KO · 10-Q · 2026Q4 · Full report

Income Tax Rate Changes

COCA COLA CO · 2026-10-28 · Importance 58 · Surprise 56 · Matches filing data

For the three months ended October 2, 2026, Coca-Cola recorded income taxes of $777 million at a 16.1% effective tax rate, compared with $500 million at 11.9% a year earlier. For the nine-month periods, the effective tax rate was 16.5% in 2026 versus 17.0% in 2025, with income taxes of $2.459 billion and $2.215 billion, respectively. The 2026 rates included net tax benefits of $172 million for the quarter and $491 million for nine months; 2025 included $442 million and $597 million, respectively. The company estimated its 2026 effective tax rate at approximately 19.7%, before significant operating or nonoperating items and excluding potential effects of the IRS litigation.

Key facts

• Coca-Cola's 2026 effective tax rate is expected to be approximately 19.7%, excluding the potential impact of significant operating and nonoperating items and not including the impact of the ongoing IRS tax litigation if the Company does not prevail. source
• Coca-Cola's effective tax rates for the three and nine months ended October 2, 2026 included net tax benefits of $117 million and $298 million, respectively, primarily related to return to provision adjustments. source
• Coca-Cola recorded income taxes of $2,459 million at a 16.5% effective tax rate for the nine months ended October 2, 2026, versus $2,215 million at 17.0% for the nine months ended September 26, 2025. source
• Coca-Cola recorded income taxes of $777 million at a 16.1% effective tax rate for the three months ended October 2, 2026, versus $500 million at 11.9% for the three months ended September 26, 2025. source

Impact estimates