People assign less punishment to individuals who inflict harm collectively, compared to those who do so alone. We show that this arises from judgments of diminished individual causal responsibility in the collective cases. In Experiment 1, participants (N = 1002) assigned less punishment to individuals involved in collective actions leading to intentional and accidental deaths, but not failed attempts, emphasizing that harmful outcomes, but not malicious intentions, were necessary and sufficient for the diffusion of punishment. Experiments 2.a compared the diffusion of punishment for harmful actions with ‘victimless’ purity violations (e.g., eating a dead human’s flesh as a group; N = 752). In victimless cases, where the question of causal responsibility for harm does not arise, diffusion of collective responsibility was greatly reduced—an outcome replicated in Experiment 2.b (N = 479). Together, the results are consistent with discounting in causal attribution as the underlying mechanism of reduction in proposed punishment for collective harmful actions.