META · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Meta Platforms, Inc. · 2026-07-30 · Importance 40 · Surprise 42 · In source text

Meta said U.S. Treasury Notice 2026-7 provided relief from the Corporate Alternative Minimum Tax (CAMT) related to expensing previously capitalized U.S. research and development costs, producing a six-month 2026 income tax benefit. In January 2026, the OECD introduced a Side-by-Side Safe Harbor allowing U.S.-headquartered companies to remain subject to U.S. global minimum taxes while being exempt from Pillar Two. Meta does not expect the guidance to materially affect its 2026 consolidated financial statements, but warned that future effective tax rates and cash tax payments could increase as jurisdictions enact global minimum-tax laws and transitional relief expires. Absent changes to its tax landscape, management expects an effective tax rate of 15% to 17% for the remaining quarters of 2026.

Key facts

• Our provision (benefit) for income taxes for the six months ended June 30, 2026 was $(2,113) million compared to $3,935 million in the six months ended June 30, 2025, a decrease of $6.05 billion, or 154%, primarily due to the income tax benefit from U.S. Treasury Notice 2026-7.
• We expect our effective tax rate for the remaining quarters of 2026 to be between 15-17%.
• Our provision for income taxes in the three months ended June 30, 2026 was $2,908 million, an increase of $711 million, or 32%, compared to the same period in 2025, primarily due to an increase in the effective tax rate.
• Effective tax rate was 16% for the three months ended June 30, 2026.

Impact estimates