Palantir Paid No Federal Tax in 2025 Despite $1.5 Billion in Earnings
Denver, Thursday, 19 February 2026.
Palantir reportedly paid zero federal income tax on $1.5 billion in 2025 earnings, leveraging research deductions to legally offset its entire liability during a period of record growth.
Analyzing the Disparity Between Income and Contribution
Palantir Technologies (PLTR) has reported $1.5 billion in U.S. income for the fiscal year 2025, yet the company paid exactly zero in federal income taxes [1]. This disclosure, found in the company’s annual financial report released this week, indicates that Palantir leveraged specific tax provisions to offset what would have been a theoretical liability of 315.000 million (approximately $330 million) at the statutory 21 percent corporate rate [1]. This marks the third consecutive year the company has remained profitable without contributing to federal income tax revenues [1].
Legislative Levers and Tax Strategy
The company’s ability to reduce its tax burden to zero is largely attributed to legislation enacted in the summer of 2025, referred to in reports as the “One Big Beautiful Bill” [1]. This policy allows corporations to immediately deduct research expenses rather than amortizing them over time, a provision Palantir utilized to reduce its taxes by over $400 million [1]. This aggressive utilization of research and development credits highlights the significant impact of recent fiscal policy changes on corporate tax contributions [1].
Regulatory Headwinds and Relocation
Beyond federal tax strategies, Palantir is actively reshaping its operational footprint in response to state-level regulations. On February 4, 2026, the company announced it is moving its headquarters from Denver to Miami [2]. While the company has not issued an official reason for the departure, its annual reports to the Securities and Exchange Commission cited concerns regarding “difficult, onerous, and costly” compliance with new artificial intelligence regulations adopted by Colorado legislators [2].