Australia Dividend Tax Calculator

How dividend tax works in Australia

Australia uses a dividend imputation system: companies pay tax on profits, and shareholders receive franking credits that offset their personal tax on dividends. Fully franked dividends often result in little or no extra tax for many taxpayers. This calculator uses an approximate 15% effective rate for franked dividends.

Unfranked or partly franked dividends are taxed at your marginal income tax rate. The effective outcome depends on your total income and the mix of franked and unfranked dividends.

Key differences from other countries

Australia’s imputation system means franked dividends are largely tax-neutral for many investors; effective tax differs sharply from countries that tax dividends as ordinary income.

Example calculation

On A$8,000 gross dividends (single filer, 2026), tax in Australia is about A$1,200, leaving approximately A$6,800 after tax (effective rate 15.00%). Use the calculator above for your own amount and filing status.

Methodology & sources

Rates and allowances are from ATO – dividend imputation and franking for 2026. This calculator is for estimation only and does not constitute tax or investment advice; withholding and final tax can differ. Consult a qualified advisor or https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation for your situation.