Company tax calculator Australia
Find the 25% or 30% company tax rate, estimate tax and after-tax profit, then optionally test a dividend against the company's actual franking account balance.
Based on ATO company tax and imputation guidance. Assumes an Australian resident company subject to the general 25% or 30% rates.
Choose the income year for the company tax estimate.
Company's taxable income for the financial year.
Total annual turnover including connected entities. Must be under $50M for the 25% rate.
Percentage of assessable income that is base rate entity passive income (interest, dividends, rent, royalties, net capital gains). Must be 80% or less for the 25% rate.
Cash dividend you want to test against the franking account.
Use the actual credit balance immediately before the dividend—not this year's estimated tax.
Defaults to this estimate's rate. Confirm it using the prior year's turnover and passive-income position—it can differ from this year's tax rate.
Next best steps
Enter company details to calculate tax
Business calculators: Franking credits calculator, Trust distribution tax calculator, BAS calculator, Division 7A calculator, Sole trader tax calculator
Company tax rates in Australia
Australia has two company tax rates. The rate that applies to your company depends on its aggregated turnover and the proportion of its income that is passive.
| Company Type | Tax Rate | Criteria |
|---|---|---|
| Base rate entity | 25% | Aggregated turnover < $50M AND passive income ≤ 80% |
| All other companies | 30% | Turnover ≥ $50M OR passive income > 80% |
What is a base rate entity?
A company is a base rate entity if it meets both of the following conditions in the income year:
1. Aggregated turnover is less than $50 million, AND
2. No more than 80% of assessable income is base rate entity passive income
If either condition is not met, the company pays the full 30% rate.
What counts as passive income?
— Interest income
— Dividends and franking credits
— Rent and royalties
— Net capital gains
— Income from partnerships or trusts attributable to passive sources
Active business income (sales revenue, fees for services, manufacturing income) is not passive income.
How franking credits work
A franking account operates on a tax-paid basis. Credits generally arise when the company pays income tax or PAYG instalments—not when this calculator merely estimates a liability. Franked distributions and tax refunds can create debits, so use the company's actual rolling balance when testing a dividend.
Estimated credit when tax is paid = Estimated company tax
Maximum credit per $1 dividend = Imputation rate ÷ (1 − imputation rate)
At 25%: $0.3333 franking credit per $1 dividend
At 30%: $0.4286 franking credit per $1 dividend
Shareholders include the grossed-up dividend (cash dividend + franking credits) in their taxable income and receive a tax offset for the franking credits. If the offset exceeds their personal tax liability, they may receive a franking credit refund.
Worked example: tax estimate plus a separate franking balance
Company tax: $500,000 × 25% = $125,000
After-tax profit: $500,000 − $125,000 = $375,000
Actual franking account balance entered: $50,000
Fully franked dividend capacity at 25%: $50,000 × 75/25 = $150,000
A $200,000 dividend would need $66,666.67 to be fully franked at 25%. With a $50,000 balance, the estimate attaches $50,000, leaving a $50,000 unfranked cash portion and a $250,000 grossed-up amount.
Classification check: If the company is near either BRE boundary, confirm aggregated turnover for connected entities and classify BRE passive income carefully. For dividend planning, also confirm the prior-year facts used for the corporate tax rate for imputation purposes.
25% vs 30% company tax rate
The difference between the two rates changes estimated company tax. It does not, by itself, establish the company's current franking account balance:
| Taxable Income | Tax at 25% | Tax at 30% | Difference |
|---|---|---|---|
| $100,000 | $25,000 | $30,000 | $5,000 |
| $250,000 | $62,500 | $75,000 | $12,500 |
| $500,000 | $125,000 | $150,000 | $25,000 |
| $1,000,000 | $250,000 | $300,000 | $50,000 |
| $5,000,000 | $1,250,000 | $1,500,000 | $250,000 |
What this calculator includes
— Company tax at 25% (BRE) or 30% (full rate) for 2025-26 and 2026-27
— Base rate entity eligibility check
— After-tax profit calculation
— Potential credit when estimated tax is paid
— Dividend test using an entered franking balance and imputation rate
What this calculator does not include
— Prior year tax losses carried forward
— R&D tax incentive offsets
— Small business tax offset (for sole traders)
— Franking deficit and over-franking tax
— Benchmark franking percentage and available-profits rules
— International tax, capital allowances and depreciation
This calculator provides an estimate for planning purposes. Consult a registered tax agent for your company's specific circumstances.
What is the company tax rate in Australia for 2026-27?
What is a base rate entity?
How do franking credits work?
How is the fully franked dividend capacity estimated?
What counts as base rate entity passive income?
What is aggregated turnover?
Tax Accuracy & Sources
Calculates company tax at 25% or 30% and tests a dividend against an entered franking account balance. It distinguishes estimated tax from a tax-paid account balance and does not cover offsets, losses, benchmark franking, available-profits, deficit tax, or international rules.