AAPL · 10-Q · 2026Q1 · Full report

Income Tax Rate Changes

Apple Inc. · 2026-05-01 · Importance 38 · Surprise 58 · Matches filing data

The Company reports an effective tax rate of 17.5% for the second quarter of 2026 (up from 15.5% in the prior-year quarter) and attributes lower-than-statutory rates in the period to lower effective rates on foreign earnings, the U.S. federal R&D credit and a change in valuation allowance, partially offset by state income taxes. For the first six months of 2026 the effective tax rate was higher than the comparable 2025 period, driven by changes in unrecognized tax benefits, the impact of foreign currency loss regulations issued by the U.S. Department of the Treasury in December 2024, and tax impacts from foreign currency revaluations related to the State Aid Decision in early 2025. Provision for income taxes was $15,160 million for the six months ended March 28, 2026, a material amount, and the company explains these items as drivers of the year-over-year rate change. These tax and regulatory items are identified as affecting the company’s effective tax rate for fiscal 2026.

Key facts

• Provision for income taxes for the six months ended March 28, 2026 was $15,160 million compared to $10,784 million for the six months ended March 29, 2025, and the effective tax rate was 17.5% compared to 15.0%. source
• Provision for income taxes for the three months ended March 28, 2026 was $6,255 million compared to $4,530 million for the three months ended March 29, 2025, and the effective tax rate was 17.5% compared to 15.5%. source
• The Company’s effective tax rate for the first six months of 2026 was higher compared to the same period in 2025 primarily due to the impact of changes in unrecognized tax benefits, the impact of foreign currency loss regulations issued by the U.S. Department of the Treasury in December 2024, and the tax impact from foreign currency revaluations in the first quarter of 2025 related to the State Aid Decision. source
• The Company’s effective tax rate for Q2 2026 was higher compared to Q2 2025 primarily due to the impact of changes in unrecognized tax benefits, partially offset by a change in valuation allowance. source
• The Company’s effective tax rate for Q2 2026 was lower than the statutory federal income tax rate primarily due to a lower effective tax rate on foreign earnings, the impact of the U.S. federal R&D credit, and a change in valuation allowance, partially offset by state income taxes. source
• The Company’s effective tax rate for the first six months of 2026 was lower than the statutory federal income tax rate primarily due to a lower effective tax rate on foreign earnings, the impact of the U.S. federal R&D credit, and tax benefits from share-based compensation, partially offset by state income taxes. source

Impact estimates