Amazon, Meta And Alphabet Less Taxes In 2025 With AI

Catenaa, Tuesday, February 10, 2026- Amazon, Meta, and Alphabet are combining to make 2025 a banner tax year for Big Tech, with AI data centers and President Trump’s One Big Beautiful Bill.

Tax bills have dropped for three companies at the center of the ongoing AI build-out, thanks to new business world deductions enacted last year by Republicans for things like depreciation and research and development costs.

Some of the new provisions offer deferrals, meaning tax bills may be higher down the road, but the changes are set to add billions to these companies’ bottom lines for now.

So far this year, Amazon, Meta Platforms, and Alphabet have filed annual reports to the government, and all reported significant drops in what they expect to pay in US federal income taxes.

Amazon’s tax bill dropped from about $9 billion in 2024 to $1.2 billion in 2025. Likewise, Meta reported a year-over-year drop from about $9.6 billion in 2024 to $2.8 billion in 2025.

The annual report from Alphabet, meanwhile, reported a tally that combined US federal and state tax totals and showed a drop from about $21.1 billion in 2024 to $13.8 billion in 2025.

These dropping tax bills for 2025 also came as all three companies reported profits are on the rise.

Amazon’s domestic profits jumped to nearly $90 billion in 2025, an over 40% increase from 2024. Alphabet’s domestic profits jumped over 32% to $143.6 billion, while Meta came in at $79.6 billion, a 20% jump.

Amazon got unwelcome notice in 2018 when it paid $0 in federal taxes. This time, it has offered a lengthy statement to explain that it is simply playing by the new rules.

The company said its varied 2025 investments included “Artificial Intelligence (AI) innovation” and totaled more than $340 billion in the US last year. It was also quick to note that many taxes deferred this year will eventually be paid, and reiterated that “this policy ultimately doesn’t change the amount of tax we pay.”

All three companies have recently reported billions in deferred taxes for 2025. Amazon reported over $11 billion, and Meta’s deferred taxes topped $18 billion. The deferred federal and state taxes for 2025 reported by Alphabet were about $8 billion.

And the actual amounts these companies are set to pay this year will be a bit higher than the 2025 bill alone because of deferrals from previous years. Amazon’s total payments this year, for example, total $2.75 billion.