META · 10-Q · 2026Q1 · Full report
Income Tax Rate Changes
Meta Platforms, Inc. · 2026-04-30 · Importance 90 · Surprise 100 · In source text
On February 18, 2026, Treasury Notice 2026-7 provided relief from the U.S. Corporate Alternative Minimum Tax (CAMT) related to expensing of previously capitalized U.S. R&D costs, and Meta recognized an $8.03 billion discrete income tax benefit in Q1 2026. This benefit partially offsets the $15.93 billion discrete charge recognized in Q3 2025 on enactment of the One Big Beautiful Bill Act; the company expects to remain subject to CAMT for 2026 and subsequent years. Meta notes OECD January 2026 guidance including a Side‑by‑Side Safe Harbor and continues to evaluate Pillar Two/global minimum tax impacts across jurisdictions. Absent changes to the tax landscape, Meta expects its effective tax rate for the remaining quarters of 2026 to be between 13%–16%.
Key facts
- Effective tax rate was (23)% for the three months ended March 31, 2026, reflecting an income tax benefit of $8.03 billion related to Treasury Notice 2026-7. source
- Long-term income tax liabilities as of March 31, 2026 include $9.81 billion related to deferred tax liabilities and $7.04 billion related to uncertain tax positions. source
- Excluding the $8.03 billion tax benefit, the effective tax rate would have been 14% for the three months ended March 31, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +14.3% | Effective tax rate was (23)% for the three months ended March 31, 2026, reflecting an income tax benefit of $8.03 billion related to… |
| liability | negative | realized | — | Long-term income tax liabilities as of March 31, 2026 include $9.81 billion related to deferred tax liabilities and $7.04 billion related… |
| liability | negative | realized | — | Long-term income tax liabilities as of March 31, 2026 include $9.81 billion related to deferred tax liabilities and $7.04 billion related… |