Keep Factually independent
Whether you agree or disagree with our analysis, these conversations matter for democracy. We don't take money from political groups - even a $5 donation helps us keep it that way.
What percentage of US tax revenue comes from corporate taxes versus tariffs in 2025?
Executive Summary
Corporate income taxes have historically produced substantially more federal revenue than tariffs; average corporate receipts were about $342 billion per year from FY2018–FY2023, while tariff/customs receipts reported for FY2025 surged into the $165–$195 billion range. Available materials in the packet do not supply a single authoritative FY2025 federal revenue total or a verified FY2025 corporate‑tax receipts line, so an exact percentage split of total U.S. tax revenue between corporate taxes and tariffs in 2025 cannot be calculated from these sources alone [1] [2] [3].
1. A startling tariff spike, but numbers conflict — what changed?
Analysts in the provided materials document a sharp increase in tariff receipts in FY2025, with one study reporting tariff revenue at $195 billion (a roughly 150% increase over FY2024) and contemporaneous customs data showing $165.2 billion through August of FY2025, a 136.7% year‑over‑year rise. These figures indicate tariff receipts rose sharply in 2025, becoming a much larger funding source than in prior years when customs duties composed a small single‑digit share of total revenue. The sources highlight legal and policy drivers behind the surge and caution about measurement timing — some tallies are full‑year estimates while others reflect partial‑year collections [2] [3].
2. Corporate tax receipts: steady historically but 2025 specifics missing
The packet includes a robust historical baseline: the Bipartisan Policy Center reports corporate tax receipts averaged about $342 billion annually from FY2018–FY2023, roughly 1.39% of GDP during that span. That baseline shows corporate income taxes have been a material, recurring federal revenue source, typically larger than tariff collections in recent years. However, the provided files do not contain a definitive FY2025 corporate‑tax receipts number or an official FY2025 federal revenue total, which prevents a direct, precise percentage comparison between corporate taxes and tariffs for 2025 [1].
3. Why you can’t produce an exact 2025 percentage from these documents
Calculating the share of total federal revenue requires two validated inputs: the total federal revenue for FY2025 and each revenue category’s actual FY2025 receipts. The materials supply plausible FY2025 tariff totals (partial or estimated), and a historical corporate average, but they lack a verified FY2025 corporate‑tax receipts figure and a consolidated FY2025 total revenue line. Sources explicitly flag missing or incomplete datasets and differing reference periods, meaning any percentage offered without additional, authoritative data would be an extrapolation beyond these documents [4] [5] [6].
4. A reasonable, bounded comparison using available figures
Using only the packet figures, a bounded statement is possible: if corporate receipts in FY2025 were near their recent average (~$342 billion) and tariffs were in the reported $165–$195 billion band, corporate taxes would have contributed roughly 1.7–2.1 times as much revenue as tariffs in 2025. That rough ratio implies corporate taxes remained the larger source, but it is conditional on corporate receipts actually approximating the historical average and on using the higher tariff estimates as full‑year numbers — assumptions not confirmed within the provided sources [1] [2] [3].
5. Competing narratives and possible agendas to watch
The tariff surge figures come from analyses that emphasize budget impact and legal uncertainty; they may be cited by policymakers arguing that tariffs are now a significant revenue lever or by opponents warning of inflationary effects on consumers. The historical corporate figures stem from a nonpartisan policy center framing long‑run revenue trends. Each source has an interpretive frame — one highlights a sudden policy‑driven spike, the other contextualizes corporate receipts over multiple years — and both lack the single reconciled FY2025 revenue table needed for a definitive percentage split [2] [1].
6. Bottom line and what’s needed for a definitive answer
From the provided evidence, corporate income taxes have historically outpaced tariff receipts and, unless FY2025 corporate receipts fell dramatically, they likely remained larger than tariffs in 2025. However, the packet does not contain the authoritative FY2025 corporate tax receipts or the federal total revenue number required to state precise percentage shares of U.S. tax revenue for 2025. To settle the question conclusively, consult an official FY2025 federal receipts breakdown (e.g., Treasury or OMB final accounts) that lists both “corporate income taxes” and “customs duties/tariffs” as line items [1] [3].