Microsoft (MSFT) Tax Rate (2009 - 2026)
Microsoft (MSFT) posted Tax Rate of 20.29% for fiscal Q1 2027 (quarter ended Sep 30, 2026), up 1.18 percentage points from 19.11% a year earlier and up 1.49 percentage points from the prior quarter.
Microsoft (MSFT) Tax Rate (2009 - 2026) Analysis & Trends
For the trailing twelve months through Sep 30, 2026, Tax Rate at Microsoft was 19.68%, up 1.86 percentage points year-over-year; for FY2026 (ended Jun 30, 2026), it was 19.40%, up 1.77 percentage points from FY2025.
- Annual Tax Rate shows a five-year change of +5.57 percentage points (FY2021 to FY2026).
- In prior fiscal years, Microsoft's Tax Rate was 17.63% in FY2025 (-0.60 pp), 18.23% in FY2024 (-0.75 pp), 18.98% in FY2023 (+5.87 pp) and 13.11% in FY2022 (-0.71 pp).
- The fiscal Q1 2027 figure stands as the highest quarterly Tax Rate since fiscal Q2 2018.
- On a year-over-year basis, Tax Rate has increased in each of the last five quarters, with an average year-over-year change of +0.69 percentage points over the last eight quarters.
- The strongest year-over-year quarter for Tax Rate in the past five years was fiscal Q1 2023, with a gain of 18.52 percentage points; the weakest was fiscal Q4 2025, with a drop of 2.63 percentage points.
- According to Business Quant data, Tax Rate for the three prior fiscal quarters was 18.80% (Q4 2026), 19.22% (Q3 2026) and 20.29% (Q2 2026).
Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Tax Rate (Qtr) |
|---|---|---|---|---|---|
| 1 | Microsoft | 3,944.62 Bn | 3,880.11 Bn | 62.56 Bn | 20.29% |
| 2 | International Business Machines | 231.10 Bn | 185.71 Bn | 9.71 Bn | 11.93% |
| 3 | Equinix | 100.11 Bn | 88.01 Bn | 1.31 Bn | 8.94% |
| 4 | Cloudflare | 96.02 Bn | 78.46 Bn | 557.23 Mn | - |
| 5 | Nebius | 31.44 Bn | 4.87 Bn | 448.70 Mn | - |
| 6 | Verisign | 27.82 Bn | 25.17 Bn | 393.20 Mn | 23.96% |
| 7 | CoreWeave | 25.57 Bn | 12.66 Bn | 1.70 Bn | - |
| 8 | Nutanix | 15.68 Bn | 7.37 Bn | 651.35 Mn | - |
| 9 | GoDaddy | 14.30 Bn | 9.69 Bn | 843.00 Mn | 21.29% |
| 10 | Akamai Technologies | 12.01 Bn | 5.41 Bn | 613.75 Mn | 20.62% |
Historic Data
| Date | Value |
|---|---|
| Sep 30, 2026 | 20.29% |
| Jun 30, 2026 | 18.80% |
| Mar 31, 2026 | 19.22% |
| Dec 31, 2025 | 20.29% |
| Sep 30, 2025 | 19.11% |
| Jun 30, 2025 | 16.50% |
| Mar 31, 2025 | 17.70% |
| Dec 31, 2024 | 17.90% |
| Sep 30, 2024 | 18.51% |
| Jun 30, 2024 | 19.13% |
| Mar 31, 2024 | 17.91% |
| Dec 31, 2023 | 17.55% |
| Sep 30, 2023 | 18.30% |
| Jun 30, 2023 | 18.79% |
| Mar 31, 2023 | 19.29% |
| Dec 31, 2022 | 19.24% |
| Sep 30, 2022 | 18.62% |
| Jun 30, 2022 | 18.29% |
| Mar 31, 2022 | 17.15% |
| Dec 31, 2021 | 16.66% |
Microsoft Tax Rate API
Pull this series into your own models, spreadsheets and apps with the Business Quant
Historical Metrics API. The request below matches the chart above — change the
frequency, period or values and it follows. Swap YOUR_API_KEY for your own key.
https://data.businessquant.com/historic?slug=tax-rate&ticker=MSFT&period=max&api_key=YOUR_API_KEYimport requests
url = "https://data.businessquant.com/historic"
params = {"slug": "tax-rate", "ticker": "MSFT", "period": "max", "api_key": "YOUR_API_KEY"}
data = requests.get(url, params=params).json()const res = await fetch("https://data.businessquant.com/historic?slug=tax-rate&ticker=MSFT&period=max&api_key=YOUR_API_KEY");
const data = await res.json();