JPM · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

JPMORGAN CHASE & CO · 2026-08-06 · Importance 87 · Surprise 82 · In source text

The second-quarter 2026 effective tax rate increased to 23.1% from 18.0%, raising income tax expense to $6.4 billion from $3.3 billion on pretax income of $27.5 billion. The quarterly rate increase was primarily caused by the absence of a $774 million tax benefit recognized in the prior year from resolving tax audits and the impact of tax regulations. The six-month effective tax rate rose to 21.6% from 19.2%, and six-month tax expense increased to $10.3 billion from $7.1 billion. Year-to-date tax-rate pressure from the missing $774 million benefit and income mix was partially offset by higher tax benefits from employee share-based-award vesting.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
net_incomenegativerealized—Income tax expense for three months ended June 30, 2026: $6,361 million.