UNP · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

UNION PACIFIC CORP · 2026-07-23 · Importance 59 · Surprise 48

Second-quarter income tax expense increased 29% year over year, and six-month expense increased 16% to $1.090 billion from $938 million. The second-quarter effective tax rate increased to 22.0% from 18.9%, while the six-month rate increased to 22.8% from 21.1%. The comparison reflected $115 million of lower deferred tax expense in the second quarter of 2025 from Kansas apportionment legislation. Changes in state tax laws and other state tax matters reduced second-quarter 2026 deferred tax expense by $27 million, partly offsetting the rate increase.

Key facts

• Income tax expense increased 29% in Q2 2026 and 16% year-to-date 2026 versus 2025; effective tax rates were 22.0% in Q2 2026 and 18.9% in Q2 2025, and 22.8% year-to-date 2026 versus 21.1% year-to-date 2025. source