Marathon Petroleum Corp

For the period ended Dec 31, 2025. Filed Feb 26, 2026.

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FY2025 · Filed Feb 26, 2026

MPC$389.55-0.1%Stored close · as of Nov 10, 2026

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Contents

12. Income Taxes

Income Taxes

(Millions of dollars)	2025	2024	2023
Income (loss) from operations before income taxes:
Domestic	$6,958	$5,964	$13,875
Foreign	57	(7)	114
Total	$7,015	$5,957	$13,989
Provision (benefit) for income taxes:
Current:
Federal	$706	$862	$2,359
State and local	129	144	475
Foreign	20	8	11
Total current	855	1,014	2,845
Deferred:
Federal	255	(90)	18
State and local	25	(33)	(46)
Foreign	2	(1)	—
Total deferred	282	(124)	(28)
Total	$1,137	$890	$2,817

A reconciliation of the federal statutory income tax rate to the effective tax rate applied to income from before income taxes follows:

	2025		2024		2023
(Millions of dollars)	Amount	%	Amount	%	Amount	%
Federal statutory rate	$1,473	21.0%	$1,251	21.0%	$2,937	21.0%
State and local income taxes, net of federal income tax effects(a)	128	1.8	91	1.5	338	2.4
Nontaxable or nondeductible items:
Noncontrolling interests	(385)	(5.5)	(341)	(5.7)	(314)	(2.2)
Other	24	0.3	(44)	(0.8)	(30)	(0.3)
Tax credits	(84)	(1.2)	(42)	(0.7)	—	—
Other adjustments	(19)	(0.2)	(25)	(0.4)	(114)	(0.8)
Effective tax rate applied to income before income taxes	$1,137	16.2%	$890	14.9%	$2,817	20.1%

(a)State taxes in California, Texas and Kentucky make up the majority of the tax effect of this category.

Deferred tax assets and liabilities resulted from the following:

	December 31,
(Millions of dollars)	2025	2024
Deferred tax assets:
Employee benefits	$560	$558
Environmental remediation	80	81
Finance lease obligations	409	433
Operating lease liabilities	314	243
Net operating loss carryforwards	32	39
Tax credit carryforwards	20	22
Goodwill and other intangibles	84	75
Other	115	95
Total deferred tax assets	1,614	1,546
Valuation allowance	(9)	(51)
Total net deferred tax assets	1,605	1,495
Deferred tax liabilities:
Property, plant and equipment	2,441	2,584
Inventories	845	672
Investments in subsidiaries and affiliates	3,957	3,742
Right of use assets	324	246
Other	19	20
Total deferred tax liabilities	7,586	7,264
Net deferred tax liabilities	$5,981	$5,769

Net deferred tax liabilities were classified in the consolidated balance sheets as follows:

	December 31,
(Millions of dollars)	2025	2024
Assets:
Other noncurrent assets	$3	$2
Liabilities:
Deferred income taxes	5,984	5,771
Net deferred tax liabilities	$5,981	$5,769

At December 31, 2025 and 2024, federal operating loss carryforwards were $2 million and $3 million, respectively, which includes a mix of indefinite carryforward ability and expiration periods ranging from 2032 through 2034. As of December 31, 2025 and 2024, state and local operating loss and tax credit carryforwards were $38 million and $42 million, respectively, which includes a mix of indefinite carryforward ability and expiration periods ranging from 2029 through 2045. At December 31, 2025 and 2024, foreign operating loss carryforwards were $12 million and $16 million, respectively, which includes expiration periods ranging from 2031 through 2043.

As of December 31, 2025 and 2024, $9 million and $51 million of valuation allowances have been recorded related to income taxes, related to realizability of foreign tax operating losses, state tax net operating losses and credits, and related deferred tax assets.

MPC is continuously undergoing examination of its U.S. federal income tax returns by the Internal Revenue Service (“IRS”). Since 2012, we have continued to participate in the Compliance Assurance Process (“CAP”). CAP is a real-time audit of the U.S. federal income tax return that allows the IRS, working in conjunction with MPC, to determine tax return compliance with the U.S. federal tax law prior to filing the return. This program provides us with greater certainty about our tax liability for years under examination by the IRS. MPLX and its subsidiaries are undergoing examination of its U.S. federal income tax returns by the IRS for the tax years 2019 through 2022. We do not believe the eventual outcome of such audits will have a material impact on our financial statements as of December 31, 2025.

Further, we are routinely involved in U.S. state income tax audits. We believe all other audits will be resolved with the amounts provided for these liabilities. As of December 31, 2025, we have various state and local income tax returns subject to examination for years 2016 through 2023, depending on jurisdiction.

The following table summarizes the activity in unrecognized tax benefits:

(Millions of dollars)	2025	2024	2023
January 1 balance	$27	$38	$57
Additions for tax positions of current year	80	—	—
Additions for tax positions of prior years	65	—	8
Reductions for tax positions of prior years	(7)	(5)	(6)
Settlements	(2)	(6)	(20)
Statute of limitations	—	—	(1)
December 31 balance	$163	$27	$38

If the unrecognized tax benefits as of December 31, 2025 were recognized, $82 million would affect our effective income tax rate.

Interest and penalties related to income taxes are recorded as part of the provision for income taxes.

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