BKNG · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
Booking Holdings Inc. · 2026-08-04 · Importance 77 · Surprise 82 · In source text
The effective income-tax rate increased to 23.8% in the second quarter of 2026 from 18.9% in the second quarter of 2025. For the first six months, the effective tax rate rose to 23.4% from 18.1%, while income-tax expense increased 240.8% year over year. The 2026 tax-rate increase includes effects from U.S. interest-expense limitation rules and additional foreign-tax-credit utilization under the One Big Beautiful Bill Act. The company also recorded a $31 million six-month benefit from the March 2026 repeal of Canadian digital-services taxes related to prior years.
Key facts
- Certain provisions of the BBB Act effective in 2026 that impact our effective tax rate include U.S. interest expense limitation rules and utilization of additional foreign tax credits in calculating U.S. federal tax associated with our international earnings. source
- Income tax expense increased 191.3% for the three months ended June 30, 2026 compared to the prior year period and increased 240.8% for the six months ended June 30, 2026 compared to the prior year period. source
- Income tax expense was 23.8% of income before income taxes for the three months ended June 30, 2026 and 18.9% for the three months ended June 30, 2025. source
- Income tax expense was 23.4% of income before income taxes for the six months ended June 30, 2026 and 18.1% for the six months ended June 30, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | unclear | contingent | — | Certain provisions of the BBB Act effective in 2026 that impact our effective tax rate include U.S. interest expense limitation rules and… |
| net_income | negative | realized | — | Income tax expense increased 191.3% for the three months ended June 30, 2026 compared to the prior year period and increased 240.8% for… |