Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Our sources of Income before income taxes were as follows:

Income tax expense is summarized as follows:

The following table summarizes income tax expense and the calculation of the effective income tax rate:


	Year Ended December 31, 2025				Year Ended December 31, 2024				Year Ended December 31, 2023
(in millions, except percentages)	Income Tax Expense		Effective Tax Rate		Income Tax Expense		Effective Tax Rate		Income Tax Expense		Effective Tax Rate
Pre-tax income	$	14,281			$	14,712			$	10,999
Income tax expense	3,289				3,373				2,682
Effective income tax rate			23.0	%			22.9	%			24.4	%

US federal statutory income tax rate	2,999		21.0	%	3,089		21.0	%	2,310		21.0	%
Domestic federal
Tax credits	(286)		(2.0)	%	(141)		(1.0)	%	(130)		(1.2)	%
Non-taxable or non-deductible items	(34)		(0.2)	%	35		0.2	%	(5)		—	%
Cross-border tax laws	55		0.3	%	21		0.2	%	19		0.2	%

Changes in valuation allowances	(1)		—	%	(14)		(0.1)	%	(12)		(0.1)	%
Other	15		0.1	%	(26)		(0.2)	%	(6)		—	%
Domestic state & local income tax, net of federal income tax effect	421		3.0	%	451		3.1	%	422		3.8	%
Foreign tax effects	67		0.5	%	26		0.2	%	26		0.2	%
Changes in unrecognized tax benefits	53		0.3	%	(68)		(0.5)	%	58		0.5	%

Effective income tax rate	$	3,289	23.0	%	$	3,373	22.9	%	$	2,682	24.4	%

Significant components of deferred income tax assets and liabilities, tax effected, are as follows:


(in millions)	December 31, 2025		December 31, 2024
Deferred tax assets
Loss carryforwards	$	2,537	$	3,844

Lease liabilities	7,814		7,781

Reserves and accruals	1,160		958


Other	2,932		3,959
Deferred tax assets, gross	14,443		16,542
Valuation allowance	(240)		(259)
Deferred tax assets, net	14,203		16,283
Deferred tax liabilities
Spectrum licenses	20,105		19,527
Property and equipment	6,399		5,874
Lease right-of-use assets	6,543		6,508

Other	739		1,074
Total deferred tax liabilities	33,786		32,983
Net deferred tax liabilities	$	19,583	$	16,700

Classified on the consolidated balance sheets as:
Deferred tax liabilities	$	19,583	$	16,700

A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:


	Year Ended December 31,
(in millions)	2025		2024		2023
Unrecognized tax benefits, beginning of year	$	1,470	$	1,477	$	1,254
Gross increases to tax positions in prior periods	70		140		19
Gross decreases to tax positions in prior periods	(147)		(201)		(39)
Gross increases to current period tax positions	166		132		256

Gross decreases due to settlements with taxing authorities	(62)		(11)		—
Gross decreases due to statute of limitations lapse	(18)		(67)		(13)
Unrecognized tax benefits, end of year	$	1,479	$	1,470	$	1,477

Income taxes paid, net of refunds received, were as follows:

NM - Not meaningful, the amount of income taxes paid does not meet the 5% disaggregation threshold for reporting.

The following table summarizes T-Mobile’s supplemental cash flow information:


	Year Ended December 31,
(in millions)		2025		2024		2023
Interest payments, net of amounts capitalized		$	3,882	$	3,683	$	3,546
Operating lease payments		4,764		5,162		5,062
Income tax payments, net of refunds received		451		179		108
Non-cash investing and financing activities

Non-cash beneficial interest obtained in exchange for securitized receivables		$	—	$	2,421	$	3,990

Change in accounts payable and accrued liabilities for purchases of property and equipment		(227)		105		(860)




Operating lease right-of-use assets obtained in exchange for lease obligations		2,728		1,741		2,141
Financing lease right-of-use assets obtained in exchange for lease obligations		1,232		1,222		1,224
Deferred consideration related to the Ka’ena Acquisition		—		218		—
Debt assumed in the UScellular Acquisition		1,653		—		—