ZILLOW GROUP, INC.

Note 7. Income Taxes

We are subject to income taxes in the United States (federal and state) and certain foreign jurisdictions. As of September 30, 2026 and December 31, 2025, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. We have accumulated federal tax losses of approximately $1.8 billion as of December 31, 2025, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $70 million (tax effected) as of December 31, 2025.

Our income tax expense or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account for the relevant period. We update our estimate of the annual effective tax rate on a quarterly basis and make adjustments to the tax provision or benefit, as applicable. Income tax expense was not material for the three or nine months ended September 30, 2026 or 2025.