How are dividends taxed in Australia?

Australia uses dividend imputation. A franked dividend carries a franking credit for company tax already paid at 30%. You are taxed on the grossed-up dividend (cash plus credit) at your marginal rate, then the franking credit is subtracted, avoiding double taxation.

What is a franking credit?

A franking credit (imputation credit) represents the 30% company tax already paid on the profit behind your dividend. For a fully franked dividend, the credit equals cash dividend × 30/70. It is added to your income and then offsets your tax bill dollar-for-dollar.

Can I get a refund of franking credits?

Yes. If your franking credits exceed the tax due on the grossed-up dividend — common for low-income earners and many retirees — the excess is refunded by the ATO. This calculator shows a negative tax figure as a refund.

What about unfranked dividends?

Unfranked dividends carry no franking credit, so the full cash amount is simply added to your income and taxed at your marginal rate with no offset. Set the franking percentage to 0 to model this.

Does this calculator store my data?

No. All calculations run locally in your browser; nothing is uploaded, so your figures stay private.

Australia Dividend Tax Calculator

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This Australia dividend tax calculator models the dividend imputation (franking credit) system. Unlike a simple withholding tax, Australia attaches a credit for the 30% company tax already paid, grosses up your dividend, taxes it at your marginal rate, then lets the credit offset the bill — sometimes producing a refund.

How it works

For a franked dividend, the franking credit is:

franking credit = cash dividend × (30 / 70) × franking %

The grossed-up (taxable) dividend is the cash dividend plus the franking credit. That grossed-up amount is added to your other income and taxed using the 2024-25 resident brackets:

$0 – $18,200      0%
$18,201 – $45,000  16%
$45,001 – $135,000 30%
$135,001 – $190,000 37%
$190,001 +          45%

Finally the franking credit is subtracted from the tax on the grossed-up dividend. If the credit is larger than the tax, the excess is refundable.

Example

You receive a $700 fully franked dividend. The franking credit is 700 × 30/70 = $300, so the grossed-up dividend is $1,000. If your marginal rate is 30%, tax on $1,000 is $300 — exactly offset by the $300 credit, so no extra tax is due. A retiree on 0% would instead get the full $300 refunded.

Notes

This estimate excludes the 2% Medicare levy and assumes resident individual rates. Partially franked dividends use the franking percentage you enter. Always check your annual dividend statement and confirm with a tax agent.