Microsoft (MSFT) Tax Rate (2009 - 2026)
Microsoft's (MSFT) quarterly Tax Rate came in at 24.84% in Q2 2026, down 1330.0% year-over-year from 2.02% in Q2 2025, and up 29.23% quarter-over-quarter from 19.22% in Q1 2026.
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Microsoft (MSFT) Tax Rate (2009 - 2026) Analysis & Trends
Microsoft has disclosed Tax Rate across 18 years of filings, most recently posting 24.84% for Q2 2026.
- In Q2 2026, Tax Rate fell 1330.0% year-over-year to 24.84%; the TTM figure through Jun 2026 stood at 21.0% (down 234.0% YoY), while the FY2026 annual figure was 21.0%, down 234.0% from the prior year.
- Tax Rate came in at 24.84% for Q2 2026 at Microsoft, up from 19.22% in the prior quarter.
- In the past five years, Tax Rate ranged from a high of 46.12% in Q2 2022 to a low of 17.15% in Q1 2022.
- Average Tax Rate over 5 years is 23.87%, with a median of 19.16% recorded in 2025.
- Year-over-year, Tax Rate jumped 3016 bps in 2022 and plunged 1330 bps in 2026.
- Over 5 years, Tax Rate stood at 19.24% in 2022, then retreated by 9 bps to 17.55% in 2023, then grew by 2 bps to 17.9% in 2024, then grew by 13 bps to 20.29% in 2025, then advanced by 22 bps to 24.84% in 2026.
- Per Business Quant data, the three most recent Tax Rate figures were 24.84% in Q2 2026, 19.22% in Q1 2026, and 20.29% in Q4 2025.
Peer Set
Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Tax Rate (Qtr) |
|---|---|---|---|---|---|
| 1 | Microsoft | 3,657.26 Bn | 3,524.51 Bn | 60.48 Bn | 24.84% |
| 2 | International Business Machines | 218.71 Bn | 207.35 Bn | 9.91 Bn | 12.63% |
| 3 | Nebius | 59.68 Bn | 51.64 Bn | 448.70 Mn | -2,014.71% |
| 4 | CoreWeave | 55.39 Bn | 49.85 Bn | 1.70 Bn | -10.99% |
| 5 | Nutanix | 17.97 Bn | 15.96 Bn | 610.79 Mn | 11.35% |
| 6 | DigitalOcean Holdings | 13.47 Bn | 12.70 Bn | 154.66 Mn | -30.56% |
| 7 | Kingsoft Cloud Holdings | 2.85 Bn | 2.16 Bn | 68.71 Mn | 21.59% |
| 8 | Tuya | 1.14 Bn | 160.97 Mn | 43.05 Mn | -1.13% |
| 9 | SharonAI Holdings | 1.10 Bn | -764.92 Mn | 1.17 Mn | -0.30% |
| 10 | Backblaze | 795.98 Mn | 744.60 Mn | - | - |
Historic Data
Download Data
Historic Data
| Date | Value |
|---|---|
| Jun 30, 2026 | 24.84% |
| Mar 31, 2026 | 19.22% |
| Dec 31, 2025 | 20.29% |
| Sep 30, 2025 | 19.11% |
| Jun 30, 2025 | 38.14% |
| Mar 31, 2025 | 17.70% |
| Dec 31, 2024 | 17.90% |
| Sep 30, 2024 | 18.51% |
| Jun 30, 2024 | 36.52% |
| Mar 31, 2024 | 17.91% |
| Dec 31, 2023 | 17.55% |
| Sep 30, 2023 | 18.30% |
| Jun 30, 2023 | 43.29% |
| Mar 31, 2023 | 19.29% |
| Dec 31, 2022 | 19.24% |
| Sep 30, 2022 | 18.62% |
| Jun 30, 2022 | 46.12% |
| Mar 31, 2022 | 17.15% |
| Dec 31, 2021 | 16.66% |
| Sep 30, 2021 | 0.09% |