Income taxes (Tables)

12 Months Ended

Mar. 31, 2026

Components of Income Before Income Tax Expense

The following table presents the components of Income before income tax expense for the fiscal year ended March 31, 2026:


	2026
	(in millions of yen)
Domestic		241,757
Foreign		1,443,869

Total Income before income tax expense		1,685,627

Components of Income Tax Expense

The following tables present the components of Income tax expense for the fiscal years ended March 31, 2024, 2025 and 2026; the table for the fiscal years ended March 31, 2024 and 2025 reflects applicable U.S. GAAP requirements prior to the adoption of ASU No.2023-09:



	2024			2025

	(in millions of yen)
Current:
Domestic		36,237			92,815
Foreign		223,529			211,075

Total current tax expense		259,765			303,890

Deferred:
Domestic		170,106			(101,241	)
Foreign		(4,750	)		(3,116	)

Total deferred tax expense (benefit)		165,355			(104,358	)

Total income tax expense		425,120			199,532


	2026
	(in millions of yen)
Current:
Domestic:
National		221,284
Local		32,838
Foreign		170,937

Total current tax expense		425,059

Deferred:
Domestic:
National		(70,405	)
Local		(4,044	)
Foreign		9,003

Total deferred tax expense (benefit)		(65,445	)

Total income tax expense		359,613

Components of Income Taxes Paid

The following table presents the components of Income taxes paid for the fiscal year ended March 31, 2026:


	2026
	(in millions of yen)
Japan:
National		95,979
Local		8,903
Foreign:
The United States:
Federal		57,759
State and local		15,820
Other jurisdictions		97,982

Total income taxes paid		276,443

Detailed Amounts of Tax Effects of Items Recorded Directly in Equity

The preceding table does not reflect the tax effects of items recorded directly in Equity for the fiscal years ended March 31, 2024, 2025 and 2026. The detailed amounts recorded directly in Equity are as follows:



	2024			2025			2026

	(in millions of yen)
Net unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses)		8,273			(22,487	)		(45,991	)
Less: reclassification adjustments		5,151			5,586			24,560

Total		13,425			(16,901	)		(21,431	)

Foreign currency translation adjustments:
Unrealized gains (losses)		—			2,181			(2,181	)
Less: reclassification adjustments		—			—			—

Total		—			2,181			(2,181	)

Defined benefit plan adjustments:
Unrealized gains (losses)		42,415			(18,658	)		81,940
Less: reclassification adjustments		(9,759	)		(14,301	)		(12,509	)

Total		32,655			(32,960	)		69,431

Own credit risk adjustments:
Unrealized gains (losses)		(6,590	)		6,485			(2,838	)
Less: reclassification adjustments		552			197			(32	)

Total		(6,038	)		6,682			(2,869	)

Total tax effect before allocation to noncontrolling interests		40,043			(40,998	)		42,949

Reconciliation of the Applicable Statutory Tax Rate to the Effective Tax rate

The following table shows a reconciliation of the applicable statutory tax rate to the effective tax rate for the fiscal years ended March 31, 2024 and 2025, and is based on the applicable U.S. GAAP requirements prior to the adoption of ASU No.2023-09:


	2024			2025
Effective statutory tax rate (2)		30.62	%		30.62	%
Income not subject to tax		(0.58	)		(1.22	)
Expenses not deductible for tax purposes		0.08			0.18
Tax rate differentials of subsidiaries		(0.92	)		(1.35	)
Change in valuation allowance		(2.34	)		(0.07	)
Change in undistributed earnings of subsidiaries		0.52			1.43
Noncontrolling interest income (loss) of consolidated VIEs.		(5.35	)		2.06
Effect of enacted change in tax rates		—			(0.36	) (1)
Foreign tax credit and payments		3.80			(1.80	)
Income excluded from taxable income of enterprise tax		(1.04	)		(2.14	)
Controlled foreign company rules		0.06			0.03
Other		1.34			(1.10	)

Effective income tax rate		26.19	%		26.28	%

Note:

(1)

On March 31, 2025, the National Diet of Japan approved a bill affecting the effective statutory tax rates of MHFG and its domestic subsidiaries. As a result, the effective statutory tax rate will be increased to 31.52% from the previous rate of 30.62% beginning on or after the fiscal year ending March 31, 2027. The increase in the Group’s balance of net deferred tax assets, reflecting such tax rate increases, was recognized as a reduction to Income tax expense in the fiscal year ended March 31, 202

The following table shows a reconciliation of the applicable statutory tax rate to the effective tax rate for the fiscal year ended March 31, 2026.


