AMP · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

AMERIPRISE FINANCIAL INC · 2026-08-04 · Importance 20 · Surprise 22

Ameriprise’s effective tax rate increased to 22.8% in the second quarter of 2026 from 21.6% in the second quarter of 2025. The six-month effective tax rate increased to 21.6% from 19.4%, reflecting higher pretax income, the related impact on tax-preferred items, and a lower benefit from incentive compensation. State income taxes, net of the federal tax effect, were the primary factor increasing the quarterly and year-to-date rates in 2026. The company reported that the OECD Pillar Two rules and the One Big Beautiful Bill Act had no material impact on its consolidated financial statements as of June 30, 2026.

Key facts

• As of June 30, 2026, the Company does not expect to be liable for corporate alternative minimum tax (CAMT) in 2026 based on current estimates. source
• Based on analysis as of June 30, 2026, management believes it is more likely than not that the Company will not realize certain state net operating losses and foreign net operating losses; therefore, a valuation allowance has been established. source
• The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025 and the corporate tax law changes resulting from OBBBA did not have a material impact to the Company’s consolidated financial statements as of June 30, 2026. source
• The IRS is currently auditing the Company’s U.S. income tax returns for 2021 through 2023. source
• The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2018 through 2024. source
• The Company’s effective tax rate was 22.8% for the three months ended June 30, 2026 and 21.6% for the three months ended June 30, 2025. source
• The Company’s effective tax rate was 21.6% for the six months ended June 30, 2026 and 19.4% for the six months ended June 30, 2025. source
• The increase in the effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily due to an increase in state income taxes, net of federal income tax effect. source