Franking Credits Calculator

Calculate franking credit tax offset from Australian dividends

See how franking credits reduce your tax and understand the tax offset

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Our comprehensive Dividends Calculator includes full franking credit calculations

Calculate franking credits, grossed-up dividends, tax payable or refundable amounts, and after-tax dividend income. The calculator handles fully franked, partially franked and unfranked dividends.

What are Franking Credits?

Franking credits (also called imputation credits) are tax credits attached to dividends paid by Australian companies. When a company pays tax on its profits, it can pass these tax credits to shareholders.

If your marginal tax rate is below the corporate tax rate (30%), you may receive a refund for excess franking credits. If your tax rate is higher, you'll pay additional tax on the grossed-up dividend amount.

How Franking Credits Work

1. Grossed-Up Dividend

The dividend amount plus the franking credit equals your grossed-up dividend, which is included in your taxable income.

2. Tax Calculation

Tax is calculated on the grossed-up dividend amount at your marginal tax rate.

3. Franking Credit Offset

The franking credit is used as a tax offset, reducing your tax payable. If the credit exceeds your tax liability, you receive a refund.

Example Calculation

If you receive a $700 fully franked dividend:

Franking credit: $300 (30% of $1,000 grossed-up amount)
Grossed-up dividend: $1,000 (included in taxable income)
Tax at 32.5%: $325
Less franking credit: -$300
Tax payable: $25
After-tax dividend: $675

Use our calculator to see how this works with your specific income and tax situation.

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

Rates and thresholds last updated for the 2024–25 financial year.

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