Tax
Income Tax
Microsoft Income Tax decreased by 22.7% to $7.56B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 36.2%, from $5.55B to $7.56B. Over 4 years (FY 2021 to FY 2025), Income Tax shows an upward trend with a 22.0% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
StatementIncome Statement
SectionTax
CategoryProfitability
SignalLower is better
VolatilityStable
First reportedQ1 2014
Last reportedQ3 2026Apr 29, 2026
How to read this metric
An increase relative to pre-tax income may signal a higher effective tax rate or changes in tax legislation, while a decrease may indicate tax benefits or lower jurisdictional rates.
Detailed definition
Represents the total provision for income taxes recognized by the company during the reporting period, including both cu...
Peer comparison
Highly dependent on the company's geographic footprint and tax planning strategies compared to peers.
Metric ID:
income_tax_expenseHistorical Data
20 periods
| Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $2.95B | $19.00M | $3.75B | $3.46B | $3.75B | $4.02B | $3.91B | $4.37B | $4.65B | $4.99B | $4.66B | $4.79B | $5.21B | $5.60B | $5.26B | $5.55B | $5.38B | $6.55B | $9.79B | $7.56B |
| QoQ Change | — | -99.4% | >999% | -7.7% | +8.2% | +7.2% | -2.5% | +11.8% | +6.2% | +7.5% | -6.7% | +2.8% | +8.9% | +7.4% | -6.2% | +5.6% | -3.1% | +21.8% | +49.3% | -22.7% |
| YoY Change | — | — | — | — | +27.1% | >999% | +4.4% | +26.3% | +24.0% | +24.3% | +19.0% | +9.5% | +12.2% | +12.2% | +12.9% | +16.0% | +3.2% | +17.0% | +86.2% | +36.2% |
Range$19.00M – $9.79B
CAGR+21.9%
Avg YoY Growth>999%
Median YoY Growth+18.0%
Income Tax at Other Companies
Frequently Asked Questions
- What is Microsoft's income tax?
- Microsoft (MSFT) reported income tax of $7.56B in Q1 2026.
- How has Microsoft's income tax changed year-over-year?
- Microsoft's income tax increased by 36.2% year-over-year, from $5.55B to $7.56B.
- What is the long-term trend for Microsoft's income tax?
- Over 4 years (2021 to 2025), Microsoft's income tax has grown at a 22.0% compound annual growth rate (CAGR), from $9.83B to $21.80B.
- What does income tax mean?
- The total amount of income tax the company is required to pay on its earnings.