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 $21.8B.

What does income tax mean?

Total income tax expense (current + deferred) recognized in the income statement, representing the company's total tax obligation on pre-tax income.

Microsoft MSFT Income Tax

Income Tax at other companies

International Business MachinesIBM

$172M+67.0%

AppleAAPL

$6.26B+38.1%

Electronic ArtsEA

$118M-22.9%

PTCPTC

$156.08M+266%

Take-Two Interactive SoftwareTTWO

$46.8M+162%

AmazonAMZN

$9.56B+110%

Other financials

Income statement

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Revenue$82.9B+18.3%

Gross profit$56.1B+16.4%

Operating income$38.4B+20.0%

Net income$31.8B+23.1%

EPS (diluted)$4.27+23.4%

Balance sheet

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Cash & equivalents$32.1B+11.4%

Total debt$125.43B+19.4%

Total equity$414.37B+28.7%

Total assets$694.23B+23.4%

Cash flow

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Operating cash flow$46.7B+26.0%

CapEx$30.9B+84.4%

Free cash flow$15.8B-22.1%

Valuation

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Market cap$2.62T-26.1%

Enterprise value$2.71T-25.1%

P/E20.9×-15.8×

P/S8.2×-4.9×

Profitability

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Gross margin68.3%-0.8pp

Operating margin46.8%+1.6pp

Net margin39.3%+3.6pp

FCF margin22.9%-2.8pp

Returns & leverage

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Return on equity34%+0.4pp

Debt / equity0.3×0.0×

Current ratio1.3×-0.1×

Where this comes from

Reported directly by Microsoft in its filing.

Tagged under the XBRL concept us-gaap:IncomeTaxExpenseBenefit.

The official record: Microsoft’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

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 $21.8B.
What does income tax mean?: Total income tax expense (current + deferred) recognized in the income statement, representing the company's total tax obligation on pre-tax income.