		—			36		—
Income tax expense	$	1,783		22	%	$	1,479		21	%

Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements. These temporary differences result in taxable or deductible amounts in future years.

The components of deferred income tax assets and liabilities are shown below:


	December 31,
(in millions)	2025			2024
Deferred income tax assets:
Compensation and benefits	$	534		$	354
Realized investment gains		24			—
Loss carryforwards		115			103
Foreign tax credit carryforward		105			39
Capitalized costs		313			276
Outside basis differences on foreign subsidiaries		389			—
Other		855			795
Gross deferred tax assets		2,335			1,567
Less: Deferred tax valuation allowances		(181	)		(69	)
Deferred tax assets net of valuation allowances		2,154			1,498
Deferred income tax liabilities:
Goodwill and acquired indefinite-lived intangibles		4,943			4,199
Acquired finite-lived intangibles		1,147			53
Unrealized investment gains		—			58
Other		493			341
Gross deferred tax liabilities		6,583			4,651
Net deferred tax (liabilities)	$	(4,429	)	$	(3,153	)

Deferred income tax assets and liabilities are recorded net when related to the same tax jurisdiction. At December 31, 2025, the Company recorded on the consolidated statement of financial condition deferred income tax assets, within other assets, and deferred income tax liabilities of $189 million and $4.6 billion, respectively. At December 31, 2024, the Company recorded on the consolidated statement of financial condition deferred income tax assets, within other assets, and deferred income tax liabilities of $181 million and $3.3 billion, respectively.

Income tax expense for 2025 included a net discrete tax benefit of $251 million realized from changes in the Company's organizational entity structure, $67 million related to vested stock-based compensation awards, and $29 million recognized in connection with the Charitable Contribution. Income tax expense for 2024 included discrete tax benefits of $137 million, recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure, $63 million related to the realization of capital losses from changes in the Company's organizational entity structure, $37 million related to vested stock-based compensation awards, and a net noncash discrete tax expense of $14 million related to the revaluation of deferred income tax liabilities

At December 31, 2025 and 2024, the Company had available state net operating loss carryforwards of $2.8 billion and $2.9 billion, respectively, which will begin to expire in 2027. At December 31, 2025 and 2024, the Company had foreign net operating loss carryforwards of $266 million and $193 million, respectively, of which $21 million will begin to expire in 2026. At December 31, 2025, the Company had foreign tax credit carryforwards for income tax purposes of $105 million which will begin to expire in 2034.

At December 31, 2025 and 2024, the Company had $181 million and $69 million of valuation allowances for deferred income tax assets, respectively, recorded on the consolidated statements of financial condition.

Current income taxes are recorded net on the consolidated statements of financial condition when related to the same tax jurisdiction. At December 31, 2025, the Company had current income taxes receivable and payable of $247 million and $188 million, respectively, recorded in other assets and accounts payable and accrued liabilities, respectively. At December 31, 2024, the Company had current income taxes receivable and payable of $215 million and $134 million, respectively, recorded in other assets and accounts payable and accrued liabilities, respectively.

The following tabular reconciliation presents the total amounts of gross unrecognized tax benefits:


(in millions)	2025			2024			2023
Balance at January 1	$	517		$	749		$	912
Additions for tax positions of prior years		15			30			25
Reductions for tax positions of prior years		(8	)		(10	)		(22	)
Additions based on tax positions related to current year		79			51			49
Additions related to business combinations		—			—			16
Lapse of Statute Limitation		(5	)		—			—
Settlements		(87	)		(303	)		(231	)
Balance at December 31	$	511		$	517		$	749

Included in the balance of unrecognized tax benefits at December 31, 2025, 2024 and 2023, respectively, are $435 million, $431 million and $505 million of tax benefits that, if recognized, would affect the effective tax rate.

The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. Related to the unrecognized tax benefits noted above, the Company accrued interest and penalties of $(30) million during 2025 and in total, as of December 31, 2025, had recognized a liability for interest and penalties of $173 million. The Company accrued interest and penalties of $63 million during 2024 and in total, as of December 31, 2024, had recognized a liability for interest and penalties of $203 million. The Company accrued interest and penalties of $(20) million during 2023 and in total, as of December 31, 2023, had recognized a liability for interest and penalties of $140 million.

BlackRock is subject to US federal income tax, state and local income tax, and foreign income tax in multiple jurisdictions. Tax years after 2016 remain open to US federal income tax examination.

During 2020 and 2021, the Internal Revenue Service commenced its examination of BlackRock’s 2017 through 2018 tax years and 2019 tax year, respectively. During 2023, the Internal Revenue Service commenced its examination of BlackRock's 2016 tax year, for which the examination was concluded in 2025.

The Company is currently under audit in several state and local jurisdictions. The significant state and local income tax examinations are in New York State for tax years 2015 through 2020, and New York City for tax years 2015 through 2017. New York City tax examination for 2012 through 2014 was concluded during 2025. No open state and local tax examinations cover years earlier than 2015.

From time to time, BlackRock may receive or be subject to tax authorities’ assessments and challenges related to income taxes. BlackRock does not currently expect the ultimate resolution of any other existing matters to be material to the consolidated financial statements.

Historical Timeline

Fiscal Year	Filed
2025	Feb 25, 2026	Showing above
2024	Feb 25, 2025

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

BlackRock, Inc. Income Taxes Disclosure

Historical Timeline

About Income Taxes Disclosures

Other Available Disclosures