TRU · 10-Q · 2026Q1 · Full report
Income Tax Rate Changes
TransUnion · 2026-04-28 · Importance 57 · Surprise 50
The adjusted effective tax rate was 25.0% for the three months ended March 31, 2026 compared with 25.8% for the same period in 2025. The adjusted provision for income taxes was $(77.9) million in Q1 2026 versus $(73.7) million in Q1 2025. Management attributes the lower adjusted tax rate in 2026 primarily to higher foreign tax credits related to recent acquisitions and restructuring activities and to higher deductions for foreign-derived intangible income resulting from provisions of the One Big Beautiful Bill Act effective January 1, 2026. Deferred tax adjustments and valuation allowance changes are also noted components of the adjusted provision reconciliations for the period.
Key facts
- TransUnion’s effective tax rates were 6.5% for the three months ended March 31, 2026 and 21.2% for the three months ended March 31, 2025.
- The lower effective tax rate for the three months ended March 31, 2026 was due primarily to the non-taxable gain on the acquisition of a majority equity interest in Trans Union de Mexico and elimination of a deferred tax liability on a Cost Method Investment upon obtaining control, and benefits from remeasurement of deferred taxes due to changes in state apportionment rates as a result of legal entity mergers.
- Adjusted tax rate was lower in 2026 compared to 2025 due in part to higher deductions for foreign-derived intangible income due to provisions of the One Big Beautiful Bill Act that went into effect January 1, 2026
- Total adjustments for income taxes were $(50.2) million for the three months ended March 31, 2026
- Adjusted tax rate was lower in 2026 compared to 2025 due primarily to higher foreign tax credits related to impacts from recent acquisitions and related restructuring activities
- Total adjustments for income taxes were $(32.7) million for the three months ended March 31, 2025
- Provision for income taxes was $(27.6) million for the three months ended March 31, 2026
- Deferred tax adjustments included $(18.9) million for the three months ended March 31, 2026 as part of other adjustments for income taxes
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | — | TransUnion’s effective tax rates were 6.5% for the three months ended March 31, 2026 and 21.2% for the three months ended March 31, 2025. |
| net_income | positive | realized | — | Adjusted tax rate was lower in 2026 compared to 2025 due in part to higher deductions for foreign-derived intangible income due to… |