Australia Sole Trader
Tax Calculator
Compare income tax, Medicare levy, automatic tax offsets and quarterly cash set-asides across two income years.
Income year
Choose the year you are estimating
2025–26 details
Estimate your tax
Australian resident, sole trader income only. The general super cap does not include any carry-forward amount.
Estimated 2025–26 result
Take-home income
$71,412
after expenses, deductible super and estimated tax
Effective tax rate
20.7%
Total tax
$18,588
Quarterly set-aside
$4,647
GST threshold
Review registration
Tax breakdown
Planning estimate only. Excludes HELP debt, business and tax losses, other income, Medicare levy surcharge, family Medicare reductions, private health circumstances and carry-forward super caps. The 2026–27 Medicare threshold is not yet published and uses the latest 2025–26 value as a proxy.
Rate comparison
Resident income tax rates
The 2026–27 change is the legislated reduction from 16% to 15% for taxable income between $18,201 and $45,000. Rates exclude Medicare levy.
| Taxable income | 2025–26 | 2026–27 |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 16c per $1 over $18,200 | 15c per $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c per $1 | $4,020 + 30c per $1 |
| $135,001 – $190,000 | $31,288 + 37c per $1 | $31,020 + 37c per $1 |
| $190,001 and over | $51,638 + 45c per $1 | $51,370 + 45c per $1 |
Calculation method
What the estimate applies
Taxable income
GST-exclusive business income less allowable expenses and deductible personal super.
Tax offsets
LITO plus an eligible 16% small business offset, both limited to income tax payable.
Medicare levy
Standard 2% levy with the latest published single low-income phase-in estimate.
Planning signals
Quarterly tax cash reserve and a GST turnover prompt, not an ATO assessment.
Common questions
Sole trader tax FAQ
How is sole trader tax calculated in Australia?
A sole trader reports net business income in their individual tax return. This estimate subtracts allowable business deductions and eligible personal super contributions, applies the selected resident income tax rates, then accounts for the low income tax offset, eligible small business income tax offset and Medicare levy.
What changes between 2025–26 and 2026–27?
For 2025–26, the resident rate from $18,201 to $45,000 is 16% and the general concessional contributions cap is $30,000. From 1 July 2026, the legislated rate is 15% and the general concessional cap is $32,500. The other resident bracket thresholds used here are unchanged.
Does the estimate include the low income tax offset?
Yes. Eligible Australian residents with taxable income up to $66,667 may receive the non-refundable low income tax offset. The maximum is $700 and it phases out as taxable income rises. It reduces income tax but cannot reduce the Medicare levy.
How is the Medicare levy estimated for 2026–27?
ATO has published a $28,011 lower threshold and $35,013 phase-in ceiling for ordinary single taxpayers for 2025–26. Until ATO publishes 2026–27 thresholds, the calculator uses those latest published values as a clearly identified planning proxy. Family, dependant, SAPTO and exemption rules are not modelled.
Does this calculator determine GST registration?
No. It flags when entered annual turnover reaches the standard $75,000 GST threshold. Actual registration depends on current or projected GST turnover over 12 months, excluded sales and special rules. Taxi and ride-sourcing operators generally need to register regardless of turnover.
What is the small business income tax offset?
Eligible sole traders may receive 16% of basic income tax attributable to net small business income, capped at $1,000. This estimate assumes the entered income is eligible business income and uses entered turnover as a proxy for the under-$5 million aggregated turnover test.
Can tradies, freelancers and ABN holders use this calculator?
Yes. Australian tradies, freelancers and other ABN holders operating as sole traders can use it for a planning estimate. Companies, partnerships and trusts use different rules. A Sole Trader Tax Deductions Checklist can help review substantiated costs such as tools, protective clothing, vehicle use, home-office expenses, software and professional fees.
Are personal super contributions tax deductible?
Eligible personal contributions may be deductible after you give the fund a valid notice of intent and receive acknowledgement. The general cap is $30,000 for 2025–26 and $32,500 for 2026–27, including employer and salary-sacrifice contributions. Eligible carry-forward contributions are outside this calculator.