MA · 10-Q · 2026Q1 · Full report

Income Tax Rate Changes

Mastercard Inc · 2026-04-30 · Importance 25 · Surprise 32

The GAAP effective income tax rate was 19.3% for Q1 2026 versus 18.6% in Q1 2025, an increase of 0.7 percentage points primarily due to lower net discrete tax benefits in 2026. The adjusted effective income tax rate was 19.2% in Q1 2026 versus 19.1% in Q1 2025, a 0.1 percentage point change. The higher GAAP rate modestly reduced net income growth on a reported basis versus adjusted results. Management indicates the adjusted rate was comparable year‑over‑year.

Key facts

• GAAP effective income tax rate for the three months ended March 31, 2026: 19.3% versus 18.6% in the comparable period in 2025 (up 0.7 percentage points), primarily due to lower net discrete tax benefits in 2026. source
• Adjusted effective income tax rate for the three months ended March 31, 2026: 19.2% versus 19.1% in the comparable period in 2025 (up 0.1 percentage point). source