Disclaimer: This calculator provides estimates only and should not be considered financial or tax advice. Calculations use FY2025-26 tax rates and the standard company tax rate of 30%. The 45-day holding rule and other ATO conditions apply to franking credit claims. Always consult a qualified tax professional. Evercend Pty Limited does not hold an Australian Financial Services Licence.
Franking credit calculator inputs and results
Dividend details
The unfranked cash amount paid into your account.
Australian companies often pay fully franked (100%) dividends.
Your tax details
Used to calculate tax on the grossed-up dividend at your marginal rate.
Enter a dividend amount to begin
Enter the cash dividend received and franking percentage to calculate your franking credit, grossed-up income, and net tax position.
How franking credits work
This calculator works out the franking credit attached to a franked dividend, the grossed up dividend, and the effect of the franking tax offset. It shows how much company tax is passed to you as a credit, the total you include in your income, and whether the credit reduces your tax or leaves an amount that can be refunded.
How to use this calculator
Enter the dividend
Enter the cash dividend, either as a total or as a per share amount and a number of shares.
Enter the franking percentage
Enter the franking percentage. A fully franked dividend is 100% franked.
Enter the company tax rate
Enter the company tax rate used for franking, either 30% or 25% for a base rate entity.
Enter your income
Enter your other taxable income so the offset can be compared with the tax on the grossed up dividend.
Read the results
The calculator shows the franking credit, the grossed up dividend and the tax offset, and estimates any top up tax or refund.
How this calculator works
Australian company dividends are taxed under the imputation system. Tax the company has already paid can be passed to you as a franking credit attached to the dividend. The franking credit on a fully franked dividend follows the company tax rate used for franking. The ATO works out the maximum franking credit as the frankable distribution multiplied by one divided by the applicable gross up rate. The gross up rate is 100% minus the company tax rate, divided by the company tax rate. For a company taxed at 30% the gross up rate is 2.3333, so a fully franked dividend carries a franking credit of about 42.86 cents for each dollar of cash dividend. For a 25% base rate entity the credit is one third of the cash dividend. The grossed up dividend is the cash dividend plus the franking credit. You include the grossed up amount in your assessable income and then claim the franking credit as a tax offset. This is the gross up and credit approach. The offset reduces the tax on the grossed up dividend. If your marginal rate plus the Medicare levy is higher than the company rate, you pay top up tax on the difference. If it is lower, the credit can cover the tax and the excess can be refunded to an Australian resident individual. A partly franked dividend carries a proportionate credit, and an unfranked dividend carries none, so an unfranked dividend is simply taxable income.
Assumptions used
Assumptions used: an Australian resident individual who meets the rules to claim the credit; the franking percentage and company tax rate you enter; the FY2025-26 individual rates plus the Medicare levy for the top up or refund estimate. The estimate does not model the 45 day holding period rule, the 5,000 dollar small shareholder exemption, the Medicare levy surcharge, or other tax offsets. It uses the rate you enter rather than the exact figure shown on a dividend statement.
Worked example
A company taxed at 30% pays a 700 dollar fully franked dividend.
The franking credit is 700 multiplied by one divided by 2.3333, which is 300 dollars. The grossed up dividend is 1,000 dollars.
The investor includes 1,000 dollars in their income and claims a 300 dollar tax offset.
If the tax on the 1,000 dollars is more than 300 dollars the investor pays the difference. If it is less, the excess can be refunded. The calculator uses the other income you enter to work out which applies.
What changes your franking credit and offset
Several things change the size of the franking credit and the offset it generates. The main ones are:
Franking percentage
The franking percentage. Fully franked is 100%, a partly franked dividend carries a proportionate credit, and an unfranked dividend carries none.
Company tax rate
The company tax rate used for franking, either 30% or 25% for a base rate entity.
Your marginal rate
Your marginal rate. A rate above the company rate means top up tax, and a rate below can leave an amount to be refunded.
Medicare levy
The Medicare levy, which is added to the tax on the grossed up dividend.
Eligibility rules
The eligibility rules, including the 45 day holding period rule. If your total franking credits for the year are below 5,000 dollars the small shareholder exemption can apply.
HELP or HECS
A HELP or HECS debt, since the grossed up dividend is part of taxable income.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| Gross up and credit approach | You include the cash dividend plus the franking credit in assessable income, then claim the franking credit as a tax offset. | ATO, Receiving dividends and other distributions |
| Maximum franking credit formula | The frankable distribution times one divided by the applicable gross up rate. The gross up rate is 100% minus the company tax rate, divided by the company tax rate. | ATO, Allocating franking credits |
| Company tax rate for imputation | 30% for most listed companies or 25% for a base rate entity, which sets the size of the credit. | ATO, Allocating franking credits |
| Franking credit refund | When franking credits are more than the tax due, the excess can be refunded to an Australian resident individual. | ATO, Refund of franking credits for individuals |
| 45-day holding period rule | You generally hold the shares at risk for at least 45 days, excluding the days of purchase and disposal. A small shareholder exemption can apply where total franking credits for the year are below 5,000 dollars. | ATO, Individual tax return instructions, 11 Dividends |
| Imputation system | Tax the company has paid may be imputed to shareholders as franking credits. | ATO, How dividends are taxed |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
It is a credit for company tax already paid on the profit behind a dividend. It is passed to you attached to a franked dividend and can be claimed as a tax offset.
Related calculators and guides
Sources
- •ATO, Receiving dividends and other distributions
- •ATO, Allocating franking credits
- •ATO, How dividends are taxed
- •ATO, Refund of franking credits for individuals
- •ATO, Individual tax return instructions, 11 Dividends
Content reviewed and figures checked against the sources above on 10 August 2026.