UNITEDHEALTH GROUP INCUNH
UNITEDHEALTH GROUP INC Income Taxes Disclosure
Income Taxes
The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported. The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year, excluding any deferred income tax assets and liabilities of acquired businesses.
The components of income before income taxes, based upon tax jurisdiction, for the years ended December 31 are as follows:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Income before income taxes: | ||||||||||||||||||||
| Domestic | $ | 14,893 | $ | 28,264 | $ | 29,210 | ||||||||||||||
| Foreign | (196) | (8,193) | (98) | |||||||||||||||||
| Total income before income taxes | $ | 14,697 | $ | 20,071 | $ | 29,112 | ||||||||||||||
The components of the provision for income taxes for the years ended December 31 are as follows:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Current Provision: | ||||||||||||||||||||
| Federal | $ | 1,381 | $ | 3,453 | $ | 4,418 | ||||||||||||||
| State and local | 598 | 416 | 716 | |||||||||||||||||
| Foreign | 1,663 | 1,256 | 1,079 | |||||||||||||||||
| Total current provision | 3,642 | 5,125 | 6,213 | |||||||||||||||||
| Deferred Benefit: | ||||||||||||||||||||
| Federal | (1,149) | (621) | 34 | |||||||||||||||||
| State and local | (227) | 18 | 2 | |||||||||||||||||
| Foreign | (376) | 307 | (281) | |||||||||||||||||
| Total deferred benefit | (1,752) | (296) | (245) | |||||||||||||||||
| Total provision for income taxes | $ | 1,890 | $ | 4,829 | $ | 5,968 | ||||||||||||||
The reconciliation of the tax provision at the U.S. federal statutory rate to the provision for income taxes and the effective tax rate for the year ended December 31, 2025 is as follows:
| (in millions, except percentages) | 2025 | |||||||||||||
| Tax provision at the U.S. federal statutory rate | $ | 3,086 | 21.0 | % | ||||||||||
| Foreign tax effects (a) | (789) | (5.3) | ||||||||||||
| State income taxes, net of federal benefit (b) | 151 | 1.0 | ||||||||||||
| Nontaxable or nondeductible items (c) | (547) | (3.7) | ||||||||||||
| Other, net | (11) | (0.1) | ||||||||||||
| Provision for income taxes | $ | 1,890 | 12.9 | % | ||||||||||
(a)Comprised primarily of tax rate differential in Ireland and tax attributes in Luxembourg.
(b)State taxes in California, Florida, New York and Massachusetts contributed to the majority of the tax effect in this category.
(c)Comprised primarily of tax impacts of net portfolio divestitures.
The reconciliation of the tax provision at the U.S. federal statutory rate to the provision for income taxes and the effective tax rate for the years ended December 31 are as follows:
| (in millions, except percentages) | 2024 | 2023 | ||||||||||||||||||||||||
| Tax provision at the U.S. federal statutory rate | $ | 4,215 | 21.0 | % | $ | 6,114 | 21.0 | % | ||||||||||||||||||
| State income taxes, net of federal benefit | 343 | 1.7 | 567 | 2.0 | ||||||||||||||||||||||
| Share-based awards - excess tax benefit | (96) | (0.5) | (75) | (0.3) | ||||||||||||||||||||||
| Non-deductible compensation | 171 | 0.9 | 174 | 0.6 | ||||||||||||||||||||||
| Foreign rate differential | (369) | (1.8) | (442) | (1.5) | ||||||||||||||||||||||
| Tax effect of dispositions and other strategic transactions | 1,215 | 6.1 | (29) | (0.1) | ||||||||||||||||||||||
| Other, net | (650) | (3.3) | (341) | (1.2) | ||||||||||||||||||||||
| Provision for income taxes | $ | 4,829 | 24.1 | % | $ | 5,968 | 20.5 | % | ||||||||||||||||||
Taxes Paid
A summary of total taxes paid for the year ended December 31, 2025 is as follows:
| (in millions) | 2025 | |||||||
| Domestic: | ||||||||
| State and local premium taxes | $ | 2,371 | ||||||
| Payroll and other taxes | 2,062 | |||||||
| Federal income taxes | 1,209 | |||||||
| State and local income taxes | 316 | |||||||
| Total domestic taxes paid | $ | 5,958 | ||||||
| Domestic taxes paid as a percentage of total taxes paid | 73 | % | ||||||
| Foreign: | ||||||||
| Income taxes (a) | $ | 2,189 | ||||||
| Other taxes | 40 | |||||||
| Total foreign taxes paid | $ | 2,229 | ||||||
| Foreign taxes paid as a percentage of total taxes paid | 27 | % | ||||||
| Total taxes paid | $ | 8,187 | ||||||
(a) Comprised primarily of taxes paid to Ireland.
Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting bases of assets and liabilities based on enacted tax rates and laws. The components of deferred income tax assets and liabilities as of December 31 are as follows:
| (in millions) | 2025 | 2024 | ||||||||||||
| Deferred income tax assets: | ||||||||||||||
| Accrued expenses and allowances | $ | 1,282 | $ | 1,055 | ||||||||||
| U.S. federal and state net operating loss carryforwards | 566 | 442 | ||||||||||||
Share-based compensation | 210 | 189 | ||||||||||||
Nondeductible liabilities | 355 | 343 | ||||||||||||
Lease liability | 850 | 846 | ||||||||||||
| Unrecognized tax benefits | 430 | 358 | ||||||||||||
| Net unrealized losses on investments | 326 | 669 | ||||||||||||
Other-domestic | 291 | 239 | ||||||||||||
Other-non-U.S. | 275 | 80 | ||||||||||||
| Subtotal | 4,585 | 4,221 | ||||||||||||
| Less: valuation allowances | (478) | (397) | ||||||||||||
| Total deferred income tax assets | 4,107 | 3,824 | ||||||||||||
| Deferred income tax liabilities: | ||||||||||||||
| U.S. federal and state intangible assets | (4,347) | (4,479) | ||||||||||||
Capitalized software | (152) | (288) | ||||||||||||
Depreciation and amortization | (435) | (400) | ||||||||||||
| Prepaid expenses | (333) | (374) | ||||||||||||
Outside basis in partnerships | (402) | (960) | ||||||||||||
Lease right-of-use asset | (800) | (833) | ||||||||||||
Other-non-U.S. | (59) | (110) | ||||||||||||
| Total deferred income tax liabilities | (6,528) | (7,444) | ||||||||||||
| Net deferred income tax liabilities | $ | (2,421) | $ | (3,620) | ||||||||||
Valuation allowances are provided when it is considered more likely than not deferred tax assets will not be realized. The valuation allowances primarily relate to future tax benefits on certain federal, state and non-U.S. net operating loss carryforwards. Substantially all of the federal net operating loss carryforwards have indefinite carryforward periods; state net operating loss carryforwards expire beginning in 2026 through 2045, with some having an indefinite carryforward period. Additionally, as of December 31, 2025 and 2024, the Company has historical non-U.S. net operating loss carryforwards for which a deferred tax asset and valuation allowance of $5.2 billion and $4.1 billion, respectively, are not established because realization of the loss carryforwards is remote.
As of December 31, 2025, except for subsidiaries held for sale, the Company’s undistributed earnings from non-U.S. subsidiaries are intended to be indefinitely reinvested in non-U.S. operations, and therefore no U.S. deferred taxes have been recorded. Taxes payable on the remittance of such earnings would be minimal.
A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31 is as follows:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Gross unrecognized tax benefits, beginning of period | $ | 4,123 | $ | 3,716 | $ | 3,081 | ||||||||||||||
| Gross increases: | ||||||||||||||||||||
Current year tax positions | 926 | 578 | 782 | |||||||||||||||||
Prior year tax positions | 583 | 10 | 97 | |||||||||||||||||
| Gross decreases: | ||||||||||||||||||||
Prior year tax positions | (6) | (121) | (212) | |||||||||||||||||
| Statute of limitations lapses and settlements | (5) | (60) | (32) | |||||||||||||||||
| Gross unrecognized tax benefits, end of period | $ | 5,621 | $ | 4,123 | $ | 3,716 | ||||||||||||||
The Company classifies net interest and penalties associated with uncertain income tax positions as income taxes within its Consolidated Statements of Operations. During the years ended December 31, 2025, 2024 and 2023, the Company recognized $104 million, $210 million and $177 million of net interest and penalties, respectively. The Company had $741 million and $637 million of accrued interest and penalties for uncertain tax positions as of December 31, 2025 and 2024, respectively. These amounts are not included in the reconciliation above. As of December 31, 2025, there were $2.8 billion of unrecognized tax benefits which, if recognized, would affect the effective tax rate.
The Company currently files income tax returns in the United States, various states and localities and non-U.S. jurisdictions. The U.S. Internal Revenue Service (IRS) has completed exams on the consolidated income tax returns for fiscal years 2016 and prior. The Company’s 2017 through 2023 tax years are under exam by the IRS, with the 2017 through 2020 tax years under the IRS’s Compliance Assurance Process. The Company is no longer subject to state income tax examinations prior to the 2015 tax year. The Company is subject to examination in non-U.S. jurisdictions for years 2015 and forward.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 12, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 8, 2017 | |
| 2015 | Feb 9, 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.