	2026
	Amount			Percent
	(in millions of yen, expect percentages)
Tax at Japan national statutory tax rate (2)		431,352			25.59	%
Local taxes, net of national income tax effect (3)		20,765			1.23
Foreign tax effects:
The United States		(21,702	)		(1.29	)
Other foreign jurisdictions		12,369			0.73
Effect of cross-border tax laws		2,335			0.14
Nontaxable or nondeductible items:
Noncontrolling interest income from consolidated VIEs		(33,077	)		(1.96	)
Others		(6,827	)		(0.41	)
Tax credits		(13,693	)		(0.81	)
Change in valuation allowance		(580	)		(0.03	)
Other adjustments		(31,329	)		(1.86	)

Total income tax expense and effective tax rate		359,613			21.33	%

Notes:

(2)	Income taxes applicable to us in Japan are imposed by the national and local governments, and the aggregate of these taxes resulted in a combined normal effective statutory tax rate of 30.62% for each of the

fiscal years ended March 31, 2024 and 2025. MHFG used the Japanese statutory corporate income tax rate of 25.59% as the applicable national statutory tax rate in the reconciliation of the statutory tax rate to the effective tax rate for the fiscal year ended March 31, 2026. Foreign subsidiaries are subject to income taxes of the jurisdictions in which they operate, and these taxes are reflected in the effective income tax rate.

(3)	Local taxes in Tokyo made up the majority (greater than 50%) of the tax effect in this category.

Components of Net Deferred Tax Assets

The components of net deferred tax assets at March 31, 2025 and 2026 are as follows:


	2025			2026
	(in millions of yen)
Deferred tax assets:
Derivative financial instruments		224,074			408,829
Allowance for credit losses		288,385			364,516
Lease liabilities		158,220			166,026
Trading securities		115,783			92,607
Foreign tax credit and payments (1)		112,412			87,110
Premises and equipment		45,797			52,928
Available-for-sale securities		1,454			38,313
Net operating loss carryforwards (2)(3)		151,390			134,675
Other		338,067			325,147

		1,435,582			1,670,149
Valuation allowance (1)(2)(3)		(215,626	)		(185,857	)

Deferred tax assets, net of valuation allowance		1,219,956			1,484,291

Deferred tax liabilities:
Investments		370,063			606,109
Prepaid pension cost and accrued pension liabilities		203,490			212,903
Right-of-use assets		148,989			152,952
Other		188,913			184,537

Deferred tax liabilities		911,454			1,156,502

Net deferred tax assets		308,502			327,790

Notes:

(1)	The amount includes ¥82,572 million and ¥59,644 million related to MHBK’s foreign tax credit carryforwards as of March 31, 2025 and 2026, respectively. The amount is mainly offset by valuation allowance, and if not utilized, the amount will expire during the fiscal year ending March 31, 2027.

(2)

The amount includes ¥11,423 million and ¥1,613

million related to MHSC’s net operating loss carryforwards resulting mainly from the organizational restructuring of certain foreign subsidiaries as of March 31, 2025 and 2026, respectively. The tax effect of the net operating loss carryforwards as of March 31, 2025 is substantially offset by

¥4,408

million of valuation allowance as a result of considering all available evidence regarding sources of future taxable income including historical trends in taxable income in the preceding periods and forecasted taxable income.

(3)

The amount includes ¥24,943 million and ¥24,852 million related to MHFG’s net operating loss carryforwards resulting mainly from intercompany capital transactions in relation to the share buyback conducted by MHSC as of March 31, 2025 and 2026, respectively. The tax effect of the net operating loss carryforwards is fully offset by ¥24,943 million and ¥24,852 million, respectively, of valuation allowance as

a result of considering all available evidence regarding sources of future taxable income including historical trends in taxable income in the preceding periods and forecasted taxable income.

Breakdown of Net Operating Loss Carryforwards by Tax Jurisdiction

The following table and accompanying footnotes provide a breakdown of deferred tax assets and the valuation allowance recognized in respect of net operating loss carryforwards by tax jurisdiction and by year of expiration as of March 31, 2025 and

2026


	Deferred tax assets		Valuation allowance			Deferred tax assets, net of valuation allowance
	(in billions of yen)
2025
Japan (1)		54		(35	)		20
The United States		5		—			5
The United Kingdom (2)		90		(90	)		—
Others		2		—			2

Total		151		(125	)		26

2026
Japan (3)		31		(26	)		5
The United States		5		(1	)		4
The United Kingdom (2)		98		(98	)		—
Others		1		—			1

Total		135		(125	)		10

Notes:

(1)

¥25 billion of the Japan deferred tax assets of ¥54 billion is related to MHFG, which is fully offset by a valuation allowance, and will mostly expire during the fiscal year ending March 31, 2032. ¥12 billion of the Japan deferred tax assets of ¥54 billion is related to MHBK and will mostly expire during the fiscal year ending March 31, 2034.

