GOOGL · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Alphabet Inc. · 2026-07-23 · Importance 49 · Surprise 32

The second-quarter effective tax rate increased to 19.1% from 16.9% in the prior-year quarter, while the six-month rate increased to 19.1% from 17.1%. The higher rate primarily resulted from increased pretax earnings generated by unrealized equity-security gains that create deferred tax liabilities at the statutory rate. Second-quarter income tax provision increased to $26.6 billion on $138.8 billion of pretax income, and the six-month provision increased to $41.4 billion on $216.2 billion of pretax income. OECD global minimum-tax rules did not materially affect the six-month provision, although future foreign minimum-tax implementation could affect Alphabet’s effective rate and cash taxes.

Key facts

• The effective tax rate was 19.1% for the six months ended June 30, 2026, up from 17.1% for the six months ended June 30, 2025, primarily attributed to higher pre-tax earnings from unrealized gains on equity securities that are deferred tax liabilities at the statutory tax rate. source