Published: May 25, 2013

Across U.S. Companies, Tax Rates Vary Greatly

Last week, in a Congressional hearing, Apple got grilled for its low-tax strategy. But not every business can copy that approach. Here is a look at what S.&P. 500 companies paid in corporate income taxes — federal, state, local and foreign — from 2007 to 2012, according to S&P Capital IQ. Related Article »

About one of every seven companies had an effective tax rate lower than 10 percent, including Amazon at 6 percent and Verizon at 9 percent. Nine companies paid no taxes at all.

Each circle represents a company, sized by its market capitalization. The largest is Apple, at more than $400 billion, with an effective tax rate of 14 percent.

Combining earnings and taxes for all S.&P. 500 companies gives an effective tax rate of 29.1 percent. But rates vary widely by industry.

Three big energy firms paid the most taxes in absolute terms: Exxon $146 billion; Chevron $85 billion; and ConocoPhillips $58 billion.

Effective tax rates cannot be computed for several dozen companies because they lost money over the six-year period. For example, A.I.G. lost $83 billion while paying $8 billion in taxes. These companies are still included in overall tax rate calculations.

Note: For companies with positive earnings over the six-year period, the effective tax rate is defined as the sum of cash taxes paid divided by the sum of earnings before taxes including unusual items. Market capitalization is as of April 8, 2013.

By MIKE BOSTOCK, MATTHEW ERICSON, DAVID LEONHARDT and BILL MARSH

Source: S&P Capital IQ