TSCO · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

TRACTOR SUPPLY CO /DE/ · 2026-08-06 · Importance 56 · Surprise 58

The second-quarter effective income tax rate decreased to 19.8% from 23.2% in the prior-year quarter, reducing the rate by 3.4 percentage points.,The first-half effective tax rate decreased to 20.9% from 22.8%, a 1.9-percentage-point reduction.,The primary driver was an income-tax benefit from purchasing transferable federal income-tax credits.,Second-quarter tax-rate changes also reflected one-time Petsense restructuring charges and VIP Petcare acquisition costs, while first-half benefits were partly offset by permanent differences and other discrete tax items.,Reported first-half income-tax expense was $139.1 million on $664.3 million of pretax income, while adjusted tax expense was $157.5 million.

Key facts

• Effective income tax rate for Q2 fiscal 2026: 19.8% compared to 23.2% in Q2 fiscal 2025; decrease primarily reflects income tax benefit from purchase of transferable federal income tax credits and one-time charges related to Petsense restructuring and acquisition costs of VIP Petcare. source
• Effective income tax rate for the first six months of fiscal 2026: 20.9% compared to 22.8% in the first six months of fiscal 2025; decrease driven primarily by income tax benefit from purchase of transferable federal income tax credits. source