Dropbox paid $35 million in federal income tax on $508.4 million of net income

Dropbox paid $129.39 million in cash income taxes worldwide this year. The 10-K lists several places where these payments were made, but only a few are detailed separately.

The disclosure shows U.S. federal and state payments, one specific foreign country, and a general foreign category. It reveals where cash taxes were paid, but does not give a full list by country.

Country-level tax picture

Dropbox’s cash tax payments are divided between the U.S. and other countries. Most were paid in the United States, with a smaller share going to the United Kingdom and other unnamed foreign countries.

The filing lists five categories of cash income taxes paid.

• Federal: $35.0 million

• California: $19.465 million

• Other state and local: $31.869 million

• United Kingdom: $33.665 million

• Other foreign: $9.391 million

In total, Dropbox paid $129.39 million in cash income taxes.

Concentration and scale

Cash tax payments are split between the U.S. and other countries, but most of the payments were made in the United States.

U.S. jurisdictions made up $86.334 million of the total, or about two-thirds of Dropbox’s worldwide cash taxes. Foreign countries accounted for $43.056 million.

Most of the foreign tax payments went to one country.

• United Kingdom: $33.665 million

• Other foreign jurisdictions combined: $9.391 million

So, the United Kingdom accounts for most of Dropbox’s cash tax payments outside the U.S.

Year-over-year change

Dropbox’s cash flow statement shows it paid $56.9 million in cash income taxes in 2025, $61.0 million in 2024, and $68.2 million in 2023.

This shows that Dropbox’s total cash taxes have gradually decreased over the past three years.

The filing does not include a country breakdown for previous years, so it is not possible to see which countries caused the change.

Dropbox reported an effective tax rate of 17.7% for 2025.

What the numbers suggest

The data shows a moderate concentration in two places. The United States accounts for most of the cash taxes, and the United Kingdom is the primary foreign jurisdiction for these payments.

There is limited detail beyond these locations. The filing classifies the remaining international tax payments under an 'other foreign' category, so we know Dropbox paid taxes in other countries, but those countries are not named.

Dropbox’s effective tax rate is lower than the U.S. statutory rate. The filing explains that this is partly due to foreign tax effects, such as lower rates in Ireland and other countries.

The filing also identifies a legislative factor affecting 2025 tax results. The OBBBA legislation, passed in July 2025, lowered U.S. cash tax payments but increased tax expense due to changes in research expensing, GILTI, and FDII rules. The U.S. and the United Kingdom were the main foreign countries where it paid taxes.

The disclosure highlights a strong focus on U.S. tax payments but provides little detail on Dropbox’s taxes in other countries.