Franking Credit Calculator
Enter your dividend and franking percentage to estimate your franking credit, grossed-up income, and whether you receive a refund or owe extra tax at your marginal rate.
A franking credit (imputation credit) is the company tax already paid on a franked dividend, which you can claim against your own tax. To work it out, multiply the cash dividend by the company tax rate divided by (1 − the company tax rate), then by the franking percentage. For a fully franked dividend from a 30%-taxed company that is simply dividend × 30 ÷ 70 — so a $700 fully franked dividend carries a $300 franking credit and is worth $1,000 grossed-up. Figures are an estimate, not tax advice — see the ATO on franking credits.
How franking credits are calculated
Australia’s dividend imputation system credits shareholders for company tax already paid on profits, so the same income isn’t taxed twice. The franking credit attached to a dividend is:
franking credit = dividend × (company tax rate ÷ (1 − company tax rate)) × franking %
Worked example (30%, fully franked): you receive a $700 fully franked dividend from a company taxed at 30%. The gross-up factor is 30 ÷ 70 = 0.428571, so the franking credit is $700 × 0.428571 = $300.00 and the grossed-up income is $700 + $300 = $1,000.00.
So the pre-tax profit behind your $700 cash was $1,000, on which the company already paid $300 of tax — the credit you can claim. Read the full franking credits explainer.
How to calculate your franking credit refund
The franking credit is a tax offset, not a deduction — it reduces the tax you owe dollar-for-dollar, and any excess is refunded to resident individuals and complying super funds.
- Add the franking credit to your cash dividend to get your grossed-up income.
- Work out tax on the grossed-up income at your marginal rate.
- Subtract the franking credit from that tax.
- A positive result is extra tax to pay; a negative result is a refund.
Worked example using the $1,000 grossed-up figure above and its $300 credit:
| 0% marginal rate | Refund $300 |
| 15% | Refund $150 |
| 30% | Nil |
| 37% | Pay $70 |
| 45% | Pay $150 |
Rates are the 2026–27 resident marginal rates and this table excludes the Medicare levy. Always check current rates on the ATO individual income tax rates page.
Fully franked vs partially franked dividends
The franking percentage tells you how much of the dividend carries a credit. A fully franked dividend (100%) has company tax paid on all of it; a partially franked dividend has a credit only on the franked portion; an unfranked dividend (0%) carries no credit.
Worked example (partially franked): a $700 dividend that is 50% franked from a 30%-taxed company carries a credit of $700 × (30 ÷ 70) × 0.50 = $150.00, for a grossed-up income of $850.00. Set the franking % field to match your dividend statement.
Base-rate entities (25% company tax)
Not every ASX company is taxed at 30%. A base-rate entity — broadly, aggregated turnover under the ATO threshold with no more than 80% passive income — is taxed at 25%, so its fully franked dividends gross up differently:
franking credit = dividend × 25 ÷ 75 = dividend ÷ 3
A $700 fully franked dividend from a base-rate entity carries a credit of $233.33, for a grossed-up income of $933.33. Use the company tax rate toggle to switch between 30% and 25% — applying 30/70 to a 25%-taxed company overstates the credit ($300 against $233.33 on $700). Which rate applies depends on the paying company, not on you. ATO on imputation and company tax rates.
When holding-period rules affect the credit
To claim franking credits you generally must hold the shares “at risk” for at least 45 days (90 days for certain preference shares), under the holding-period rule. A small-shareholder exemption applies if your total franking credit entitlement for the year is $5,000 or less, in which case the holding-period rule doesn’t apply — but the small-shareholder exemption does not override the “related payments” rule. This calculator estimates the credit on a dividend; it does not check eligibility.
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Frequently asked questions
How to calculate franking credits
Multiply the cash dividend by the company tax rate divided by (1 − the company tax rate), then by the franking percentage. For a fully franked dividend from a company taxed at 30%, that is dividend × 30 ÷ 70. Example: a $700 fully franked dividend = $700 × 30/70 = $300 in franking credits.
How to work out franking credits
Take your cash dividend, apply the gross-up factor for the company’s tax rate (30% gives 30/70; a 25% base-rate entity gives 25/75), and multiply by the franking percentage. A $700 fully franked dividend at 30% works out to a $300 franking credit and $1,000 of grossed-up income.
How are franking credits calculated
They represent the company tax already paid on the profit behind your dividend. The formula is dividend × (company tax rate ÷ (1 − company tax rate)) × franking %. At 30%, a $700 fully franked dividend gives $300; the grossed-up income is $700 + $300 = $1,000.
How do franking credits work
Under dividend imputation, franked dividends come with a credit for the company tax already paid. You add that credit to your dividend (grossing up), pay tax on the total at your marginal rate, then subtract the credit as an offset. If the credit is more than the tax, the excess is refunded to resident individuals and complying super funds; if less, you pay the difference.
What is the franking credit formula
franking credit = dividend × (company tax rate ÷ (1 − company tax rate)) × franking %. Fully franked at 30% simplifies to dividend × 30/70; at 25% it is dividend × 25/75.
How much is my franking credit refund
Compare the franking credit to the tax on your grossed-up income at your marginal rate. If the credit is larger, the excess is refunded. On $1,000 of grossed-up income with a $300 credit: at a 0% rate you receive the full $300 back; at 15% you get $150 back; at 30% it nets to nil; above 30% you pay the shortfall. This is an estimate — confirm with the ATO or a registered tax agent.
This calculator is a general, factual tool for Australian resident investors and provides an estimate only. It is not financial or tax advice and does not account for your full circumstances (other income, the Medicare levy, offsets, or eligibility rules). Verify against the ATO or consult a registered tax agent before acting.