HON · 10-Q/A · 2026Q2 · Full report

Income Tax Rate Changes

HONEYWELL INTERNATIONAL INC · 2026-07-24 · Importance 54 · Surprise 74

The effective tax rate increased 670 basis points in Q2 2026 compared with Q2 2025. Foreign-tax accrual changes and transaction-related tax costs, primarily tied to the Quantinuum deconsolidation and Aerospace Spin-Off, increased the Q2 rate by 1,020 basis points. Valuation-allowance changes partially offset the increase by 380 basis points in Q2. The year-to-date effective tax rate increased 190 basis points, including a 560-basis-point impact from foreign-tax accrual changes offset by 340 basis points from valuation-allowance changes.

Key facts

• The effective tax rate increased 670 basis points in Q2 2026 versus Q2 2025 due to changes in accruals on foreign tax matters and transaction related tax costs primarily related to the Quantinuum deconsolidation and Aerospace Spin-Off of 1,020 basis points, partially offset by changes in valuation allowance of 380 basis points. source
• For the six months ended June 30, 2026 the effective tax rate increased 190 basis points versus 2025 due to changes in accruals on foreign tax matters of 560 basis points, partially offset by changes in valuation allowance of 340 basis points. source