Amazon’s Tax Bill Plunges After GOP Tax Cuts

Republicans’ tax cuts shaved billions off Amazon’s tax bill, new government filings show.

The company estimates it invested $340 billion in the US last year. (Photo: Amazon) 

The company said it ran a $1.2 billion tax bill last year, down from $9 billion the previous year, even as its profits jumped 45 percent to nearly $90 billion, Brian Faler reported for Politico.

That’s largely because of generous new depreciation breaks GOP lawmakers included in their One Big Beautiful Bill — something particularly important to Amazon, which, in addition to maintaining a vast infrastructure for its delivery business, has been spending billions to build artificial intelligence data centers.

Also helping, though less significant, are the law’s expanded breaks for businesses’ research and development expenses.

The company has long been criticized by Democrats for paying little in taxes, and it appeared to be bracing for criticism in the wake of the report to the Securities and Exchange Commission (SEC).

“Last year, Congress made changes to the tax code to encourage greater investment in the American economy, its innovation, and its workers — all areas where Amazon has long been a leader,” the company said.

“Our tax bill this year reflects those changes by Congress.”

The company estimates it invested $340 billion in the US last year.

Under financial accounting rules, Amazon said its effective tax rate was 19.6 percent in 2025, though that figure doesn’t include the effect of increased depreciation write-offs because those are essentially timing shifts that allow companies to take more deductions now in exchange for fewer in the future.

“Deducting our costs more quickly provides a short-run benefit, but this policy ultimately doesn’t change the amount of tax we pay,” Amazon said. “It just changes the timing of our tax payments.”