CITIGROUP INCC
CITIGROUP INC Income Taxes Disclosure
INCOME TAXES
Income Tax Provision
Details of the Company’s income tax provision are presented below:
| In millions of dollars | 2025 | 2024 | 2023 | ||||||||
| 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 local | 328 | 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 local | 152 | 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.
Tax Rate
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:
| 2025 | 2024 | 2023 | ||||||||||||||||||
| In millions of dollars | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||||||||||
| 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 | ||||||||||||||||||||
| GILTI | 212 | 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) | ||||||||||||||
| Other | 19 | 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 translation | 184 | 0.9 | 115 | 0.7 | 770 | 6.0 | ||||||||||||||
| Deductible inflationary adjustment | (162) | (0.8) | (546) | (3.2) | (462) | (3.6) | ||||||||||||||
| Other | 75 | 0.4 | 162 | 1.0 | (115) | (0.9) | ||||||||||||||
| Brazil | ||||||||||||||||||||
| Rate differential | 144 | 0.7 | 139 | 0.8 | 188 | 1.4 | ||||||||||||||
| Other | (90) | (0.5) | (63) | (0.4) | 54 | 0.4 | ||||||||||||||
| India | ||||||||||||||||||||
| Rate differential | 243 | 1.2 | 265 | 1.6 | 624 | 4.8 | ||||||||||||||
| Reduced rate on capital gains | — | — | — | — | (303) | (2.3) | ||||||||||||||
| Other | 54 | 0.3 | 64 | 0.4 | (39) | (0.3) | ||||||||||||||
| Russia | ||||||||||||||||||||
| Rate differential | 37 | 0.2 | 58 | 0.3 | 162 | 1.3 | ||||||||||||||
| Local or provincial tax | (48) | (0.2) | (55) | (0.3) | (153) | (1.2) | ||||||||||||||
| Other | 4 | — | (74) | (0.4) | 18 | 0.1 | ||||||||||||||
| Mexico | ||||||||||||||||||||
| Rate differential | 131 | 0.7 | 181 | 1.1 | 129 | 1.0 | ||||||||||||||
| Goodwill impairment | 218 | 1.1 | — | — | — | — | ||||||||||||||
| Other | 177 | 0.9 | 2 | — | 58 | 0.5 | ||||||||||||||
| Netherlands | ||||||||||||||||||||
| Business exits | 271 | 1.4 | — | — | — | — | ||||||||||||||
| Other | (46) | (0.2) | 6 | — | 5 | — | ||||||||||||||
| Other | 716 | 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.
Deferred Income Taxes
Deferred income taxes at December 31 related to the following:
| In millions of dollars | 2025 | 2024 | ||||||
| Deferred tax assets | ||||||||
| Credit loss deduction | $ | 5,755 | $ | 5,477 | ||||
| Deferred compensation and employee benefits | 2,491 | 2,407 | ||||||
| Investment and loan basis differences | 4,156 | 4,463 | ||||||
| Tax credit and net operating loss carry-forwards | 14,022 | 15,878 | ||||||
| Fixed assets and leases | 5,191 | 4,878 | ||||||
| Other deferred tax assets | 8,195 | 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 taxes | 834 | 893 | ||||||
| Debt issuances | 293 | 308 | ||||||
| Other deferred tax liabilities | 1,890 | 1,381 | ||||||
| Gross deferred tax liabilities | $ | 5,295 | $ | 4,922 | ||||
| Net deferred tax assets | $ | 29,531 | $ | 29,845 | ||||
Unrecognized Tax Benefits
The following is a rollforward of the Company’s unrecognized tax benefits:
| In millions of dollars | 2025 | 2024 | 2023 | ||||||||
| Total unrecognized tax benefits at January 1 | $ | 1,309 | $ | 1,277 | $ | 1,311 | |||||
| Increases for current year’s tax positions | 33 | 79 | 59 | ||||||||
| Increases for prior years’ tax positions | 18 | 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 | |||||
The portions of the total unrecognized tax benefits at December 31, 2025, 2024 and 2023 that, if recognized, would affect Citi’s effective tax rate are $0.8 billion, $1.0 billion and $1.0 billion in each of the respective years. The remaining uncertain tax positions have offsetting amounts in other jurisdictions or are temporary differences.
