3M’s Tax Rate: Sticking to the Competition or Leading the Way?

3M's effective tax rate for 2024 was 16.68%, compared to 27.78% last year, reflective of judicious tax management practices. It compares favorably with the industrial manufacturing sector where peer companies typically have effective tax rates between 15% and 25%.

Around the globe, corporate tax rates vary significantly, with the U.S. having 21% federal corporate taxation, whereas others, such as the UK, recently increased their rate to 25%. Compared to its competitors in similar businesses, 3M's tax rate positions it well to maintain operating productivity and shareholder return.

This successful tax strategy aligns with 3M's financial objectives, as highlighted in its 2025 Investor Day, where the company emphasized growth and operational excellence.

Source: CSIMarket, PwC, 3M Newsroom