Tesla paid $28 million in federal income tax on $4.77 billion of domestic income
In 2025, Tesla paid $1.23 billion in worldwide cash income taxes. The filing identified China, California, other states, and other countries, but did not specify which countries were included in the 'other countries' category.
The filing provides limited geographic detail, separating federal, state, China, and other foreign taxes, but does not offer a complete country-by-country breakdown.
Country-level tax picture
Most of Tesla’s cash tax payments were made to foreign jurisdictions, with China being the only foreign country specifically identified.
Federal: $28 million
California: $86 million
Other states: $65 million
China: $751 million
Other countries: $302 million
Concentration and scale
China represented approximately 61% of total cash income taxes paid, while federal income tax comprised about 2%.
Foreign taxes totaled $1.05 billion, accounting for roughly 85% of total cash income taxes. U.S. federal and state payments amounted to $179 million.
Year-over-year change
Total cash income taxes decreased from $1.33 billion in 2024 to $1.23 billion in 2025. The filing did not provide a country-level cash tax table for 2024.
Tesla’s effective tax rate increased from 20% to 27%, attributed to changes in jurisdictional earnings mix, reduced foreign income deductions under the OBBBA, and remeasurement related to NCTI under the OBBBA.
What the numbers suggest
In 2025, most of Tesla’s cash tax payments were outside the federal category, with China accounting for the majority of disclosed country-level taxes. The 'other countries' category leaves the remaining foreign tax details unclear.
The filing identifies the OBBBA as a non-routine factor influencing taxes, affecting foreign income deductions and NCTI-related remeasurement. No country-level detail was provided for this change.
Closing takeaway
Tesla’s disclosure highlights a tax profile dominated by China and other foreign payments, with a relatively small federal cash tax component. In summary, Tesla paid $28 million in federal cash income tax, while China accounted for the majority of disclosed cash taxes.