Interest and penalties (not included in unrecognized tax benefits above) are a component of Provision for income taxes:
| 2025 | 2024 | 2023 | ||||||||||||||||||
| In millions of dollars | Pretax | Net of tax | Pretax | Net of tax | Pretax | Net 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.
As of December 31, 2025, Citi was under audit by the Internal Revenue Service and other major taxing jurisdictions around the world.
The following are the major tax jurisdictions in which the Company and its affiliates operate and the earliest tax year subject to examination:
| Jurisdiction | Tax year | ||||
| United States | 2016 | ||||
| New York State and City | 2009 | ||||
| Brazil | 2022 | ||||
| Hong Kong | 2024 | ||||
| India | 2018 | ||||
| Mexico | 2017 | ||||
| Singapore | 2024 | ||||
| United Kingdom | 2016 | ||||
Non-U.S. Earnings
Non-U.S. pretax earnings approximated $15.8 billion, $19.4 billion and $19.4 billion in 2025, 2024 and 2023, respectively. As a U.S. corporation, Citigroup and its U.S. subsidiaries are currently subject to U.S. taxation on all non-U.S. pretax earnings of non-U.S. branches. Beginning in 2018, there is a separate foreign tax credit (FTC) basket for branches. Also, dividends from a non-U.S. subsidiary or affiliate are effectively exempt from U.S. taxation. The Company provides income taxes on the book over tax basis differences of non-U.S. subsidiaries except to the extent that such differences are indefinitely reinvested outside the U.S.
At December 31, 2025, $5.9 billion of basis differences of non-U.S. entities was indefinitely reinvested. At the existing tax rates (including withholding taxes), additional taxes (net of U.S. FTCs) of $2.3 billion would have to be provided if such assertions were reversed.
Deferred Tax Assets
As of December 31, 2025, Citi had a valuation allowance of $5.0 billion, composed of $2.3 billion on its branch basket FTC carry-forwards, $2.1 billion on its U.S. residual DTA related to its non-U.S. branches, $0.4 billion on local non-U.S. DTAs, $0.1 billion on state net operating loss carry-forwards and $0.1 billion on state and local residual DTAs related to its non-U.S branches. There was an increase of $0.7 billion from the December 31, 2024 balance of $4.3 billion. The amount of Citi’s valuation allowances (VA) may change in future years.
In 2025, Citi’s VA for carry-forward FTCs in its branch basket decreased by $1.0 billion.
The level of branch pretax income, the local branch tax rate and the allocations of overall domestic losses (ODL) and expenses for U.S. tax purposes to the branch basket are the main factors in determining the branch VA. There was no branch basket VA release in 2025.
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 credits | 13.2 | 12.7 | ||||||
| Total federal | $ | 22.8 | $ | 22.6 | ||||
| State and local | ||||||||
| New York NOLs | $ | 1.1 | $ | 1.4 | ||||
| Other state NOLs | 0.1 | 0.1 | ||||||
| Future tax deductions | 2.4 | 2.5 | ||||||
| Total state and local | $ | 3.6 | $ | 4.0 | ||||
| Non-U.S. | ||||||||
| NOLs | $ | 0.5 | $ | 0.8 | ||||
| Future tax deductions | 2.6 | 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.
