METLIFE INCMET
METLIFE INC Income Taxes Disclosure
22. Income Tax
The Company’s provision for income tax was as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Current: | |||||||||||||||||
| U.S. federal | $ | 179 | $ | 707 | $ | 381 | |||||||||||
| U.S. state and local | 80 | 90 | 46 | ||||||||||||||
| Non-U.S. | 992 | 1,147 | 1,240 | ||||||||||||||
| Subtotal | 1,251 | 1,944 | 1,667 | ||||||||||||||
| Deferred: | |||||||||||||||||
| U.S. federal | (89) | (56) | (591) | ||||||||||||||
| U.S. state and local | (3) | — | (4) | ||||||||||||||
| Non-U.S. | 99 | (710) | (512) | ||||||||||||||
| Subtotal | 7 | (766) | (1,107) | ||||||||||||||
| Provision for income tax expense (benefit) | $ | 1,258 | $ | 1,178 | $ | 560 | |||||||||||
The Company’s income (loss) before income tax expense (benefit) was as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Income (loss): | |||||||||||||||||
| U.S. | $ | 599 | $ | 3,955 | $ | (95) | |||||||||||
| Non-U.S. | 4,062 | 1,667 | 2,257 | ||||||||||||||
| Total | $ | 4,661 | $ | 5,622 | $ | 2,162 | |||||||||||
The table below presents the reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported. See Note 1 for further information on the ASU recently adopted on a prospective basis by the Company.
Year Ended December 31, | |||||||||||
| 2025 | |||||||||||
Amount | % Income (Loss) | ||||||||||
(Dollars in millions) | |||||||||||
Income (loss) before provision for income tax | $ | 4,661 | |||||||||
Tax provision at U.S. statutory rate | 979 | 21.0 | % | ||||||||
U.S. state and local, net of U.S. federal (1) | 55 | 1.2 | % | ||||||||
Foreign tax effects: | |||||||||||
| Japan | |||||||||||
Statutory tax rate difference between Japan & U.S. | 126 | 2.7 | % | ||||||||
| Other | 43 | 0.9 | % | ||||||||
| Mexico | |||||||||||
| Statutory tax rate difference between Mexico & U.S. | 67 | 1.4 | % | ||||||||
| Other | (9) | (0.2) | % | ||||||||
Other foreign jurisdictions | 19 | 0.4 | % | ||||||||
Effects of cross border tax laws | 66 | 1.4 | % | ||||||||
Tax credits | (53) | (1.1) | % | ||||||||
Nontaxable or nondeductible items | |||||||||||
Tax-exempt income | (79) | (1.7) | % | ||||||||
Other | (1) | — | % | ||||||||
Changes in unrecognized tax benefits | (13) | (0.3) | % | ||||||||
Other adjustments | |||||||||||
Prior period adjustments | 87 | 1.9 | % | ||||||||
Other | (29) | (0.6) | % | ||||||||
| Provision for income tax expense (benefit) and effective tax rate | $ | 1,258 | 27.0 | % | |||||||
__________________
(1)State and local taxes in New York and New York City made up the majority (greater than 50%) of the tax effect in this category.
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (In millions) | |||||||||||
| Tax provision at U.S. statutory rate | $ | 1,181 | $ | 454 | |||||||
| Tax effect of: | |||||||||||
| Dividend received deduction | (19) | (18) | |||||||||
| Tax-exempt income | (43) | (34) | |||||||||
Prior year tax (1) | 44 | (12) | |||||||||
| Low income housing tax credits | 6 | (116) | |||||||||
| Other tax credits | (38) | (39) | |||||||||
Foreign tax rate differential (2), (3) | 22 | 312 | |||||||||
Changes in tax law (4) | — | (198) | |||||||||
Change in valuation allowance (4) | 6 | 187 | |||||||||
| Other, net | 19 | 24 | |||||||||
| Provision for income tax expense (benefit) | $ | 1,178 | $ | 560 | |||||||
__________________
(1)As discussed further below, prior year tax primarily includes non-cash charges related to an uncertain tax position of $57 million for the year ended December 31, 2024.
(2)For the year ended December 31, 2024, foreign tax rate differential includes tax charges of $5 million related to the U.S. tax on Global Intangible Low-Taxed Income (“GILTI”) of which $33 million is a tax charge, offset by a $28 million tax benefit revising the 2023 estimate.
(3)For the year ended December 31, 2023, foreign tax rate differential includes tax charges of $28 million related to MetLife Malaysia and $22 million related to the U.S. tax on GILTI of which $28 million is a tax charge, offset by a $6 million tax benefit revising the 2022 estimate.
(4)For the year ended December 31, 2023, changes in tax law include tax benefits of $198 million and a change in valuation allowance includes a tax charge of $198 million related to adjustments of deferred taxes due to the enactment of the Bermuda Corporate Income Tax.
