BKNG · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Booking Holdings Inc. · 2026-11-03 · Importance 30 · Surprise 40

The effective tax rate for the nine months ended September 30, 2026 was 22.1%, up from 20.0% in the comparable 2025 period, a 2.1-percentage-point increase. The company attributed the higher 2026 rate primarily to a valuation allowance for U.S. federal interest-expense carryforwards, higher discrete tax expenses, and higher unrecognized tax benefits, partly offset by lower U.S. federal tax associated with international earnings. The third-quarter effective rate was 20.6%, compared with 20.8% in 2025. A majority of income was reported in the Netherlands, where qualifying Booking.com earnings benefited from the Innovation Box Tax treatment.

Key facts

• Booking Holdings Inc.'s effective tax rates for the three and nine months ended September 30, 2026 were 20.6% and 22.1%, compared with 20.8% and 20.0% for the corresponding 2025 periods. source
• Booking Holdings Inc.'s 2026 effective tax rate for the three months ended September 30 was lower than in 2025, primarily due to lower U.S. federal tax on international earnings and lower discrete tax expenses, partly offset by a valuation allowance and higher nondeductible expenses. source
• Booking Holdings Inc.'s 2026 effective tax rate for the nine months ended September 30 was higher than in 2025, primarily due to an interest-expense carryforward valuation allowance, higher discrete tax expenses, and higher unrecognized tax benefits, partly offset by lower U.S. federal tax on international earnings. source
• A portion of Booking.com's earnings qualified for Netherlands Innovation Box Tax treatment during the three and nine months ended September 30, 2026 and 2025, benefiting Booking Holdings Inc.'s effective tax rates. source