GOOGL · 10-Q · 2026Q1 · Full report

Income Tax Rate Changes

Alphabet Inc. · 2026-04-30 · Importance 68 · Surprise 58

Income before provision for income taxes was $77.4 billion for the three months ended March 31, 2026, with a provision for income taxes of $14.8 billion and an effective tax rate of 19.2%, up from 17.3% a year earlier. The effective tax rate increase was primarily driven by higher acquisition-related tax integration costs, partially offset by increased stock-based compensation-related tax benefits and a discrete tax benefit from the deconsolidation of one of the Bets. OECD global minimum tax model rules were noted but did not have a material effect on the quarter; Alphabet cautioned that further enactments could affect future effective tax rates and cash tax payments. Long-term income taxes payable of $12.5 billion as of March 31, 2026 primarily relate to unrecognized tax benefits.