HON · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

HONEYWELL INTERNATIONAL INC · 2026-10-22 · Importance 30 · Surprise 40

The effective tax rate decreased 660 basis points in Q3 2026 compared with Q3 2025. Changes in U.S. federal, state, and foreign tax matter accruals reduced the Q3 rate by 3,950 basis points, partly offset by transaction-related tax costs, prior-position estimate changes, and other tax accruals totaling 3,290 basis points. The nine-month effective tax rate decreased 270 basis points, with transaction-related tax impacts reducing the rate by 890 basis points and prior tax-position estimate changes increasing it by 740 basis points.

Key facts

• The effective tax rate decreased 660 basis points in Q3 2026 due to changes in accruals on U.S. federal, state, and foreign tax matters of 3,950 basis points partially offset by transaction related tax costs and other items of 3,290 basis points. source
• Year-to-date 2026 the effective tax rate decreased 270 basis points due to transaction related tax impacts of 890 basis points partially offset by changes in estimate on prior tax positions of 740 basis points. source