Block paid $35 million in federal income tax on $1.69 billion of net income
Block reported $129.4 million in total cash income taxes paid for 2025. The filing identifies federal, state, and selected foreign jurisdictions where cash taxes were paid. It provides named country detail for the United Kingdom and aggregates the remainder of foreign taxes into a single line. The disclosure offers partial geographic visibility rather than a full country breakdown.
Country-level tax picture
Block’s 2025 cash taxes were allocated across U.S. federal, state, and limited foreign jurisdictions. All other foreign payments were combined into a single group.
Cash income taxes paid for 2025 were:
Federal: $35.0 million
California: $19.5 million
Other state and local: $31.9 million
United Kingdom: $33.7 million
Other foreign: $9.4 million
Total cash income taxes paid: $129.4 million
The company did not disclose cash taxes for any other specific foreign country.
Concentration and scale
Cash taxes were weighted toward the United States. Federal and state payments totaled about $86.3 million. That represents roughly two-thirds of total cash taxes for the year.
Foreign cash taxes were about $43.1 million. The United Kingdom alone accounted for more than three-quarters of disclosed foreign payments. Other foreign jurisdictions were grouped into a single line and represented a smaller share.
The federal portion, at $35 million, was about 27% of total cash taxes. State and local payments collectively exceeded federal cash taxes. The pattern reflects a dispersed U.S. state footprint and a limited number of named foreign jurisdictions.
Year-over-year change
Cash income taxes paid declined in 2025. The company paid $129.4 million in 2025, compared with $270.3 million in 2024.
On an income statement basis, 2025 included a provision for income taxes of $385.7 million on $1.69 billion of income before income tax. In 2024, the company recorded a tax benefit of $1.5 billion.
The 2024 results included $1.9 billion in income tax benefits tied to the release of valuation allowances and internal legal entity restructuring. The 2025 filing does not reflect a comparable benefit of that scale.
The company continued to list the United Kingdom as a country in its country-level cash tax disclosure. No additional foreign countries were added in 2025.
What the numbers suggest
The 2025 cash tax profile indicates moderate geographic concentration. The majority of cash taxes were paid in the United States, while the United Kingdom is the only other listed foreign jurisdiction. Other foreign payments are combined, which limits understanding of the full geographic exposure.
The effective tax rate on a reported basis in 2025 was roughly 23% when measured against income before tax. That stands in contrast to 2024, when a large tax benefit drove the reported rate sharply negative. The shift reflects a return to a more typical provision pattern after a prior year dominated by one-time items.
The primary non-routine driver disclosed in the filing relates to legislative and restructuring events. In 2024, the company recognized $1.9 billion in one-time income tax benefits from releasing valuation allowances and recognizing deferred tax assets as part of an internal restructuring.
In 2025, the company also noted a current tax benefit tied in part to the One Big Beautiful Bill Act, which changed the treatment of certain research and development expenses under IRC §174. The filing does not identify any additional non-routine external drivers for 2025.
Closing takeaway
Block’s 2025 cash taxes were primarily U.S.-based, with limited country-level foreign detail beyond the United Kingdom. After a 2024 year shaped by large one-time tax benefits, 2025 reflects a more normalized tax profile anchored in U.S. operations.