The following table summarizes the amounts of tax carry-forwards and their expiration dates:
| In billions of dollars | ||||||||
| Year of expiration | December 31, 2025 | December 31, 2024 | ||||||
U.S. tax return general basket foreign tax credit carry-forwards(1) | ||||||||
| 2025 | $ | — | $ | — | ||||
| 2027 | 0.3 | 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 | ||||
| 2029 | 0.2 | 0.2 | ||||||
| 2033 | 1.3 | 1.4 | ||||||
| 2034 | 0.4 | 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 | $ | — | ||||
| 2032 | 0.4 | 0.4 | ||||||
| 2033 | 0.3 | 0.3 | ||||||
| 2034 | 0.2 | 0.2 | ||||||
| 2035 | 0.2 | 0.2 | ||||||
| 2036 | 0.2 | 0.2 | ||||||
| 2037 | 0.5 | 0.5 | ||||||
| 2038 | 0.5 | 0.5 | ||||||
| 2039 | 0.7 | 0.7 | ||||||
| 2040 | 0.7 | 0.7 | ||||||
| 2041 | 0.8 | 0.8 | ||||||
| 2042 | 0.7 | 0.7 | ||||||
| 2043 | 0.3 | 0.3 | ||||||
| 2044 | 0.3 | 0.3 | ||||||
| 2045 | 0.3 | — | ||||||
| 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 | ||||||
| 2033 | 1.6 | 1.6 | ||||||
| 2034 | 1.6 | 1.9 | ||||||
| 2035 | 2.8 | 3.3 | ||||||
| 2036 | 2.1 | 2.1 | ||||||
| 2037 | 1.0 | 1.0 | ||||||
| Unlimited carry-forward period | 5.8 | 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.
Although realization is not assured, Citi believes that the realization of the recognized net DTAs of $29.5 billion at December 31, 2025 is more-likely-than-not, based on expectations as to future taxable income in the jurisdictions in which the DTAs arise and consideration of available tax planning strategies (as defined in ASC 740, Income Taxes).
The majority of Citi’s U.S. federal net operating loss carry-forward and all of its New York State and City net operating loss carry-forwards are subject to a carry-forward period of 20 years. This provides enough time to fully utilize the DTAs pertaining to these existing NOL carry-forwards. This is due to Citi’s forecast of sufficient U.S. taxable income and because New York State and City continue to tax Citi’s non-U.S. income.
With respect to the FTCs component of the DTAs, the carry-forward period is 10 years. Utilization of FTCs in any year is generally limited to 21% of foreign source taxable income in that year. However, ODL that Citi has incurred of approximately $10 billion as of December 31, 2025 are allowed to be reclassified as foreign source income to the extent of 50%–100% (at taxpayer’s election) of domestic source income produced in subsequent years. Such resulting foreign source income would help support the realization of the FTC carry-forwards after VA. As noted in the tables above, Citi’s FTC carry-forwards were $0.3 billion ($2.6 billion before VA) as of December 31, 2025, compared to $0.7 billion ($4.0 billion before VA) as of December 31, 2024. The increased VA on branch FTCs is reflected in the “Non-U.S. income tax rate differential” line in the “Tax Rate” section above. Citi believes that it will more-likely-than-not generate sufficient U.S. taxable income within the 10-year carry-forward period to be able to utilize the net FTCs after the VA, after considering any FTCs produced in the tax return for such period, which must be used prior to any carry-forward utilization.
Income Taxes Paid
Details of the Company’s income taxes paid are presented below:
| In millions of dollars | 2025 | 2024 | 2023 | ||||||||
| Federal | $ | (68) | $ | (334) | $ | 47 | |||||
| State and local | |||||||||||
| Other | 271 | 54 | 220 | ||||||||
| Total state and local | $ | 271 | $ | 54 | $ | 220 | |||||
| Non-U.S. | |||||||||||
| Brazil | NM | $ | 436 | $ | 467 | ||||||
| Hong Kong | NM | 375 | NM | ||||||||
| India | $ | 730 | 757 | 942 | |||||||
| Mexico | 1,172 | 534 | 679 | ||||||||
| United Kingdom | NM | NM | 575 | ||||||||
| Other | 4,409 | 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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 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.