AU Franking Credits Calculator 2026/27
Calculate the tax impact of franked dividends under Australia's dividend imputation system. Enter your cash dividend, franking percentage, and other income to see grossed-up amounts, credits used, and any refund due.
How franking credits (dividend imputation) work
Australia's dividend imputation system prevents double taxation of corporate profits. When an Australian company pays tax on its profits, it can attach franking credits to dividends it pays to shareholders. These credits represent the tax already paid by the company. As a shareholder, you include the grossed-up dividend (cash dividend + franking credits) in your taxable income, then use the franking credits to offset your personal tax liability.
If your franking credits exceed your additional tax liability from the dividend, the excess is refundable — meaning you can receive a refund from the ATO. This is particularly beneficial for low-income earners and self-managed super funds (though different rules apply for super funds from 2020).
2026/27 franking credit formula: Franking Credit = Cash Dividend × (companyTaxRate ÷ (1 − companyTaxRate)) × frankingPercentage. Fully franked at 25% corporate rate gives credits of 33.3% of cash dividend. Fully franked at 30% gives credits of 42.9% of cash dividend.
AU Franking Credits Calculator 2026/27 — Dividend Imputation
Free Australian franking credits calculator. Calculate grossed-up dividends, imputation credits, and tax refunds from fully and partially franked dividends.
Breakdown of Grossed-Up Dividend ($1,333)
Cash Dividend vs Franking Credits
Tax Outcome: Without Franking vs With Franking
Understanding your results
Cash Dividend is the amount you receive in your bank account. The Franking Credits represent tax the company has already paid. The Grossed-Up Dividend is the sum of both — this is what you include in your taxable income. Additional Tax on Dividend is the extra tax you pay on the grossed-up amount at your marginal rate (minus Medicare Levy where applicable). Franking Credits Used shows how much of the credits offset your additional tax, and any Refund Due is the excess credits refunded to you.
Franking percentage explained
A fully franked dividend (100% franking) means the company has paid tax on all the profits used to pay the dividend. A partially franked dividend (e.g., 50%) means only half the profits were taxed at the corporate level — often because the company has some tax offsets or operates in different tax jurisdictions. The franking percentage directly scales the franking credits attached to your dividend.
Company tax rates
Base rate entities (small businesses with aggregated turnover under $50 million) pay a 25% corporate tax rate and can attach franking credits at 25%. Large businesses pay 30% and attach franking credits at 30%. The calculator supports both rates and adjusts the franking credit calculation accordingly.