PAYC · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
Paycom Software, Inc. · 2026-08-06 · Importance 64 · Surprise 56 · No source text
Paycom’s effective income tax rate increased to 29.3% for the six months ended June 30, 2026 from 25.6% in the comparable 2025 period. The higher rate was primarily caused by lower excess tax benefits from stock-based compensation and reduced research and development credits. Income-tax provision increased 38.7% to $109.0 million year to date, while net income increased 15.0% to $263.1 million. The OBBBA’s immediate deduction for domestic research and development and reinstated 100% bonus depreciation reduced cash tax remittances during the first half of 2026 and favorably affected operating cash flow.
Key facts
- Three months provision for income taxes: $49.5 million (9.3% of total revenues) for the three months ended June 30, 2026, a 78.6% increase versus prior year. source
- Six months provision for income taxes: $109.0 million (9.9% of total revenues) for the six months ended June 30, 2026, a 38.7% increase versus prior year. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -5.7% | Six months provision for income taxes: $109.0 million (9.9% of total revenues) for the six months ended June 30, 2026, a 38.7% increase… |
| net_income | negative | realized | -4.1% | Three months provision for income taxes: $49.5 million (9.3% of total revenues) for the three months ended June 30, 2026, a 78.6% increase… |