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Amazon Inc. Paid Zero in Federal Taxes in 2017, Gets $789 Million Windfall from New Tax Law At a time when Amazon is pitting state and local governments against each other in a Hunger Games-style contest over the location of the company's new headquarters, the company's new disclosure should cause some consternation among the state officials who have been most willing to pony up billions of dollars in tax incentives. In each of these states, Amazon's sales tax dodging has pushed brick and mortar retailers to the brink of extinction, and its spectacular federal corporate tax avoidance is very likely mirrored at the state level. For states contemplating tax incentives for Amazon, the salient question is: what do you give a tax avoider who already has everything?

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