Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income taxes

JPMorganChase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorganChase’s expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize.

Due to the inherent complexities arising from the nature of the Firm’s businesses, and from conducting business and being taxed in a substantial number of

jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorganChase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm’s final tax-related assets and liabilities may ultimately be different from those currently reported.

For the year ended December 31, 2025, the Firm adopted the Income Taxes: Improvement to Income Tax Disclosures accounting standard, under the retrospective method. The adoption of this guidance resulted in expanded disclosures in certain tables below.

Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6 and 14 for additional information.

Effective tax rate and expense

The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate.

	2025				2024				2023
Year ended December 31, (in millions, except rates)	Income tax expense		% of income before income tax expense		Income tax expense		% of income before income tax expense		Income tax expense			% of income before income tax expense
Statutory U.S. federal tax rate	$	15,245	21.0	%	$	15,767	21.0	%	$	12,938		21.0	%
Increase/(decrease) in tax rate resulting from:
U.S. state and local income taxes, net of U.S. federal income tax benefit(a)	2,688		3.7		2,373		3.2		1,729			2.8
Foreign tax effects	1,386		1.9		1,670		2.2		1,411			2.3
Effect of changes in tax laws or rates enacted in the current period	(134)		(0.2)		—		—		—			—
Effect of cross border tax laws, net	(342)		(0.5)		(509)		(0.7)		(325)			(0.5)
Tax credits, net	(2,144)		(3.0)		(1,985)		(2.6)		(2,802)			(4.5)
Alternative energy credits	(1,135)		(1.6)		(1,125)		(1.5)		(2,170)			(3.5)
All other	(1,009)		(1.4)		(860)		(1.1)		(632)			(1.0)
Change in valuation allowances	248		0.3		—		—		—			—
Nontaxable or nondeductible items	(246)		(0.3)		(369)		(0.5)		29			—
Changes in unrecognized tax benefits	(387)		(0.5)		(3)		—		56			0.1
Other, net	(767)		(1.0)		(334)		(0.5)		(976)			(1.6)
Total income tax expense and effective tax rate	$	15,547	21.4	%	$	16,610	22.1	%	$	12,060	(b)	19.6	%	(b)

(a)For the years ended December 31, 2025 and 2024, California, New York City, and New York State made up greater than 50% of the effect of the U.S. state and local income taxes category. For the year ended December 31, 2023, New York City and California made up greater than 50% of the effect of the U.S. state and local income taxes category.

(b)Income tax expense associated with the First Republic acquisition was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm’s effective tax rate.

The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income.

Income tax expense/(benefit)
Year ended December 31, (in millions)	2025		2024		2023
Current income tax expense/(benefit)
U.S. federal	$	3,109	$	7,091	$	8,973
U.S. state and local	2,559		2,762		3,266
Non-U.S.	4,268		4,753		4,355
Total current income tax expense	9,936		14,606		16,594
Deferred income tax expense/(benefit)
U.S. federal	4,447		1,771		(3,475)
U.S. state and local	906		161		(1,094)
Non-U.S.	258		72		35
Total deferred income tax expense/(benefit)	5,611		2,004		(4,534)
Total income tax expense	$	15,547	$	16,610	$	12,060

Total income tax expense includes $629 million, $314 million and $68 million of tax benefits for the years ended December 31, 2025, 2024 and 2023, respectively, resulting from the resolution of tax audits.

Tax effect of items recorded in stockholders’ equity

The preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders’ equity, which are predominantly reflected in OCI as disclosed in Note 24. For the year ended December 31, 2024, stockholders’ equity reflected the tax effect associated with the Firm’s adoption of the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance. For the year ended December 31, 2023, stockholders’ equity reflected the tax effect associated with the Firm’s adoption of the TDR accounting guidance. Both of the respective adoptions were recognized in retained earnings. Refer to Note 1, 6 and 14 for further information.

Results from U.S. and non-U.S. earnings

The following table presents the U.S. and non-U.S. components of income before income tax expense.

Year ended December 31, (in millions)	2025		2024		2023
U.S.	$	56,184	$	59,472	$	46,868
Non-U.S.(a)	16,411		15,609		14,744
Income before income tax expense	$	72,595	$	75,081	$	61,612

(a)For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.

The Firm will recognize any U.S. income tax expense it may incur on global intangible low tax income as income tax expense in the period in which the tax is incurred.

Income taxes paid

Cash paid for income taxes, net of refunds, was $5.3 billion, $11.7 billion, and $9.9 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

The following table presents income taxes paid by respective jurisdiction in excess of 5% of total income taxes paid, net of refunds received.

