Cash Tax Rate
Calculate the cash tax rate, which measures the percentage of pretax income that is actually paid out in cash taxes, as opposed to the accrual-based effective tax rate.
The formula is as follows:
\[\text{Cash Tax Rate} = \text{Income Taxes Paid} / \text{Income Before Tax}\]Also known as: cash effective tax rate.
Cash Tax Rate in Python
get_cash_tax_rate is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_cash_tax_rate as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
cash_tax_rates = toolkit.ratios.get_cash_tax_rate()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 0.2324 | 0.1643 | 0.1642 | 0.2114 | 0.3267 |
| TSLA | 0.0884 | 0.0877 | 0.1122 | 0.1481 | 0 |
Parameters
get_cash_tax_rate accepts the following parameters:
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.