PG · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

PROCTER & GAMBLE Co · 2026-10-22 · Importance 18 · Surprise 14

The effective income tax rate increased to 21.0% for the three months ended September 30, 2026, from 20.8% in the prior-year quarter. The 20-basis-point increase was primarily caused by discrete impacts related to uncertain tax positions. Favorable geographic mix partially offset the tax-rate increase. Higher effective tax rates also reduced Grooming and Health Care segment net-earnings margins, with unfavorable geographic mix cited as the driver.

Key facts

• The effective income tax rate for the three months ended September 30, 2026 was 21.0%, compared to 20.8% for the three months ended September 30, 2025. source
• The increase in effective tax rate was primarily driven by discrete impacts related to uncertain tax positions, partially offset by favorable geographic mix impacts. source