(2)	The United Kingdom net operating loss carryforwards may be carried forward indefinitely for tax purposes.

(3)

¥25 billion of the Japan deferred tax assets of ¥31 billion is related to MHFG, which is fully offset by a valuation allowance, and will mostly expire during the fiscal year ending March 31, 2032. ¥3 billion of the Japan deferred tax assets of ¥31 billion is related to MHBK and will mostly expire during the fiscal year ending March 31, 2034.

Roll-forward Valuation Allowance

The following table presents a roll-forward of the valuation allowance for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024			2025			2026
	(in millions of yen)
Balance at beginning of fiscal year		198,800			233,991			215,626
Changes that directly affected Income tax expense		(38,055	)		(538	)		(5,100	)
Changes that did not affect Income tax expense:
Expiration of net operating loss carryforwards		—			—			—
Others		73,246			(17,826	)		(24,668	)

Total		73,246			(17,826	)		(24,668	)

Balance at end of fiscal year		233,991			215,626			185,857

The decrease in the fiscal year ended March 31, 2024 of ¥38,055 million in the valuation allowance that directly affected Income tax expense was primarily related to a decrease of the realizability of deferred tax assets of MHFG and its subsidiaries. The increase in the fiscal year ended March 31, 2024 of ¥73,246 million in others was primarily related to an increase in the valuation allowance that is fully recognized against the MHBK’s foreign tax credit carryforwards.

The decrease in the fiscal year ended March 31, 2025 of ¥538 million in the valuation allowance that directly affected Income tax expense was primarily related to a decrease of the realizability of deferred tax assets of MHFG and its subsidiaries. The decrease in the fiscal year ended March 31, 2025 of ¥17,826

million in others was primarily related to a decrease in the valuation allowance that is fully recognized against the MHBK’s foreign tax credit carryforwards.

The decrease in the fiscal year ended March 31, 2026 of ¥5,100 million in the valuation allowance that directly affected Income tax expense was primarily related to a decrease of the realizability of deferred tax assets of MHFG and its subsidiaries. The decrease in the fiscal year ended March 31, 2026 of ¥24,668 million in others was primarily related to a decrease in the valuation allowance that is mainly recognized against the MHBK’s foreign tax credit carryforwards.

Net Operating Losses Carryforwards by Expiration Date

At March 31, 2026, the MHFG Group had net operating loss carryforwards totaling ¥416 billion. These carryforwards are scheduled to expire as follows:


	Net operating loss carryforwards (1)(3)
	(in billions of yen)
Fiscal year ending March 31:
2027		—
2028		—
2029		—
2030		—
2031		—
2032 and thereafter (2)		415

Total		416

Notes:

(1)

Net operating loss carryforwards related to Japanese local taxes at MHFG amounted to

¥518

billion (tax-effected

¥25 billion)

as of March 31, 2026 and are not included in the table. The net operating loss carryforwards are fully offset by valuation allowance and will mostly expire during the fiscal year ending

March 31, 2032.

(2)	Including the net operating loss carryforwards which may be carried forward indefinitely in the United Kingdom.

(3)	Net operating loss carryforwards related to Japanese local taxes at MHBK amounted to ¥80 billion (tax-effected ¥3 billion) as of March 31, 2026 and are not included in the table. The net operating loss carryforwards will mostly expire during the fiscal year ending March 31, 2034.

Roll-forward of Unrecognized Tax Benefits

The following table is a roll-forward of unrecognized tax benefits for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024			2025			2026
	(in millions of yen)
Total unrecognized tax benefits at beginning of fiscal year		7,043			7,639			4,766

Gross amount of increases (decreases) related to positions taken during prior years		205			(1,132	)		130
Gross amount of increases related to positions taken during the current year		1,080			585			678
Amount of decreases related to settlements		(1,633	)		(2,232	)		(522	)
Foreign exchange translation		944			(94	)		331

Total unrecognized tax benefits at end of fiscal year		7,639			4,766			5,383