Chevron CVX Increase (Decrease) In Income Tax Expense (Benefit)

The income tax expense increased $2.8 billion between quarterly periods from $1.6 billion in 2025 to $4.5 billion in 2026. The company’s income before income tax expense increased $12.5 billion from $4.1 billion in 2025 to $16.7 billion in 2026, primarily due to higher upstream liquids realizations, higher upstream sales volumes, higher downstream margins on refined product sales and favorable timing effects partly offset by higher depreciation, depletion and amortization. The company’s effective tax rate decreased between quarterly periods from 39 percent in 2025 to 27 percent in 2026. The change in effective tax rate was primarily due to mix effects, resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions, and the decrease in current period unfavorable tax items relative to the company’s income before tax.