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Could you tell if it is correct and natural to say take off $25 meaning make a discount of $25? For example:

We ask $200 for that job, but I can take off $25 and bring that to $175.

If it's not natural, would you please tell me what you would say?

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Colloquially, "taking off $25" is perfectly fine to use! In a more formal context, for example, you might hear "subtract $25 from". Otherwise, all good.

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In the UK, you would be more likely to say "I can knock off $25" or more formally "I can give you a $25 discount". Giving sounds much more positive than taking off. And no businessperson would ever say "subtract $25 from".

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