Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Components of Deferred tax Assets and Liabilities

The following table shows the significant components of our deferred tax liabilities and assets as of December 31 (in millions):


	2025		2024
Deferred Tax Liabilities
Book/tax basis difference due to depreciation	$	1,439.4	$	1,327.9
Right-of-use assets	33.7		41.3
Investments in affiliated companies	3.8		4.5
Lease accounting	17.4		18.0
Intangible amortization	1.7		1.5
Other	5.3		4.9
Total deferred tax liabilities	$	1,501.3	$	1,398.1
Deferred Tax Assets
Lease liability	$	37.9	$	44.4
Federal net operating loss	140.8		82.6
Foreign tax credit	0.8		0.8
Valuation allowance on foreign tax credit	(0.8)		(0.8)
Federal interest limitation carryforward	50.5		72.5
State net operating loss	43.3		37.4
Valuation allowance on state net operating loss	(26.9)		(20.4)
State interest limitation carryforward	7.7		11.4
Foreign net operating loss	2.1		4.4
Accruals not currently deductible for tax purposes	37.8		32.3
Allowance for losses	1.2		1.3
Pension and post-retirement benefits	1.9		2.1
Other	9.3		2.8
Total deferred tax assets	$	305.6	$	270.8
Net deferred tax liabilities	$	1,195.7	$	1,127.3

Income before income taxes

The following table shows the components of income before income taxes, excluding affiliates, for the years ended December 31 (in millions):


	2025		2024		2023
Income before Income Taxes
Domestic	$	58.9	$	80.6	$	82.9
Foreign	220.2		180.8		162.6
Total	$	279.1	$	261.4	$	245.5

Consolidated federal income taxes

The following table shows income taxes, excluding domestic and foreign affiliates, for the years ended December 31 (in millions):


	2025		2024		2023
Income Tax Expense
Current
Domestic:
Federal	$	(1.9)	$	—	$	2.9
State and local	0.1		0.7		0.2
	$	(1.8)	$	0.7	$	3.1
Foreign	11.7		13.5		17.3
Total current	$	9.9	$	14.2	$	20.4
Deferred
Domestic:
Federal	$	16.2	$	18.4	$	13.5
State and local	5.9		(6.4)		(1.8)
	$	22.1	$	12.0	$	11.7
Foreign	31.1		33.8		26.6
Total deferred	$	53.2	$	45.8	$	38.3
Income taxes	$	63.1	$	60.0	$	58.7

Summary of reasons for difference between GATX's effective income tax rate and federal statutory income tax

The following table is a reconciliation between the federal statutory income tax rate and our effective income tax rate for the years ended December 31 (in millions):


	2025				2024				2023
Income taxes at federal statutory rate	$	58.6	21.0	%	$	54.9	21.0	%	$	51.6	21.0	%
Adjust for effect of:

Foreign tax effects:

Germany
Foreign tax rate change impact	(13.3)		(4.8)	%	—		—	%	—		—	%
Other	3.7		1.3	%	4.2		1.6	%	4.0		1.6	%

Other foreign jurisdictions	6.6		2.4	%	5.1		2.0	%	5.6		2.3	%
Foreign tax effects	(3.0)		(1.1)	%	9.3		3.6	%	9.6		3.9	%
Nontaxable or nondeductible items:
Nondeductible officers compensation	4.3		1.5	%	2.8		1.1	%	2.3		0.9	%
Share-based compensation	(3.2)		(1.1)	%	(2.2)		(0.8)	%	(1.7)		(0.7)	%
Other	0.7		0.2	%	—		—	%	(1.7)		(0.7)	%




State and local income tax, net of federal (national) income tax effect (1)	6.0		2.2	%	(4.8)		(1.9)	%	(1.6)		(0.6)	%
Changes in unrecognized tax benefits	(0.3)		(0.1)	%	—		—	%	0.2		0.1	%

Income taxes at effective income tax rate	$	63.1	22.6	%	$	60.0	23.0	%	$	58.7	23.9	%

_______

(1) During the year ended 2025, the following states represent the majority of income tax reconciling items: Illinois, California, Texas, Georgia, Kansas and Minnesota. In 2024, the states included Illinois, California, Georgia, Texas, Iowa and Kansas. In 2023, the states included Illinois, Texas, California, Georgia, Iowa and Louisiana.

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

The following table shows income taxes paid, for the years ended December 31 (in millions):


	2025		2024		2023
Income Taxes Paid
Domestic:
Federal	$	(1.9)	$	—	$	2.9
State (1)	0.1		0.7		0.2
	$	(1.8)	$	0.7	$	3.1
Foreign:
Germany	$	6.9	$	8.8	$	6.0
Canada	0.3		(1.2)		(0.6)
Poland	5.3		6.8		4.0
Mexico	1.5		1.4		1.2
Austria	(0.2)		2.3		1.6
Netherlands	1.2		1.5		1.1
India	1.1		1.8		0.3
Other	0.2		0.9		0.6
	$	16.3	$	22.3	$	14.2
Total	$	14.5	$	23.0	$	17.3

_______

(1) During the years ended December 31, 2025, 2024 and 2023, we did not make tax payments to any states that exceeded more than 5% of total tax payments.