INCOME TAXES
The provision for income taxes consists of:

Fiscal Years Ended
January 31,
2026
February 1,
2025
February 3,
2024
Current income tax expense:
  Federal$55,775 $52,846 $59,652 
  State9,147 8,826 10,733 
Deferred income tax expense (benefit)1,453 637 (1,089)
Total$66,375 $62,309 $69,296 

The components of the provision for income taxes and a reconciliation of the Company's effective tax rate to the statutory income tax rate are as follows:

Fiscal Years Ended
January 31,
2026
February 1,
2025
February 3,
2024
U.S. federal statutory rate$57,985 21.0 %$54,133 21.0 %$60,735 21.0 %
State and local income taxes, net of federal income tax effect (a)
7,206 2.6 6,966 2.7 8,450 2.9 
Tax credits(224)(0.1)(192)(0.1)(226)(0.1)
Nontaxable or nondeductible items2,336 0.8 1,391 0.5 1,466 0.5 
Other adjustments(928)(0.3)11 0.1 (1,129)(0.3)
Effective tax rate$66,375 24.0 %$62,309 24.2 %$69,296 24.0 %
(a)    State taxes in California, Colorado, Illinois, Kansas, Michigan, Minnesota, Nebraska, Oregon, Texas, and Wisconsin make up the majority (greater than 50%) of the tax effect in this category.
Deferred income tax assets and liabilities are comprised of the following:

January 31,
2026
February 1,
2025
Deferred income tax assets (liabilities):
  Inventory$6,085 $5,641 
  Stock-based compensation6,290 5,657 
  Accrued compensation7,942 7,002 
  Accrued store operating costs2,850 2,880 
  Unrealized (gain)/loss on securities(935)(624)
  Gift certificates redeemable1,156 1,188 
  Property and equipment(26,628)(21,744)
  Operating lease right-of-use assets(81,525)(69,550)
  Operating lease liabilities92,115 78,303 
  Capitalized research and development costs— 51 
Net deferred income tax asset$7,350 $8,804 

As of January 31, 2026 and February 1, 2025, respectively, the net deferred income tax assets of $7,350 and $8,804 are classified in other assets. There were no unrecognized tax benefits recorded in the Company’s consolidated financial statements as of January 31, 2026 or February 1, 2025. Fiscal years 2022 through 2025 remain subject to potential federal examination. Additionally, fiscal years 2021 through 2025 are subject to potential examination by various state taxing authorities.

Additionally, cash paid for income taxes for each fiscal year is as follows:

Fiscal Years Ended
January 31,
2026
February 1,
2025
February 3,
2024
Cash paid for income taxes:
  Federal$52,500 $51,500 $51,000 
  State7,459 7,490 9,598 
Total$59,959 $58,990 $60,598 
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Historical Timeline

Fiscal YearFiled
2026Apr 1, 2026Showing above
2025Apr 2, 2025
2024Apr 3, 2024
2023Mar 29, 2023
2022Mar 30, 2022
2021Mar 31, 2021
2020Apr 1, 2020
2019Apr 3, 2019
2018Apr 4, 2018
2017Mar 29, 2017
2016Mar 30, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.