AFL · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

AFLAC INC · 2026-11-05 · Importance 39 · Surprise 50

The combined U.S. and Japanese effective tax rate was 39.6% for the third quarter of 2026, compared with 17.8% in the third quarter of 2025. For the first nine months, the effective rate was 21.1% in 2026 versus 23.4% in 2025. The higher third-quarter rate primarily reflected a $51 million tax capital loss valuation allowance against deferred tax assets associated with tax capital loss carryforwards.

Key facts

• Aflac Incorporated’s Q3 2026 net earnings included a $51 million tax capital loss valuation allowance against deferred tax assets associated with tax capital loss carryforwards. source
• Aflac Incorporated’s first-nine-month 2026 net earnings included a $51 million tax capital loss valuation allowance against deferred tax assets associated with tax capital loss carryforwards. source
• Aflac Incorporated’s combined U.S. and Japanese effective income tax rate was 39.6% for Q3 2026, compared with 17.8% for Q3 2025. source
• Aflac Incorporated’s combined U.S. and Japanese effective income tax rate was 21.1% for the first nine months of 2026, compared with 23.4% for the same period in 2025. source
• Aflac Incorporated’s effective tax rate differed from the U.S. statutory rate primarily because of the Q3 2026 tax capital loss valuation allowance on deferred tax assets associated with tax capital loss carryforwards. source