Income Taxes

9 Months Ended

Nov. 01, 2025

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

The effective tax rate for the third quarter of 2025 was 604.4% compared to (2.8%) for the third quarter of 2024. Year to date, the tax rate was 19.7% and 1.3% for 2025 and 2024, respectively. The impact of the 2025 net favorable tax items results in increasing the tax rate from the statutory rate when compared to the third quarter pre-tax loss, and decreasing the tax rate from the statutory rate when compared to the year to date pre-tax income. The impact of the 2024 net favorable tax items, when compared to a pre-tax income, results in decreasing the tax rate from the statutory rate.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted and signed into law. The Act restores and makes permanent a number of corporate tax provisions, such as full expensing for US-based research and development expenditures and capital investments, as well as the calculation of the business interest expense limitation. The Company has evaluated the provisions of the Act and determined that while the legislation impacts the timing of certain tax deductions, it does not result in a material change to Kohl's effective tax rate.