v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes consists of the following:
 Year Ended December 31,
 202520242023
Current:   
Federal$329,813 $326,357 $261,481 
State93,746 101,428 79,023 
Deferred:   
Federal(610)5,470 (3,986)
State(833)323 244 
 Income tax expense$422,116 $433,578 $336,762 
Deferred Income Taxes on Consolidated Balance Sheets
Deferred income taxes on our consolidated balance sheets were comprised of the following:
 As of December 31,
 20252024
Deferred tax assets:  
Other accrued expenses and contract land deposit allowance$79,308 $68,784 
Deferred compensation4,351 4,349 
Equity-based compensation expense48,518 47,467 
Inventory16,727 18,468 
Unrecognized tax benefit5,400 6,998 
Other9,833 13,595 
Total deferred tax assets164,137 159,661 
Less: Deferred tax liabilities13,168 10,135 
Net deferred tax asset$150,969 $149,526 
Income Tax Expense Reconciliation
A reconciliation of our provision for income taxes and effective tax rate to the applicable statutory rates is as follows:
 Year Ended December 31,
 202520242023
 
Amount
Percent
Amount
Percent
Amount
Percent
U.S. federal statutory tax rate
$370,005 21.00 %$444,256 21.00 %$404,958 21.00 %
State and local income taxes, net of federal income tax effect (1)
79,683 4.53 %84,744 4.02 %66,379 3.44 %
Federal tax credits(2,402)(0.14)%(18,443)(0.87)%(12,839)(0.67)%
Changes in valuation allowances— — %— — %— — %
Nontaxable or nondeductible items:
Excess tax benefits from equity-based compensation(22,884)(1.30)%(76,711)(3.63)%(124,018)(6.43)%
Other3,868 0.22 %4,076 0.19 %5,932 0.31 %
Changes in unrecognized tax benefits
(6,154)(0.35)%(4,344)(0.21)%(3,650)(0.19)%
Effective tax rate
$422,116 23.96 %$433,578 20.50 %$336,762 17.46 %
(1)State taxes in Maryland, Pennsylvania, and Virginia made up the majority (greater than 50%) of the tax expense in this category.
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 Year Ended December 31,
 20252024
Balance at beginning of year$20,909 $25,588 
Additions based on tax positions related to the current year610 572 
Reductions for tax positions of prior years(6,453)(5,251)
Settlements— — 
Balance at end of year$15,066 $20,909 
Schedule of Income Tax Paid
Total income taxes paid consists of the following:

 Year Ended December 31,
 202520242023
Federal taxes paid$326,610 $321,700 $265,600 
State and local taxes paid:
Maryland26,098 *32,700 
Pennsylvania**30,596 
Virginia**24,053 
Other86,058 88,153 54,236 
Total Income Taxes Paid$438,766 $409,853 $407,185 
* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.