After Tax Income
What is After Tax Income?
After-tax income is the profit after subtracting income tax expense.
How it Works
A business will have a pre-tax profit of a certain amount.
The profit will be subject to an income tax rate.
This tax is then deducted from pre-tax profit.
The remainder is known as after-tax profit.
This after-tax profit is shown on the income statement as net income.
© R.J. Hickman 2020