CL · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

COLGATE PALMOLIVE CO · 2026-10-30 · Importance 23 · Surprise 32

The GAAP effective income tax rate for the first nine months of 2026 was 23.8%, compared with 23.2% in 2025. On a non-GAAP basis, the rate was 23.3% in 2026 and 23.2% in 2025. Colgate-Palmolive estimated its full-year 2026 effective tax rate before discrete items at 23.5%, up from 23.3% in 2025. The OBBBA had no material effect on the company’s financial statements for the nine months ended September 30, 2026.

Key facts

• The January 5, 2026 Side-by-Side Package, effective January 1, 2026, introduced new Pillar II safe harbors the Company expects to qualify for, which should reduce compliance costs when fully enacted. source
• The estimated tax plus interest for the Company’s disputed tax matter covering 2010 through 2021 is approximately $170 and is not included in uncertain tax positions. source
• The Company estimates its full-year 2026 effective income tax rate before discrete period items at 23.5%, compared with 23.3% in 2025. source
• The Company has limited matters it plans to appeal for U.S. federal income tax years 2010 through 2013, and the related international operation was also audited for 2014 through 2018. source
• The IRS initiated an audit of the Company’s 2019 through 2021 tax years in May 2024, and the audit remains ongoing. source
• The Company will recognize any impact from withdrawal or modification of the IRS temporary relief for certain foreign tax credit regulations in the period when that change occurs. source
• Pillar II did not materially affect the Company’s consolidated financial statements for the nine months ended September 30, 2026, and the Company does not expect a material impact going forward. source
• The effective income tax rate was 23.6% in Q3 2026 and 22.8% in Q3 2025; the non-GAAP rates were 23.3% and 22.8%, respectively. source