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Sole trader tax calculator 2025-26

Free Australian sole trader tax calculator for 2025-26. Enter what you expect to earn and spend in the business, add any wages from a job on the side, and get an estimate of your income tax, Medicare levy, effective tax rate and the amount to put away every month so the tax bill never surprises you.

It uses the 2025-26 resident individual rates. The ATO confirms 2026-27 rates each year, so check ato.gov.au before you rely on the numbers for a new financial year.

Your numbers

Total sales or fees you expect to invoice this financial year.

Deductible costs: software, tools, insurance, phone, travel, home office and so on.

Salary or wages from a job alongside the business. Leave blank if none.

Registered for GST?

Registration is compulsory once turnover reaches $75,000 a year.

Most residents pay it. The low-income reduction is ignored here.

Set aside for tax
$1,099 per month
or $254 per week, $13,188 for the year
Taxable income
$85,000 income less $15,000 expenses
$70,000
Estimated income tax
$11,788
Medicare levy (2%)
$1,400
Total estimated tax
$13,188
Effective tax rate
Total tax as a share of taxable income
18.8%
Estimate only, not tax advice. This uses the 2025-26 resident individual rates. Confirm the 2026-27 rates on the ATO website before relying on them for the current year. It does not include PAYG instalments you have already paid, tax offsets (including the low income tax offset), HELP or other study loan repayments, super contributions, the Medicare levy surcharge, the Medicare levy low-income reduction, or private health insurance. Your actual tax bill depends on your full return.

Email me these results

The numbers above, then a few short emails on getting your BAS done. Unsubscribe any time.

How it works

  • Taxable income is your business income minus business expenses, plus any other employment income. Sole traders pay tax at individual rates on the profit, not on turnover.
  • Income tax is worked out band by band using the 2025-26 resident rates, then the 2% Medicare levy is added on top if you leave it switched on.
  • If you also earn wages, your employer already withholds tax on that part. The set-aside figure is the extra tax your business adds, split into a monthly and weekly amount so you can transfer it as income lands.

2025-26 resident tax rates

The rates used by this calculator. They apply to Australian residents for tax purposes and exclude the Medicare levy. Confirm the 2026-27 rates on the ATO site.

Taxable incomeTax on this income
$0 to $18,200Nil
$18,201 to $45,00016c for each $1 over $18,200
$45,001 to $135,000$4,288 plus 30c for each $1 over $45,000
$135,001 to $190,000$31,288 plus 37c for each $1 over $135,000
$190,001 and over$51,638 plus 45c for each $1 over $190,000
Related guide
Setting aside money for tax as a sole trader

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