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Income Taxes | 12 Months Ended
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Jan. 31, 2026
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes In December 2023, the FASB issued guidance related to improvements to income tax disclosures. The new standard updates the income tax disclosure related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The standard also provides for further disclosure comparability. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this standard as of January 31, 2026, on a prospective basis. 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 have not had a material impact on the Company’s income tax provision but have resulted in a reduction of the Company’s current year U.S. cash tax obligations. In 2021, the Organization for Economic Co-operation and Development announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15%. Subsequently multiple sets of administrative guidance have been issued, including the release of a comprehensive Side-by-Side Package in January 2026, which introduced additional safe harbors and options to adopt simplified compliance mechanism for companies headquartered in jurisdictions with a qualified Side-by-Side regime. Member countries must enact local legislation or update existing regulations to adopt and incorporate the Pillar Two Side-by-Side Package. Many non-US tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 with the adoption of additional components in later years or announced their plans to enact legislation in future years. Considering TJX does not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum, these rules did not have a material impact on the Company’s financial statements for fiscal 2026. There remains uncertainty as to the final Pillar Two model rules. The Company is continuing to evaluate the impacts of enacted legislation and pending legislation to enact Pillar Two Model Rules in the non-US tax jurisdictions in which TJX operates. For financial reporting purposes, components of income before income taxes are as follows:
| Fiscal Year Ended
In millions | January 31, 2026 | February 1, 2025 | February 3, 2024
|  |  | (53 weeks)
United States | $ | 6,264 |  | $ | 5,541 |  | $ | 5,077 |
Foreign | 1,035 |  | 942 |  | 890 |
Income before income taxes | $ | 7,299 |  | $ | 6,483 |  | $ | 5,967 |
The provision for income taxes includes the following:
| Fiscal Year Ended
In millions | January 31, 2026 | February 1, 2025 | February 3, 2024
|  |  | (53 weeks)
Current: |  |  |
Federal | $ | 1,022 |  | $ | 1,009 |  | $ | 982 |
State | 351 |  | 338 |  | 344 |
Foreign | 321 |  | 244 |  | 175 |
Deferred: |  |  |
Federal | 90 |  | 9 |  | 6 |
State | (2) |  | 14 |  | (34) |
Foreign | 23 |  | 5 |  | 20 |
Provision for income taxes | $ | 1,805 |  | $ | 1,619 |  | $ | 1,493 |
TJX had net deferred tax (liabilities) assets as follows:
| Fiscal Year Ended
In millions | January 31, 2026 | February 1, 2025
Deferred tax assets: |  |
Net operating loss carryforward | $ | 92 |  | $ | 104 |
Pension, stock compensation, postretirement and employee benefits | 466 |  | 392 |
Operating lease liabilities | 2,820 |  | 2,634 |
Accruals and reserves | 322 |  | 300 |
Other | 15 |  | 20 |
Total gross deferred tax assets | $ | 3,715 |  | $ | 3,450 |
Valuation allowance | (58) |  | (51) |
Total deferred tax asset | $ | 3,657 |  | $ | 3,399 |
Deferred tax liabilities: |  |
Property, plant and equipment | $ | 916 |  | $ | 742 |
Capitalized inventory | 79 |  | 73 |
Operating lease right of use assets | 2,724 |  | 2,540 |
Tradename/intangibles | 25 |  | 24 |
Undistributed foreign earnings | 28 |  | 23 |
Other | 6 |  | 5 |
Total deferred tax liabilities | $ | 3,778 |  | $ | 3,407 |
Net deferred tax (liability) | $ | (121) |  | $ | (8) |
Non-current asset | $ | 147 |  | $ | 148 |
Non-current liability | (268) |  | (156) |
Net deferred tax (liability) | $ | (121) |  | $ | (8) |
TJX has provided for and recorded a deferred tax liability for all applicable taxes on undistributed earnings of its foreign subsidiaries that are not indefinitely reinvested through January 31, 2026. The Company has not provided for deferred taxes on the approximately $2.2 billion of undistributed earnings related to all other foreign subsidiaries as such earnings are considered to be indefinitely reinvested in the business. The amount of unrecognized deferred tax liability related to the undistributed earnings is not expected to be material. As of January 31, 2026 and February 1, 2025, TJX had state net operating loss carryforwards of $195 million and $225 million respectively. Of the $195 million as of January 31, 2026, $10 