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Income Taxes
6 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense was $2.1 million and $5.2 million during the three and six months ended March 31, 2023, respectively, compared to $3.4 million and $6.3 million during the three and six months ended March 31, 2022, respectively. The effective income tax expense rate was 21.8% and 22.4% for the three and six months ended March 31, 2023, respectively, compared to 23.4% and 22.6% for the three and six months ended March 31, 2022, respectively. Our effective income tax rate is affected by state taxes, permanent differences, and tax credits, including the FICA tip credit, for both years, as presented below.
For the Three Months Ended
March 31,
For the Six Months Ended
March 31,
2023202220232022
Federal statutory income tax expense21.0 %21.0 %21.0 %21.0 %
State income taxes, net of federal benefit4.0 %2.9 %4.0 %2.9 %
Permanent differences0.6 %0.5 %0.5 %0.4 %
Tax credits(3.8)%(3.1)%(3.2)%(2.6)%
Other— %2.1 %0.1 %0.8 %
Total income tax expense21.8 %23.4 %22.4 %22.6 %
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. Fiscal year ended September 30, 2019 and subsequent years remain open to federal tax examination. The Company ordinarily goes through various federal and state reviews and examinations for various tax matters.