Net Income After Taxes

What Does Net Income After Taxes Mean?

Net Income After Taxes (NIAT) refers to the amount of money earned from work or business after deducting operational expenses and tax obligations. Companies are required to disclose this information in their income statements.

NIAT is also commonly referred to as profit, earnings, or net earnings.

Insuranceopedia Explains Net Income After Taxes

To calculate Net Income After Taxes (NIAT), subtract all expenses and taxes from the total revenue. Expenses may include costs such as salaries, rent, and utilities. Insurance premiums also fall into this category, so what a company pays for business insurance shows up in its NIAT calculation. For smaller companies, small business insurance costs can vary widely by industry and coverage type, so it’s a line on the income statement worth keeping an eye on.

A company discloses its NIAT to shareholders through its financial statements. This information helps shareholders understand their potential earnings from shares and indicates whether the company’s stock value is likely to rise or fall.