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Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Taxes  
Income Taxes

8. Income Taxes

The Company’s effective tax rates on pre-tax income were 25.8% and 28.7% for the three months ended March 31, 2025 and 2024, respectively. The decrease in the Company’s effective tax rate for the three months ended March 31, 2025, compared to the prior year related to increased deductibility of stock-based compensation realized upon certain stock option exercises and restricted stock unit vesting. The effective tax rate for the three months ended March 31, 2024, was impacted by limitation of executive compensation deductibility related to the prior-Chief Executive Officer’s (“CEO’s”) retention agreement.

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For the three months ended March 31, 2025 and 2024, the effective tax rates differ from the U.S. federal statutory income tax rate as follows:

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March 31, 

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2025

    

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2024

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Tax at federal statutory rate

21.0

%

​

21.0

%

State taxes, net

4.9

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6.1

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Permanent items (1)

0.4

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2.0

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Tax credits

(0.5)

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(0.4)

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Effective income tax rate

25.8

%

​

28.7

%

(1)Includes the deductibility limitations on excess compensation.