Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Income Before Income Taxes

For the years ended December 31, 2022, 2021, and 2020, the domestic and foreign components of income before income taxes are as follows:

	Year Ended December 31,
	2022		2021		2020
United States	$	110,213	$	148,037	$	97,120
Foreign		1,149		1,323		1,990
Income before income taxes	$	111,362	$	149,360	$	99,110

Schedule of Provision for (Benefit from) Income Taxes

For the years ended December 31, 2022, 2021, and 2020, the components of the provision for (benefit from) income taxes are as follows:

	Year Ended December 31,
	2022			2021			2020
Current provision (benefit):
Federal	$	43,207		$	22,133		$	(3,733	)
State		11,140			10,438			2,288
Foreign		175			253			767
		54,522			32,824			(678	)
Deferred provision (benefit):
Federal		(20,278	)		5,698			19,539
State		(1,789	)		669			2,734
Foreign		(47	)		(204	)		(38	)
		(22,114	)		6,163			22,235
Income tax provision	$	32,408		$	38,987		$	21,557

Schedule of Effective Tax Rates

For the year ended December 31, 2022, 2021, and 2020, the components of the effective tax rate are as follows:

	Year Ended December 31,
	2022			2021			2020
U.S. federal taxes at statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit		7.7			7.5			6.2
Nondeductible expenses		0.5			0.3			0.4
Stock compensation		2.8			0.3			0.2
Foreign rate differential		(0.1	)		(0.2	)		(0.2	)
Federal and state credits		(4.7	)		(2.6	)		(3.2	)
CARES Act		—			—			(2.4	)
Disallowed officer compensation		0.8			1.0			—
Investment in partnership		1.0			(0.3	)		—
Federal, state, and foreign provision to return differences		(0.8	)		(0.7	)		—
Uncertain tax provision		0.5			—			—
Other	(0.0)				(0.2	)		(0.2	)
Consolidated effective tax rate		28.7	%		26.1	%		21.8	%
Effective tax rate attributable to redeemable noncontrolling    interest		(1.0	)		0.2			—
Effective tax rate attributable to CarGurus, Inc.		27.7	%		26.3	%		21.8	%

Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward

As of December 31, 2022 and 2021, the approximate income tax effect of each type of temporary difference and carryforward is as follows:

	As of December 31,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards	$	461		$	1,429
Credit carryforwards		928			4,241
Stock-based compensation		5,441			5,301
Lease liability		13,557			15,640
Investment in partnership		8,325			6,709
Accruals and reserves		3,770			5,942
Capitalized research and development		25,342			—
		57,824			39,262
Valuation Allowance		(258	)		(229	)
		57,566			39,033
Deferred tax liabilities:
Prepaid expenses		(2,466	)		(1,850	)
Deferred commissions		(4,200	)		(3,508	)
Right of use assets		(11,237	)		(12,955	)
Intangible assets		(733	)		(1,111	)
Property and equipment		(3,496	)		(6,289	)
		(22,132	)		(25,713	)
Net deferred tax assets	$	35,434		$	13,320

Schedule of Unrecognized Tax Benefits, Excluding Interest and Penalties

As of December 31, 2022 and 2021, changes in the gross uncertain tax position (excluding interest and penalties) are as follows:

	As of December 31,
	2022		2021
Balance as of December 31, 2021	$	—	$	—
Increase related to current year tax provision		198		—
Increase related to prior year tax provision		400		—
Balance as of December 31, 2022	$	598	$	—