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