Microsoft (MSFT) Tax Rate (2009 - 2026)
Microsoft (MSFT) posted Tax Rate of 19.22% for Q1 2026, down 5.25% sequentially from 20.29% in Q4 2025, and up 152.0% YoY from 7.63% in Q1 2025.
Microsoft (MSFT) Tax Rate (2009 - 2026) Analysis & Trends
Microsoft (MSFT) has 18 years of Tax Rate data on file, last reported at 19.22% in Q1 2026.
- Quarterly Tax Rate rose 152.0% year-over-year to 19.22% in Q1 2026, while the trailing twelve-month figure through Mar 2026 was 18.96% (down 1698.0% YoY) and the FY2025 annual result came in at 17.63%, down 2115.0% from the prior year.
- Tax Rate fell to 19.22% in Q1 2026 per MSFT's latest filing, from 20.29% in the prior quarter.
- The five-year high for Tax Rate was 20.29% in Q4 2025, with the low at 61.39% in Q2 2022.
- Average Tax Rate over 5 years is 5.86%, with a median of 17.91% recorded in 2024.
- Year-over-year, Tax Rate tumbled 4287 bps in 2022 and jumped 7289 bps in 2025.
- Microsoft's Tax Rate stood at 19.24% in 2022, then dropped by 9 bps to 17.55% in 2023, then gained by 2 bps to 17.9% in 2024, then gained by 13 bps to 20.29% in 2025, then dropped by 5 bps to 19.22% in 2026.
- Business Quant data shows MSFT's Tax Rate at 19.22% in Q1 2026, 20.29% in Q4 2025, and 19.11% in Q3 2025.
Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Tax Rate (Qtr) |
|---|---|---|---|---|---|
| 1 | Microsoft | 2,853.66 Bn | 2,775.39 Bn | 56.06 Bn | 19.22% |
| 2 | Oracle | 408.21 Bn | 376.86 Bn | 17.12 Bn | 19.84% |
| 3 | Palantir Technologies | 300.98 Bn | 293.06 Bn | 1.42 Bn | 1.37% |
| 4 | Palo Alto Networks | 247.84 Bn | 243.30 Bn | 1.91 Bn | 21.31% |
| 5 | CrowdStrike Holdings | 193.63 Bn | 190.57 Bn | 993.68 Mn | -6.22% |
| 6 | Fortinet | 117.45 Bn | 114.16 Bn | 1.49 Bn | 18.58% |
| 7 | Cloudflare | 86.88 Bn | 85.93 Bn | 455.60 Mn | -7.01% |
| 8 | Synopsys | 86.18 Bn | 86.06 Bn | 1.77 Bn | 18.14% |
| 9 | Block | 46.10 Bn | 39.21 Bn | 2.91 Bn | 21.40% |
| 10 | CoreWeave | 45.15 Bn | 42.89 Bn | 2.01 Bn | -12.80% |
Historic Data
Download Data| Date | Value |
|---|---|
| Mar 31, 2026 | 19.22% |
| Mar 31, 2026 | 19.22% |
| Dec 31, 2025 | 20.29% |
| Dec 31, 2025 | 20.29% |
| Sep 30, 2025 | 19.11% |
| Sep 30, 2025 | 19.11% |
| Jun 30, 2025 | 16.50% |
| Jun 30, 2025 | 16.50% |
| Mar 31, 2025 | 17.70% |
| Mar 31, 2025 | 17.70% |
| Dec 31, 2024 | 17.90% |
| Dec 31, 2024 | 17.90% |
| Sep 30, 2024 | 18.51% |
| Sep 30, 2024 | 18.51% |
| Jun 30, 2024 | -56.38% |
| Jun 30, 2024 | -56.38% |
| Mar 31, 2024 | 17.91% |
| Mar 31, 2024 | 17.91% |
| Dec 31, 2023 | 17.55% |
| Dec 31, 2023 | 17.55% |