Total Income Tax Expense

Definition: Total Income Tax Expense (also called Income Tax Provision) is the total tax expense reported on the income statement for a period, equal to Curren…

Total Income Tax Expense (also called Income Tax Provision) is the total tax expense reported on the income statement for a period, equal to Current Tax Expense + Deferred Tax Expense. Current tax is the amount payable to taxing authorities for the period based on taxable income. Deferred tax reflects the future tax consequences of temporary differences between book and tax bases of assets and liabilities, plus operating loss and tax credit carryforwards. Total Income Tax Expense divided by Pretax Book Income equals the Effective Tax Rate.