WM · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

WASTE MANAGEMENT INC · 2026-07-29 · Importance 20 · Surprise 40

Second-quarter 2026 income tax expense increased to $238 million from $201 million, and the effective tax rate rose to 23.2% from 21.7%. Six-month tax expense increased to $406 million from $352 million, while the effective rate rose to 21.2% from 20.5%. The higher tax expense partly offset the $102 million increase in operating income and reduced the net-income benefit to $59 million. Section 48 investment-tax-credit benefits are expected to total $400 million to $425 million, with $309 million recognized during 2023 through 2025 and the remainder expected in 2026 and 2027.

Key facts

• Income tax expense and effective income tax rate for the three and six months ended June 30, 2026 were $238 million (23.2%) and $406 million (21.2%), respectively, compared to $201 million (21.7%) and $352 million (20.5%) for the comparable 2025 periods. source