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Income Taxes
 6 Months Ended
Aug. 02, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
On July 4, 2025, the One Big Beautiful Bill Act was signed into law, making permanent certain expiring provisions of the Tax Cuts and Jobs Act, including 100% accelerated depreciation deductions on qualified property and immediate expensing of domestic research and development costs, as well as modifying some of the international tax rules. These changes are not expected to have a material impact on the Company’s income tax provision and are expected to reduce the Company’s current year U.S. cash tax obligations.
A number of countries have enacted legislation to implement the Organization for Economic Cooperation and Development’s 15% global minimum tax regime (Pillar Two) with effect from January 1, 2024. These changes did not have a material impact on our effective tax rate, results of operations or financial position for the second quarter of fiscal 2026 and are not expected to have a significant impact to the full fiscal year. We continue to evaluate the impacts of proposed and enacted legislation for the jurisdictions in which TJX operates.
The effective income tax rate was 24.5% for the second quarter of fiscal 2026 and 25.1% for the second quarter of fiscal 2025. The effective income tax rate was 23.9% for the first six months of fiscal 2026 and 24.1% for the first six months of fiscal 2025. The decrease in the effective income tax rate for both the second quarter and first six months of fiscal 2026 was primarily due to a benefit from the acquisition of federal tax credits, partially offset by the decrease in excess tax benefit from share-based compensation.
TJX had net unrecognized tax benefits of $209 million as of August 2, 2025, $217 million as of February 1, 2025 and $202 million as of August 3, 2024.
TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In the U.S. and India, fiscal years through 2010 are no longer subject to examination. In all other jurisdictions, fiscal years through 2011 are no longer subject to examination.
TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The accrued amounts for interest and penalties on the Consolidated Balance Sheets were $24 million as of August 2, 2025, $28 million as of February 1, 2025 and $26 million as of August 3, 2024.
Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the Consolidated Financial Statements as of August 2, 2025. During the next twelve months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by up to $22 million, which would reduce the provision for taxes on earnings.