TSCO · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

TRACTOR SUPPLY CO /DE/ · 2026-11-05 · Importance 25 · Surprise 32

The third-quarter fiscal 2026 effective income tax rate increased to 22.1% from 21.0% in the prior-year quarter, primarily because certain prior-year tax-planning initiatives were lapped. For the first nine months, the effective tax rate declined to 21.3% from 22.3%. The nine-month decrease was driven mainly by an income tax benefit from purchasing transferable federal income tax credits, partly offset by permanent differences and other discrete tax items. Reported nine-month income tax expense was $202.8 million, compared with $221.2 million on an adjusted basis after the non-GAAP adjustment.

Key facts

• Third-quarter fiscal 2026 effective income tax rate was 22.1%, compared with 21.0% in third-quarter fiscal 2025; the increase primarily reflected lapping certain prior-year tax planning initiatives. source
• First-nine-month fiscal 2026 effective income tax rate was 21.3%, compared with 22.3% in the first nine months of fiscal 2025; the decrease was primarily driven by the benefit from purchasing transferable federal income tax credits. source