ADP · 10-K · 2026A · Full report
Income Tax Rate Changes
AUTOMATIC DATA PROCESSING INC · 2026-08-05 · Importance 36 · Surprise 14
ADP’s effective tax rate decreased to 23.0% in fiscal 2026 from 23.2% in fiscal 2025. The 20-basis-point reduction reflected lower uncertain tax positions and higher tax credits. A lower benefit from prior-year tax-liability adjustments and a lower excess tax benefit from stock-based compensation partially offset the reduction. The $1,316.8 million fiscal 2026 income-tax provision increased from $1,230.4 million as pretax earnings increased.