IRM · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

IRON MOUNTAIN INC · 2026-08-05 · Importance 51 · Surprise 64 · In source text

The six-month 2026 effective tax rate was 14.1%, compared with 773.6% in the prior-year period, when the rate was distorted by a net loss position. Six-month 2026 income-tax provision was $41.9 million on net income of $255.1 million, compared with a $31.1 million provision on a $27.1 million net loss in 2025. The 2026 rate benefited from the dividends-paid deduction, nontaxable other income, and lower foreign tax rates, partly offset by disallowed interest expense. Effective January 1, 2026, legislation increased the permitted taxable-REIT-subsidiary asset threshold from 20% to 25%, and the company expects potential remaining Pillar Two taxes to have no material consolidated impact.

Key facts

• Effective on January 1, 2026, the One Big Beautiful Bill Act increased maximum allowable value of a REIT's total assets held in TRS at quarter end from 20% to 25%. source
• Effective tax rates: three months ended June 30, 2026: 12.2%; three months ended June 30, 2025: 60.3%; six months ended June 30, 2026: 14.1%; six months ended June 30, 2025: 773.6%. source
• Company expects the OECD SbS Safe Harbor may be adopted prior to year ended December 31, 2026, though it is not yet enacted in any foreign jurisdiction where they operate. source
• Beginning in 2024, company became subject to OECD Pillar Two which may impose Top-Up Taxes if effective tax rate in a jurisdiction is below 15%, but company believes it qualifies as an Excluded Entity as a 'Real Estate Investment Vehicle'. source

Impact estimates