Amazon's US corporate tax rate drops significantly in 2025 due to new GOP tax laws

Feb 6, 2026, 6:43:38 PM UTC(3 hours ago)

Impact: Medium

Affected Assets

Amazon's US corporate income taxes were reduced by more than half in 2025, despite the company's pretax US profit rising by 44.5% to $89.5 billion.
The tax reduction is attributed to two key changes in a tax law signed by President Donald Trump in July 2025, which incentivized capital investment.
A major factor is the immediate deduction allowed for capital investments, which benefits Amazon's massive spending on data centers and AI infrastructure.
Amazon spent an estimated $340 billion on operating costs and capital investments for US data centers in 2025, much of which qualified for the new deductions.
The company stated that Congress made the tax code changes to encourage greater investment in the American economy, innovation, and workers, areas where Amazon claims to be a leader.

$AMZN - AMAZON'S TAX BILL PLUNGES AFTER GOP TAX CUTS: POLITICO