Income Taxes

9 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was $2.3 million and $7.4 million during the three and nine months ended June 30, 2023, respectively, compared to $3.8 million and $10.1 million during the three and nine months ended June 30, 2022, respectively. The effective income tax expense rate was 20.1% and 21.6% for the three and nine months ended June 30, 2023, respectively, compared to 21.3% and 22.1% for the three and nine months ended June 30, 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 June 30,				For the Nine Months Ended June 30,
	2023		2022		2023		2022
Federal statutory income tax expense	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	2.1	%	2.9	%	3.4	%	2.9	%
Permanent differences	0.5	%	0.4	%	0.5	%	0.4	%
Tax credits	(3.7)	%	(3.2)	%	(3.4)	%	(2.8)	%
Other	0.1	%	0.1	%	0.1	%	0.5	%
Total income tax expense	20.1	%	21.3	%	21.6	%	22.1	%

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.