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Growth Metrics

Microsoft (MSFT) Tax Rate (2016 - 2025)

Microsoft (MSFT) has disclosed Tax Rate for 17 consecutive years, with 20.29% as the latest value for Q4 2025.

  • Quarterly Tax Rate rose 239.0% to 20.29% in Q4 2025 from the year-ago period, while the trailing twelve-month figure was 29.61% through Dec 2025, down 1152.0% year-over-year, with the annual reading at 31.49% for FY2025, 1227.0% down from the prior year.
  • Tax Rate hit 20.29% in Q4 2025 for Microsoft, up from 19.11% in the prior quarter.
  • In the past five years, Tax Rate ranged from a high of 20.29% in Q4 2025 to a low of 39.82% in Q2 2023.
  • Historically, Tax Rate has averaged 5.29% across 5 years, with a median of 17.63% in 2023.
  • Biggest five-year swings in Tax Rate: tumbled -2992bps in 2021 and later soared 3470bps in 2022.
  • Year by year, Tax Rate stood at 16.66% in 2021, then grew by 16bps to 19.24% in 2022, then fell by -9bps to 17.55% in 2023, then rose by 2bps to 17.9% in 2024, then rose by 13bps to 20.29% in 2025.
  • Business Quant data shows Tax Rate for MSFT at 20.29% in Q4 2025, 19.11% in Q3 2025, and 24.69% in Q2 2025.