NVR · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

NVR INC · 2026-11-04 · Importance 21 · Surprise 14

The effective tax rate for the third quarter of 2026 was 25.7%, up from 22.8% in the third quarter of 2025; the nine-month rate remained 24.5% in both years. Excess tax benefits from stock-option exercises were approximately $1.5 million for the 2026 quarter, compared with $13.4 million in 2025. For the nine months, those benefits were $14.9 million in 2026 versus $19.7 million in 2025. NVR cited equity-award activity and deferred-compensation-plan distributions as sources of tax-rate volatility.

Key facts

• NVR recognized excess stock-option tax benefits of approximately $1,500 and $14,900 for Q3 and the first nine months of 2026, versus $13,400 and $19,700 in the corresponding 2025 periods. source
• NVR expects continued future tax-rate volatility from excess tax benefits on equity awards and deferred compensation plan distributions; retirement of a plan participant could cause a significant rabbi-trust share distribution and corresponding tax deduction. source
• NVR's effective tax rate for Q3 and the first nine months of 2026 was 25.7% and 24.5%, respectively, versus 22.8% and 24.5% in the corresponding 2025 periods. source