Using a large sample of 2,077 U.S. firms from 2003 to 2021, we investigate how firms' carbon emissions influence their tax avoidance strategies. Our findings reveal that firms with higher carbon emissions engage in less tax avoidance, a causal relationship confirmed through instrumental variables and exogenous shock tests. The primary driver of this behavior is reputational concerns, which stem from multiple stakeholders including supply chain partners, executives, institutional investors, and debtholders. These stakeholders could view reputation damage as a significant source of risk, prompting firms with substantial carbon emissions to reduce tax avoidance to maintain their corporate image. Our results suggest that the desire to enhance and protect corporate reputation leads high carbon-emitting firms to adopt less aggressive tax strategies.