Blackstone Inc.BX
Blackstone Inc. Income Taxes Disclosure
14. Income Taxes
The Income Before Provision for Taxes consists of the following:
Year Ended December 31, | ||||||||||||
2025 |
2024 |
2023 | ||||||||||
| Income Before Provision (Benefit) for Taxes |
||||||||||||
| U.S. Domestic Income |
$ | 6,721,171 | $ | 6,029,702 | $ | 2,577,184 | ||||||
| Foreign Income |
450,475 | 429,778 | 380,530 | |||||||||
| |
|
|
|
|
|
|
|
| ||||
| $ | 7,171,646 | $ | 6,459,480 | $ | 2,957,714 | |||||||
| |
|
|
|
|
|
|
|
| ||||
The Provision for Taxes consists of the following:
Year Ended December 31, | ||||||||||||
2025 |
2024 |
2023 | ||||||||||
Current |
||||||||||||
Federal Income Tax |
$ |
354,543 |
$ |
424,659 |
$ |
362,144 |
||||||
Foreign Income Tax |
142,098 |
128,757 |
112,861 |
|||||||||
State and Local Income Tax |
186,952 |
120,454 |
186,851 |
|||||||||
683,593 |
673,870 |
661,856 |
||||||||||
Deferred |
||||||||||||
Federal Income Tax |
362,993 |
265,749 |
(94,732 |
) | ||||||||
Foreign Income Tax |
(3,823 |
) |
(471 |
) |
(7,020 |
) | ||||||
State and Local Income Tax |
82,260 |
82,523 |
(46,643 |
) | ||||||||
441,430 |
347,801 |
(148,395 |
) | |||||||||
Provision for Taxes |
$ |
1,125,023 |
$ |
1,021,671 |
$ |
513,461 |
||||||
Effective Income Tax Rate |
15.7 |
% |
15.8 |
% |
17.4 |
% | ||||||
199
The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate:
Year Ended December 31, 2025 | ||||||||
Income before Provision for Taxes |
$ |
7,171,646 |
||||||
Statutory U.S. Federal Tax Rate |
$ |
1,506,046 |
21.0 |
% | ||||
State and Local Income Taxes, Net of Federal Benefit (a) |
206,841 |
2.9 |
% | |||||
Foreign Tax Effects |
76,209 |
1.1 |
% | |||||
Nontaxable or Nondeductible Items |
||||||||
Income Passed Through to Non-Controlling Interest Holders |
(632,663 |
) |
-8.8 |
% | ||||
Other Nontaxable or Nondeductible Items |
30,471 |
0.4 |
% | |||||
Other Adjustments |
(61,881 |
) |
-0.9 |
% | ||||
Effective Income Tax Rate |
$ |
1,125,023 |
15.7 |
% | ||||
(a) |
State and local taxes in New York State and New York City made up the majority (50% or greater) of the tax effect in this category. |
2024 vs. | ||||||||||||
Year Ended December 31, | ||||||||||||
2024 |
2023 |
2023 | ||||||||||
Statutory U.S. Federal Income Tax Rate |
21.0 | % | 21.0 | % | — | |||||||
Income Passed Through to Non-Controlling Interest Holders |
-9.0 | % | -8.2 | % | -0.8 | % | ||||||
State and Local Income Taxes |
2.9 | % | 4.3 | % | -1.4 | % | ||||||
Other |
0.9 | % | 0.3 | % | 0.6 | % | ||||||
Effective Income Tax Rate |
15.8 | % | 17.4 | % | -1.6 | % | ||||||
Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences is as follows:
December 31, | ||||||||
2025 |
2024 | |||||||
Deferred Tax Assets |
||||||||
Investment Basis Differences/Net Unrealized Gains and Losses |
$ |
1,879,975 |
$ |
1,737,508 |
||||
Other |
211,605 |
287,639 |
||||||
Total Deferred Tax Assets Before Valuation Allowance |
2,091,580 |
2,025,147 |
||||||
Valuation Allowance |
(35,357 |
) |
(21,199 |
) | ||||
Total Deferred Tax Assets |
2,056,223 |
2,003,948 |
||||||
Deferred Tax Liabilities |
||||||||
Investment Basis Differences/Net Unrealized Gains and Losses |
14,794 |
12,282 |
||||||
Other |
1,681 |
1,953 |
||||||
Total Deferred Tax Liabilities |
16,475 |
14,235 |
||||||
Net Deferred Tax Assets |
$ |
2,039,748 |
$ |
1,989,713 |
||||
The increase in the Net Deferred tax Assets for the year ended December 31, 2025, compared to the year ended December 31, 2024, was primarily due to recognition of additional tax basis in certain assets and recording corresponding deferred tax benefits related to quarterly exchanges of Blackstone Holdings Partnership units for common shares of Blackstone Inc. Realization of deferred tax assets depends on the expectation and character of future taxable income. Blackstone has no significant net operating losses carryforward as of December 31, 2025.