million can be carried forward indefinitely, and $185 million will expire, if unused, in the fiscal years 2033 through 2046. TJX has analyzed the realization of its state net operating loss carryforwards and determined that it is more likely than not that a portion of its state net operating loss carryforwards will not be realized. The Company had foreign (primarily Australia and the U.K.) net operating loss carryforwards of $293 million as of January 31, 2026 and $338 million as of February 1, 2025, which can be carried forward indefinitely. For the foreign net operating loss carryforwards for which the Company determined it is more likely than not that they will not be realized (primarily Australia), valuation allowance of $56 million and $50 million has been provided for as of January 31, 2026 and February 1, 2025, respectively. The difference between the U.S. federal statutory income tax rate and TJX’s worldwide effective income tax rate is reconciled below:
| Fiscal Year Ended
In millions | January 31, 2026
U.S. federal statutory income tax rate | $ | 1,533 |  | 21.0 | %
Effective state income tax rate, net of federal income tax effect(a) | 275 |  | 3.8 |
Foreign tax effects |  |
Canada | 107 |  | 1.5 |
Other foreign jurisdictions | 18 |  | 0.2 |
Effect of cross-border tax laws | (17) |  | (0.2) |
Tax credits | (63) |  | (0.9) |
Nondeductible/nontaxable items | (37) |  | (0.5) |
Change in unrecognized tax benefits | (5) |  | (0.1) |
Other | (6) |  | (0.1) |
Worldwide effective income tax rate | $ | 1,805 |  | 24.7 | %
(a) California, New York, New Jersey, Massachusetts, Illinois, and Florida make up the majority (greater than 50%) of this category. There are no changes in tax laws or rates enacted in the current period or changes in valuation allowances which are material for separate disclosure.
|  | Fiscal Year Ended
|  | February 1, 2025 | February 3, 2024
|  |  | (53 weeks)
U.S. federal statutory income tax rate |  | 21.0 | % | 21.0 | %
Effective state income tax rate |  | 4.5 |  | 4.2 |
Impact of foreign operations |  | 1.0 |  | 0.9 |
Excess share-based compensation |  | (1.3) |  | (0.8) |
Tax credits |  | (0.2) |  | (0.2) |
Nondeductible/nontaxable items |  | 0.1 |  | 0.1 |
Other |  | (0.1) |  | (0.2) |
Worldwide effective income tax rate |  | 25.0 | % | 25.0 | %
TJX’s effective income tax rate decreased for fiscal 2026 compared to fiscal 2025. The decrease in the fiscal 2026 effective income tax rate is primarily due to a benefit from the acquisition of federal tax credits. Cash paid (net of refunds received) for income taxes consisted of the following:
| Fiscal Year Ended
In millions | January 31, 2026
U.S. federal tax | $ | 869 |
State and local taxes | 330 |
Foreign taxes: |
Canada | 195 |
Other foreign jurisdictions | 77 |
Total income taxes paid | $ | 1,471 |
A reconciliation of the beginning and ending gross unrecognized tax benefits, excluding interest and penalties, is as follows:
| Fiscal Year Ended
In millions | January 31, 2026 | February 1, 2025 | February 3, 2024
Balance, beginning of year | $ | 261 |  | $ | 226 |  | $ | 266 |
Additions for uncertain tax positions taken in current year | 15 |  | 4 |  | 6 |
Additions for uncertain tax positions taken in prior years | 26 |  | 61 |  | — |
Reductions for uncertain tax positions taken in prior years | — |  | (20) |  | — |
Reductions resulting from lapse of statute of limitations | (2) |  | (2) |  | (19) |
Settlements with tax authorities | (14) |  | (8) |  | (27) |
Balance, end of year | $ | 286 |  | $ | 261 |  | $ | 226 |
The amount of unrecognized tax benefits that, if recognized, would impact TJX’s effective tax rates is $214 million as of January 31, 2026, $212 million as of February 1, 2025 and $221 million as of February 3, 2024. TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. For U.S. federal income tax purposes, fiscal years through 2010 are no longer subject to examination. The Company is under examination in various jurisdictions, including the U.S. (federal, state and local) as well as foreign, and believes it has adequately provided for all tax positions in such jurisdictions. TJX’s accounting policy is to classify interest and penalties related to income taxes as part of income tax expense. The Company accrued interest and penalties of $9 million for the fiscal year ended January 31, 2026, $7 million for the fiscal year ended February 1, 2025 and $10 million for the fiscal year ended February 3, 2024. The total accrued amount of interest and penalties was $22 million as of January 31, 2026, $28 million as of February 1, 2025 and $32 million as of February 3, 2024.

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