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Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Vistra files a U.S. federal income tax return that includes the results of its consolidated subsidiaries. Vistra serves as the corporate parent of the Vistra consolidated group. Pursuant to applicable U.S. Department of the Treasury regulations and published guidance of the IRS, corporations that are members of a consolidated group have joint and several liability for the taxes of such group.
Income Tax (Expense) Benefit

The components of our income tax (expense) benefit are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Net income (loss) before income taxes$427 $403 $1,639 $(41)
Income tax (expense) benefit$(122)$(76)$(305)$100 
Effective tax rate28.6 %18.9 %18.6 %243.9 %

We evaluate and update our annual effective income tax rate on an interim basis based on current and forecasted earnings and tax laws. The mix and timing of our actual earnings compared to annual projections, as well as the amount of pre-tax earnings in comparison to the required discrete items, can cause interim effective tax rate fluctuations.

For the three months ended June 30, 2026, the effective rate of 28.6% was higher than the U.S. federal statutory rate of 21% due primarily to the discrete impact of mark-to-market adjustments accounted for outside of the Company's forecasted annual effective income tax rate and state income taxes. For the six months ended June 30, 2026, the effective tax rate of 18.6% was lower than the U.S. federal statutory rate of 21% due primarily to permanent differences recorded discretely related to tax deductions available for stock-based compensation, partially offset by state income taxes.

For the three months ended June 30, 2025, the effective tax rate of 18.9% was lower than the U.S. federal statutory rate of 21% due primarily to permanent differences recorded discretely related to tax deductions available for stock-based compensation. For the six months ended June 30, 2025, the effective tax rate of 243.9% was higher than the U.S. federal statutory rate of 21% due primarily to permanent differences recorded discretely related to tax deductions available for stock-based compensation, partially offset by state income taxes and the discrete impact of mark-to-market adjustments accounted for outside of the Company's forecasted annual effective income tax rate.

Income Taxes Paid

For the six months ended June 30, 2026 and 2025, we paid federal income taxes of zero and $11 million, respectively, state income taxes of $27 million and $53 million, respectively, and received state tax refunds of $2 million and zero, respectively.