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Income Taxes
 6 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense was $1.1 million and $2.9 million during the three and six months ended March 31, 2025, respectively, and $5,000 and $1.8 million during the three and six months ended March 31, 2024, respectively. The effective income tax rate was 25.1% and 19.2% for the three and six months ended March 31, 2025, respectively, and 0.7% and 18.4% for the three and six months ended March 31, 2024, respectively. The disproportionate tax rates during the three months ended March 31, 2024, were caused by the small amount of pre-tax income during the quarter and the reduction of the then-expected annual effective tax rate. 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 (dollars in thousands).
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Amount%Amount%
Federal statutory income tax expense$895 21.0 %$158 21.0 %
State income taxes, net of federal benefit116 2.7 %39 5.2 %
Permanent differences20 0.5 %36 4.8 %
Tax credits(209)(4.9)%(228)(30.2)%
Other246 5.8 %— — %
Total income tax expense$1,068 25.1 %$5 0.7 %
8. Income Taxes—continued
Six Months Ended March 31, 2025Six Months Ended March 31, 2024
Amount%Amount%
Federal statutory income tax expense$3,187 21.0 %$2,057 21.0 %
State income taxes, net of federal benefit416 2.7 %349 3.6 %
Permanent differences127 0.8 %78 0.8 %
Tax credits(979)(6.5)%(680)(6.9)%
Other164 1.1 %— — %
Total income tax expense$2,915 19.2 %$1,804 18.4 %
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, 2021, 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.