PAYC · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Paycom Software, Inc. · 2026-11-05 · Importance 52 · Surprise 56

Paycom's effective income tax rate for the first nine months of 2026 increased to 28.9% from 26.2% in 2025. The higher rate primarily reflected lower excess tax benefits from stock-based compensation and reduced research and development credits. Nine-month income-tax provision increased 33.5% to $161.2 million, compared with $120.7 million in the prior-year period.

Key facts

• Paycom’s effective income tax rate was 28.9% for the nine months ended September 30, 2026, compared with 26.2% for the corresponding 2025 period; the increase primarily reflected decreased excess tax benefits from stock-based compensation and reduced R&D credits. source