Blackstone has determined that deferred tax assets recorded during the period primarily related to certain state and local tax credits are not more likely than not to be realized and therefore has established a valuation allowance of $
35.4
million as of December 31, 2025.
In evaluating the ability to realize deferred tax assets, Blackstone among other things, considers projections of taxable income (including character of such income), beginning with historic results and incorporating assumptions of the amount of future pretax operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that Blackstone uses to manage its business. To the extent any portion of the deferred tax assets are not considered to be more likely than not to be realized, valuation allowances are recorded.
Currently, Blackstone does not believe it meets the indefinite reversal criteria that would preclude Blackstone from recognizing a deferred tax liability with respect to its foreign subsidiaries. Therefore, if applicable Blackstone recorded a deferred tax liability for any outside basis difference of an investment in a foreign subsidiary.
Blackstone files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, Blackstone is subject to examination by federal and certain state, local and foreign tax authorities. As of December 31, 2025, the most material jurisdictions where Blackstone entities are under active examination are New York State and City. The following are the major filing jurisdictions and their respective earliest open period subject to
examination:
Jurisdiction |
Year |
|||
Federal |
2022 |
|||
New York City |
2009 |
|||
New York State |
2016 |
|||
United Kingdom |
2011 |
|||
The Cash Payments for Income Taxes consists of the following:
Jurisdiction |
Year Ended December 31, 2025 |
|||
Federal (a) |
$ |
409,537 |
||
New York City |
68,500 |
|||
State — Other |
2,999 |
|||
Foreign |
81,524 |
|||
$ |
562,560 |
|||
(a) |
Federal payments include cash paid for the transferable tax credits. |
Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were:
December 31, | ||||||||||||
2025 |
2024 |
2023 | ||||||||||
Unrecognized Ta x B enefits — January 1 |
$ |
251,457 |
$ |
210,778 |
$ |
153,624 |
||||||
Additions Based on Tax Positions Related to Current Year |
59,877 |
46,572 |
19,807 |
|||||||||
Reductions for Tax Positions of Current Year |
— |
— |
(19,737 |
) | ||||||||
Additions for Tax Positions of Prior Years |
4,396 |
— |
57,081 |
|||||||||
Reductions for Tax Positions of Prior Years |
— |
(6,111 |
) |
— |
||||||||
Settlements |
(471 |
) |
— |
— |
||||||||
Exchange Rate Fluctuations |
339 |
218 |
3 |
|||||||||
Unrecognized Tax Benefits — December 31 |
$ |
315,598 |
$ |
251,457 |
$ |
210,778 |
||||||
If recognized, the above tax benefits would reduce the annual effective rate. Blackstone believes the liability established for unrecognized tax benefits is adequate in relation to the potential for additional assessments. It is reasonably possible that significant changes in the balance of unrecognized tax benefits may occur during the twelve months subsequent to December 31, 2025; however, it is not possible to estimate the expected change to the total unrecognized tax benefits and its impact on Blackstone’s effective tax rate during the twelve months subsequent to December 31, 2025.
The unrecognized tax benefits are recorded in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition.
During the years ended December 31, 2025, 2024 and 2023, Blackstone accrued no penalties and accrued interest expense related to unrecognized tax benefits of $
33.9
million, $
29.1
million and $
22.8
million, respectively.
Other Income — Change in Tax Receivable Agreement Liability
In 2025 and 2024, the $
6.6
million and $
(41.2
) million, respectively, Change in Tax Receivable Agreement Liability was primarily attributable to a change in Blackstone’s state tax apportionment.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
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.