V · 10-Q · 2026Q2 · Full report

Income Tax Provision / Rate Changes

VISA INC. · 2026-07-29 · Importance 45 · Surprise 50

Visa recorded an $18 million deferred tax benefit for the quarter and a $351 million benefit for the nine-month period from a change in U.S. taxation of certain foreign earnings. The company also recorded a $217 million nine-month tax benefit from a tax position on certain expenses. The nine-month effective tax rate was 15.6% on a GAAP basis, compared with 16.7% in the prior-year period. The tax benefits reduced nine-month income-tax provision to $3.231 billion and increased reported net income relative to the absence of those benefits.

Key facts

• For the three months ended June 30, 2026, Visa recorded a deferred tax benefit of $18 million due to a change in the U.S. taxation of certain foreign earnings.
• GAAP income tax provision for the nine months ended June 30, 2026: $3,231 million and effective income tax rate: 15.6%.
• For the nine months ended June 30, 2026, Visa recorded a deferred tax benefit of $351 million due to a change in the U.S. taxation of certain foreign earnings.
• For the three months ended June 30, 2026, GAAP income tax provision: $1,205 million and effective income tax rate: 17.6%.
• Non-GAAP effective income tax rate for the three months ended June 30, 2026: 18.4%.
• Non-GAAP effective income tax rate for the nine months ended June 30, 2026: 17.8%.