Year ended December 31, (in millions)	2025		2024		2023
U.S. federal	$	(1,099)	$	3,465	$	2,797
U.S. state and local
New York State	538		NM		590
California	465		810		721
New York City	270		NM		NM
All other	459		2,065		1,432
Total U.S. state and local	1,732		2,875		2,743
Non-U.S.
United Kingdom	987		1,254		1,254
India	582		599		NM
France	459		NM		NM
Luxembourg	272		NM		NM
Germany	NM		647		NM
All other	2,376		2,875		3,114
Total Non-U.S.	4,676		5,375		4,368
Total cash income taxes paid, net	$	5,309	$	11,715	$	9,908

NM refers to not meaningful, which reflects the amount of income taxes paid during the year that does not meet the 5% disaggregation threshold.

Deferred taxes

Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management’s judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table, the net deferred tax assets are reflected in other assets on the Firm’s Consolidated balance sheets.

December 31, (in millions)	2025		2024
Deferred tax assets
Allowance for loan losses	$	7,402	$	6,117
Employee benefits	1,079		1,165
Accrued expenses and other	5,907		8,881
Depreciation and amortization	—		386
Non-U.S. operations	1,027		948
Tax attribute carryforwards	2,252		352
Gross deferred tax assets	17,667		17,849
Valuation allowance	(476)		(249)
Deferred tax assets, net of valuation allowance	$	17,191	$	17,600
Deferred tax liabilities
Depreciation and amortization	$	2,343	$	—
Mortgage servicing rights, net of hedges	1,950		1,912
Leasing transactions	4,291		2,249
Other, net	1,659		1,264
Gross deferred tax liabilities	10,243		5,425
Net deferred tax assets	$	6,948	$	12,175

JPMorganChase has recorded deferred tax assets of $2.3 billion at December 31, 2025 in connection with tax attribute carryforwards. GBC and FTC carryforwards were $1.7 billion and $257 million, respectively. State and local capital loss carryforwards were $1.2 billion, non-U.S. NOL carryforwards were $1.0 billion, U.S. federal NOL carryforwards were $193 million, and other U.S. federal tax attributes were $61 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2026 and 2036 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2028 and 2042 whereas others have an unlimited carryforward period. The state and local capital loss carryforwards will expire between 2026 and 2029. GBC carryforwards will expire in 2045 and FTC carryforwards will expire between 2030 and 2035. 

The valuation allowance at December 31, 2025 was predominantly driven by deferred tax assets associated with FTCs and non-U.S. NOLs.

Unrecognized tax benefits

At December 31, 2025, 2024 and 2023, JPMorganChase’s unrecognized tax benefits, excluding related interest expense and penalties, were $5.6 billion, $6.2 billion and $5.4 billion, respectively, of which $4.6 billion, $4.4 billion and $3.9 billion, respectively, if recognized, would reduce the annual effective tax rate. Included in the amount of unrecognized tax benefits are certain items that would not affect the effective tax rate if they were recognized in the Consolidated statements of income. These unrecognized items include the tax effect of certain temporary differences, the portion of gross state and local unrecognized tax benefits that would be offset by the benefit from associated U.S. federal income tax deductions, and the portion of gross non-U.S. unrecognized tax benefits that would have offsets in other jurisdictions. JPMorganChase evaluates the need for changes in unrecognized tax benefits based on its anticipated tax return filing positions as part of its U.S. federal, state and local, and non-U.S. tax returns. In addition, the Firm is presently under audit by a number of taxing authorities, most notably by the Internal Revenue Service, as summarized in the Tax examination status table below. The change in the unrecognized tax benefit would result in a payment or income statement recognition.

The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(in millions)	2025		2024		2023
Balance at January 1,	$	6,159	$	5,401	$	5,043
Increases based on tax positions related to the current period	609		1,721		1,440
Increases based on tax positions related to prior periods	128		92		37
Decreases based on tax positions related to prior periods	(1,268)		(907)		(1,110)
Decreases related to cash settlements with taxing authorities	(4)		(148)		(9)
Balance at December 31,	$	5,624	$	6,159	$	5,401

After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $241 million, $288 million and $229 million for the years ended December 31, 2025, 2024 and 2023, respectively.

At December 31, 2025 and 2024, in addition to the liability for unrecognized tax benefits, the Firm had accrued $1.9 billion and $1.7 billion, respectively, for income tax-related interest and penalties.

Tax examination status

JPMorganChase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of tax years that remain subject to income tax examination of JPMorganChase and its consolidated subsidiaries by significant jurisdictions as of December 31, 2025.

	Periods under examination	Status
JPMorganChase – U.S.	2011 – 2013	Field examination of amended returns; certain matters at Appellate level
JPMorganChase – U.S.	2014 - 2020	Field examination of original and amended returns; certain matters at Appellate level
JPMorganChase – New York City	2015 - 2018	Field examination
JPMorganChase – New York State	2015 - 2018	Field examination
JPMorganChase – U.K.	2017 – 2023	Field examination of certain select entities