AMZN · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

AMAZON COM INC · 2026-10-30 · Importance 77 · Surprise 82

The income tax provision for the first nine months of 2026 was $33.9 billion, compared with $14.1 billion in the same 2025 period. The 2026 provision included $15.2 billion of net discrete tax expense, primarily attributable to upward adjustments to Amazon’s Anthropic investments. The 2025 provision included $354 million of net discrete tax expense, primarily related to Anthropic investment adjustments and partly offset by excess tax benefits from stock-based compensation. The 2026 discrete item materially increased reported tax expense compared with the prior-year period.

Key facts

• Amazon’s income tax provision was $33.9 billion for the nine months ended September 30, 2026, including $15.2 billion of net discrete tax expense primarily attributable to upward adjustments to Anthropic investments. source
• Amazon expects the 2026 Notice, applied retroactively to 2025, to result in a significant decrease in 2024 and 2025 cash taxes paid. source
• Amazon's cash paid for U.S. federal and state and foreign income taxes, net of refunds, was $1.1 billion in Q3 2025 and $1.3 billion in Q3 2026, and $6.8 billion and $5.3 billion for the nine months ended September 30, 2025 and 2026. source
• Amazon’s income tax provision was $14.1 billion for the nine months ended September 30, 2025, including $354 million of net discrete tax expense primarily attributable to upward adjustments to Anthropic investments, partially offset by excess stock-based compensation tax benefits. source
• Amazon is subject to tax controversies in various jurisdictions, which may assess additional income tax liabilities; developments could materially affect operating results or cash flows in the periods affected, as well as prior and subsequent periods. source