TT · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Trane Technologies plc · 2026-10-29 · Importance 23 · Surprise 22

The effective tax rate for the third quarter of 2026 was 17.1%, down from 21.2% in the third quarter of 2025. For the first nine months, the rate declined to 18.0% from 19.9%. In the 2026 periods, higher-tax jurisdictions and U.S. federal, state and local taxes increased the rate above Ireland’s 12.5% statutory rate, while employee share-based payment benefits and U.S. R&D tax credits partly offset those effects. The nine-month income tax provision decreased by $8.7 million to $574.4 million despite higher pretax earnings.

Key facts

• Trane Technologies’ effective tax rate was 17.1% for the third quarter of 2026, compared with 21.2% for the third quarter of 2025. source
• Trane Technologies’ effective tax rate was 18.0% for the nine months ended September 30, 2026, compared with 19.9% in 2025. source
• Trane Technologies’ third-quarter 2026 effective tax rate exceeded the 12.5% Irish statutory rate primarily because of earnings taxed at higher rates and U.S. federal, state and local taxes, partly offset by employee share-based payment tax benefits, U.S. R&D credits and prior-year return finalization impacts. source
• Nine-month 2026 and 2025 effective tax rates exceeded the 12.5% Irish statutory rate primarily because of higher-taxed earnings and U.S. federal, state and local taxes, partly offset by employee share-based payment tax benefits, U.S. R&D credits and prior-year return finalization impacts. source