Microsoft’s $101 billion of pretax U.S. income dwarfs its previous all-time high of $65 billion, recorded the previous year. And instead of paying $21 billion of current federal income tax, as the 21 percent statutory federal income tax rate should require, Microsoft reports just $2.46 billion of current federal tax. That’s an effective federal income tax rate of 2.44 percent. This means the company reduced its federal income taxes by $18.7 billion last year.

https://itep.org/microsoft-earnings-record-profit-tax-avoidance-2026/