Dollar Tree, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

12 Months Ended

Jan. 31, 2026

Income from continuing operations before income taxes is as follows:

The provision for income taxes consists of the following:

A reconciliation of the statutory U.S. federal income tax rate and the effective tax rate follows:


	Year Ended
(dollars in millions)	January 31, 2026				February 1, 2025				February 3, 2024
Statutory U.S. federal income tax rate	$	342.2	21.0	%	$	290.6	21.0	%	$	349.0	21.0	%
Domestic Federal:
Cross-border tax laws	1.6		0.1		1.2		0.1		2.1		0.1
Tax credits:
Work Opportunity Tax Credit	(17.0)		(1.0)		(14.5)		(1.0)		(21.0)		(1.3)
Nontaxable and nondeductible items	8.2		0.5		18.6		1.3		14.2		0.9
Other, net	3.8		0.2		(1.6)		(0.1)		(5.4)		(0.4)
Domestic state and local income taxes, net of federal income tax benefit (a)	66.6		4.1		44.7		3.2		56.2		3.4
Foreign tax effects:
Other foreign jurisdictions	0.6		—		1.2		0.1		1.0		0.1
Worldwide changes in unrecognized tax benefits	(1.8)		(0.1)		0.9		0.1		—		—
Effective tax rate	$	404.2	24.8	%	$	341.1	24.7	%	$	396.1	23.8	%

(a) During the year ended January 31, 2026, state taxes in California, Florida, Illinois, Michigan, New Jersey, and New York made up greater than 50 percent of the tax effect in this category. During the year ended February 1, 2025, state taxes in California, Florida, Illinois, Michigan, New Jersey, New York, and Virginia made up greater than 50 percent of the tax effect in this category. During the year ended February 3, 2024, state taxes in California, Illinois, Michigan, New Jersey, New York, and Virginia made up greater than 50 percent of the tax effect in this category.

Significant components of our net deferred tax assets (liabilities) follow:


(in millions)	January 31, 2026		February 1, 2025
Deferred tax assets:
Operating lease liabilities	$	1,200.1	$	1,841.3
Impairment of assets held for sale	—		870.3
Net operating losses, interest expense and credit carryforwards	250.6		55.4

Accrued expenses	26.2		37.2
Accrued compensation expense	41.9		39.5

State tax election	—		11.8
Other	1.7		3.3
Total deferred tax assets	1,520.5		2,858.8
Valuation allowance	(17.4)		(11.6)
Deferred tax assets, net	1,503.1		2,847.2
Deferred tax liabilities:
Operating lease ROU assets	(1,128.5)		(1,698.8)
Other intangibles	(16.5)		(196.1)
Property and equipment	(443.2)		(623.7)
Prepaids	(48.5)		(46.1)
Inventory	(18.7)		(21.9)

Total deferred tax liabilities	(1,655.4)		(2,586.6)
Deferred income taxes, net	$	(152.3)	$	260.6

The following is a reconciliation of our total gross unrecognized tax benefits:


(in millions)	January 31, 2026		February 1, 2025
Beginning Balance	$	28.2	$	22.0
Additions for tax positions of prior years	1.8		10.2
Additions, based on tax positions related to current year	4.0		4.8
Settlements	(0.1)		(2.3)
Lapses in statutes of limitation	(4.2)		(6.5)
Ending balance	$	29.7	$	28.2

Cash income taxes paid, net of refunds received, consisted of the following: