Australian tax · FY2025-26
Company tax rate calculator
For 1 July 2025 to 30 June 2026 a company pays 25% if it is a base rate entity and 30% if it is not. That turns on two tests, not one — turnover and passive income. Enter both and this says which rate applies and why.
FY2025-26Other years
Calculator
Not a base rate entity, so the 30% rate applies.
This is an estimate, not advice. It applies the published rate to what you enter; whether the method suits your circumstances, and whether your records support the figures, is a question for your tax agent.
Both tests, not just turnover
A base rate entity is a company that meets both tests for the year:
1. Aggregated turnover below $50,000,000. Aggregated, not the company’s own — it counts connected entities and affiliates, so a company inside a group is tested on the group’s turnover rather than its own slice of it.
2. No more than 80% of assessable income is passive income. Dividends, interest, rent, royalties, net capital gains, and distributions from a trust or partnership traceable to those. Exactly 80% still passes; 81% does not.
The second test is the one that surprises people. A company set up to hold a single rental property has almost no turnover and pays 30%, because rent is passive income and it is all of the company’s income.
The franking rate can differ from the rate paid
The rate a company franks a dividend at is its corporate tax rate for imputation purposes, and that is worked out on the previous year’s aggregated turnover, assuming this year’s passive-income proportion is the same as last year’s.
So a company that grew past $50,000,000 this year pays 30% on this year’s profit while still franking at 25% — and one that shrank below it does the reverse. The figure above assumes last year looked like the year you have entered. Where it did not, franking at the wrong rate over-franks or under-franks every distribution statement for the year.
A company has no tax-free threshold
Unlike an individual, a company is taxed on its first dollar of taxable income — there is no tax-free threshold and no progressive scale. One flat rate applies to the whole of the taxable income, which is why the answer above is a single multiplication rather than a ladder.
A company with a tax loss pays nothing and carries the loss forward, subject to the continuity of ownership and similar business tests. This page assumes a profit.
What this page does not cover
It is the company’s own tax. It does not work out what a shareholder pays on the dividend — that is the franking credit above plus the shareholder’s marginal rate, and a refund where the credit exceeds it.
Nor does it cover PAYG instalments, the company’s franking account balance, or money taken out of the company other than as a dividend — for which see the Division 7A minimum repayment.
Preparing a company return?
BeforeMay builds the working paper behind the return from the company’s own documents — the profit and loss, the reconciliation, and the schedules that feed it.
Start a case freeWhere does client data go?
Three returns free. No card.
Other calculators
- Work from home70c/hrHours at the ATO fixed rate, and what that rate already covers so the same expense isn’t claimed twice.
- Cents per km91c/kmWork-related kilometres at the ATO rate, capped at 5,000 km a car — and what it rules out claiming separately.
- Income tax16% first rateTax on a resident's taxable income, with the Medicare levy and the low income offset shown separately rather than folded into one number.
- Medicare surcharge$101k single thresholdThe surcharge for going without private hospital cover — with the family income deciding the rate and your own income carrying the charge.
- Take-home pay12% superWhat a salary is worth after tax, per pay — with the super that sits beside it and the 15% the fund takes out of that.
- Division 7A8.77% benchmarkThe minimum yearly repayment on a Division 7A loan at the year's benchmark rate — the figure that decides whether the balance is a deemed dividend.
- Non-resident tax30% no thresholdTax for a foreign resident: no tax-free threshold, no Medicare levy and no low income offset — the first dollar is taxed.
- Working holiday15% then 30%The working holiday maker scale for a 417 or 462 visa — 15% from the first dollar, then the ordinary foreign-resident steps.
- Instant write-off$20k thresholdWhether an asset is under the instant asset write-off threshold, and what the deduction is worth against a marginal rate.
- Division 293$250k thresholdThe extra 15% on super contributions once income plus contributions passes $250,000 — charged on the LESSER of the excess and the contributions.
- HELP / HECS$70k thresholdCompulsory repayment on your income — and, from FY2025-26, the marginal system that replaced a flat rate on the whole lot.