AAPL · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Apple Inc. · 2026-07-31 · Importance 43 · Surprise 32

Provision for income taxes was $6,478 million in Q3 2026 versus $4,597 million in Q3 2025, and $21,638 million for the nine months ended June 27, 2026 versus $15,381 million YTD in 2025. The effective tax rate rose to 17.9% in Q3 2026 from 16.4% in Q3 2025 and to 17.6% YTD from 15.4% in the prior-year period. The lower-than-statutory effective rate continues to reflect a lower effective tax rate on foreign earnings, changes in unrecognized tax benefits, the U.S. federal R&D credit, and tax benefits from share-based compensation, while increases were driven by a higher effective tax rate on foreign earnings and impacts from foreign currency loss regulations and prior quarter revaluations. The nine-month tax provision of $21,638 million exceeds the materiality threshold and reflects these jurisdictional and remeasurement impacts.