Microsoft (MSFT) Tax Rate (2009 - 2026)

Microsoft (MSFT) posted Tax Rate of 24.84% for Q2 2026, up 29.23% sequentially from 19.22% in Q1 2026, and down 1330.0% YoY from 2.02% in Q2 2025.

Microsoft (MSFT) Tax Rate (2009 - 2026) Analysis & Trends

Microsoft has reported Tax Rate for 18 years, with the latest figure at 24.84% in Q2 2026.

Quarterly Tax Rate fell 1330.0% year-over-year to 24.84% in Q2 2026, while the trailing twelve-month figure through Jun 2026 was 21.0% (down 234.0% YoY) and the FY2026 annual result came in at 21.0%, down 234.0% from the prior year.
Tax Rate climbed to 24.84% in Q2 2026 per MSFT's latest filing, from 19.22% in the prior quarter.
Over five years, Tax Rate peaked at 46.12% in Q2 2022 and troughed at 17.15% in Q1 2022.
A 5-year average of 23.87% and a median of 19.16% in 2025 frame the typical range for Tax Rate.
The sharpest annual moves came in 2022 and 2026: Tax Rate soared 3470 bps in 2022, then sank 1330 bps in 2026.
Over 5 years, Tax Rate stood at 19.24% in 2022, then slipped by 9 bps to 17.55% in 2023, then rose by 2 bps to 17.9% in 2024, then rose by 13 bps to 20.29% in 2025, then grew by 22 bps to 24.84% in 2026.
According to Business Quant data, Tax Rate over the past three periods registered 24.84%, 19.22%, and 20.29% for Q2 2026, Q1 2026, and Q4 2025 respectively.

#	Company	Market Cap	Enterprise Value	Gross Profit (Qtr)	Tax Rate (Qtr)
1	Microsoft	3,576.39 Bn	3,443.64 Bn	60.48 Bn	24.84%
2	Palantir Technologies	412.58 Bn	403.17 Bn	1.64 Bn	1.42%
3	Oracle	407.66 Bn	375.77 Bn	-	-10.34%
4	Palo Alto Networks	299.27 Bn	296.16 Bn	2.03 Bn	-13.46%
5	Fortinet	115.83 Bn	111.76 Bn	1.64 Bn	15.97%
6	Cloudflare	106.65 Bn	102.48 Bn	499.52 Mn	-1.22%
7	Synopsys	76.61 Bn	74.41 Bn	1.77 Bn	18.14%
8	CoreWeave	51.53 Bn	45.99 Bn	1.70 Bn	-10.99%
9	Block	47.55 Bn	41.12 Bn	3.17 Bn	71.11%
10	NetApp	40.73 Bn	37.15 Bn	1.37 Bn	-42.96%

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