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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
AB Holding is a publicly-traded partnership (“PTP”) for federal tax purposes and, accordingly, is not subject to federal or state corporate income taxes. However, AB Holding is subject to the 4.0% New York City unincorporated business tax (“UBT”), net of credits for UBT paid by AB, and to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. AB Holding’s partnership gross income is derived from its interest in AB.
AB Holding’s federal income tax is computed by multiplying AB qualifying revenues by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate. AB qualifying revenues are primarily U.S. investment advisory fees. AB Holding Units in AB’s consolidated rabbi trust are not considered outstanding for purposes of calculating AB Holding’s ownership interest in AB.
Three Months Ended September 30,Nine Months Ended
September 30,
20252024% Change20252024% Change
(in thousands)
Net income attributable to AB Unitholders$259,263 $345,972 (25.1)%$690,529 $873,471 (20.9)%
Multiplied by: weighted average equity ownership interest31.4 %39.4 %35.2 %39.5 %
Equity in net income attributable to AB Unitholders$81,412 $136,374 (40.3)$242,995 $345,360 (29.6)
AB qualifying revenues$718,822 $713,242 0.8 $2,131,418 $2,099,807 1.5 
Multiplied by: weighted average equity ownership interest for calculating tax
29.5 %35.7 %32.6 %36.4 %
Multiplied by: federal tax3.5 %3.5 %3.5 %3.5 %
Federal income taxes7,424 8,924 24,293 26,728 
State income taxes237 255 669 692 
Total income taxes$7,661 $9,179 (16.5)%$24,962 $27,420 (9.0)%
Effective tax rate9.4 %6.7 %10.3 %7.9 %

In order to preserve AB Holding’s status as a PTP for federal income tax purposes, management ensures that AB Holding does not directly or indirectly (through AB) engage in a substantial new line of business. If AB Holding were to lose its status as a PTP, it would be subject to corporate income tax, which would reduce materially AB Holding’s net income and its quarterly distributions to AB Holding Unitholders.