MAR · 10-Q · 2026Q3 · Full report

Income Tax Legislation

MARRIOTT INTERNATIONAL INC /MD/ · 2026-11-02 · Importance 38 · Surprise 58

Income tax provision was unchanged at $266 million in the third quarter of 2026. A $29 million release of a non-U.S. tax valuation allowance, following legislation enacted during the quarter, offset $19 million of higher pretax income. The nine-month provision increased $98 million, or 15%, to $754 million, primarily because of the prior-year release of $91 million in tax reserves and $61 million of higher pretax income. The increase was partly offset by the $29 million valuation-allowance release, $27 million of lower tax on non-U.S. income, and an $18 million tax benefit from impairment charges.

Key facts

• Marriott's income tax provision was unchanged at $266 million in the 2026 third quarter; a $29 million release of a non-U.S. tax valuation allowance resulting from legislation enacted during the quarter was primarily offset by $19 million of higher pre-tax income. source
• Marriott's income tax provision increased by $98 million in the 2026 first three quarters, primarily due to the prior-year release of tax reserves ($91 million) and higher pre-tax income ($61 million). source
• Marriott’s effective tax rate decreased to 25.1% in the 2026 third quarter from 26.8% in the 2025 third quarter, primarily due to release of a non-U.S. tax valuation allowance following legislation enacted during the quarter. source
• In the 2026 first three quarters, Marriott's income tax provision increase was partially offset by a $29 million current-year release of a non-U.S. tax valuation allowance resulting from legislation enacted during the quarter, $27 million lower tax on non-U.S. income, and an $18 million tax benefit from impairment charges. source
• Marriott’s effective tax rate increased to 25.5% in the 2026 first three quarters from 23.3% in the 2025 first three quarters, primarily due to the prior-year release of tax reserves, partly offset by a current-year non-U.S. valuation allowance release and lower tax on non-U.S. income. source