The Company paid income taxes, net of refunds, of $1.6 billion during the year ended December 31, 2025. Of this amount, U.S. federal income taxes paid were $555 million, U.S. state income taxes paid were $19 million and foreign income taxes paid were $990 million. Within foreign income taxes paid, net of refunds, $453 million, $241 million and $85 million were paid in Japan, Mexico and Korea, respectively.
Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In millions) | |||||||||||
| Deferred income tax assets: | |||||||||||
| Policyholder liabilities and receivables | $ | 4,500 | $ | 4,233 | |||||||
| Net operating loss carryforwards (1) | 298 | 247 | |||||||||
| Employee benefits | 575 | 519 | |||||||||
| Capital loss carryforwards | 27 | 31 | |||||||||
| Tax credit carryforwards (2) | 406 | 299 | |||||||||
| Net unrealized investment losses | 5,447 | 5,879 | |||||||||
| Litigation-related and government mandated | 107 | 103 | |||||||||
| Other | 277 | 260 | |||||||||
| Total gross deferred income tax assets | 11,637 | 11,571 | |||||||||
| Less: Valuation allowance (3) | 601 | 685 | |||||||||
| Total net deferred income tax assets | 11,036 | 10,886 | |||||||||
| Deferred income tax liabilities: | |||||||||||
| Investments, including derivatives | 3,991 | 3,469 | |||||||||
| Intangibles | 933 | 836 | |||||||||
| DAC | 4,063 | 3,719 | |||||||||
| Total deferred income tax liabilities | 8,987 | 8,024 | |||||||||
| Net deferred income tax asset (liability) | $ | 2,049 | $ | 2,862 | |||||||
__________________
(1)The Company has recorded a deferred tax asset of $298 million related to U.S. state and non-U.S. net operating loss carryforwards and an offsetting valuation allowance for the year ended December 31, 2025. Certain net operating loss carryforwards will expire between 2026 and 2044, whereas others have an unlimited carryforward period.
(2)Tax credit carryforwards for the year ended December 31, 2025 primarily reflect foreign tax credits. Certain foreign tax credits will expire between 2035 and 2038, whereas others have no expiration date.
(3)The Company’s deferred tax asset for the year ended December 31, 2025 includes an offsetting valuation allowance primarily related to other non-U.S. jurisdictions.
The Company has not provided for U.S. deferred taxes on the remaining excess of book bases over tax bases of certain investments in non-U.S. subsidiaries that are essentially permanent in duration. The amount of deferred tax liability related to the Company’s remaining basis difference in these non-U.S. subsidiaries was $54 million at December 31, 2025.
The Company files income tax returns with the U.S. federal government and various U.S. state and local jurisdictions, as well as non-U.S. jurisdictions. The Company is under continuous examination by the Internal Revenue Service (“IRS”) and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state, or local income tax examinations for years prior to 2017. In material non-U.S. jurisdictions, the Company is no longer subject to income tax examinations for years prior to 2017.
In 2025, related to a federal income tax audit of MetLife, Inc. and its subsidiaries for tax years 2017, 2018 and 2019, the Company and the IRS entered into agreements resulting in the resolution of most audit issues. Accordingly, the Company recorded a non-cash expense to net income of $66 million, net of tax, comprised of a $61 million tax expense recorded in provision for income tax expense and a $6 million interest expense ($5 million, net of tax) included in other expenses.
The Company’s overall liability for unrecognized tax benefits may increase or decrease in the next 12 months. For example, U.S. federal tax legislation and regulation could impact unrecognized tax benefits. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period.
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Balance at January 1, | $ | 218 | $ | 131 | $ | 129 | |||||||||||
| Additions for tax positions of prior years (1) | 28 | 127 | 27 | ||||||||||||||
Reductions for tax positions of prior years | (17) | (43) | (30) | ||||||||||||||
| Additions for tax positions of current year | 15 | 4 | 5 | ||||||||||||||
| Reductions for tax positions of current year | — | — | — | ||||||||||||||
| Settlements with tax authorities | (46) | (1) | — | ||||||||||||||
| Balance at December 31, | $ | 198 | $ | 218 | $ | 131 | |||||||||||
| Unrecognized tax benefits that, if recognized, would impact the effective rate | $ | 147 | $ | 162 | $ | 90 | |||||||||||
__________________
(1)For the year ended December 31, 2024, primarily includes the addition of state reserves and International Financial Reporting Standard 17 related reserves in foreign jurisdictions.
The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses.
Interest was as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Interest expense (benefit) recognized on the consolidated statements of operations | $ | 18 | $ | 7 | $ | 7 | |||||||||||
| December 31, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| (In millions) | |||||||||||||||||
| Interest included in other liabilities on the consolidated balance sheets | $ | 47 | $ | 29 | |||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 25, 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.