Sole Trader Tax Calculator Australia 2026-27
Estimate income tax on your sole trader or ABN business income for 2026-27. Enter your revenue, deductible expenses and personal super contributions to see your taxable profit, income tax, Medicare levy and net take-home.
Deductible expenses: office, equipment, travel, software, etc.
Sole traders can claim a deduction for personal super contributions.
Net Income After Tax
$75,304
Effective tax rate: 22.2%
Frequently Asked Questions
How is a sole trader taxed in Australia?
Sole traders are taxed as individuals. Your net business profit (revenue minus deductible expenses) is added to any other income and taxed at the resident tax brackets — from 0% up to 45% plus the 2% Medicare levy. There is no separate business tax rate for sole traders.
What expenses can a sole trader deduct?
Common deductions include: business-use portion of home office costs, vehicle expenses (logbook method), equipment, software subscriptions, professional fees, advertising, travel, phone and internet. Personal expenses are not deductible.
Do sole traders pay GST?
You must register for GST if your annual business turnover is $75,000 or more ($150,000 for non-profits). Once registered, you collect 10% GST on taxable sales and can claim GST credits on business purchases. GST collected is not income — it passes through to the ATO.
Can a sole trader claim super contributions as a tax deduction?
Yes. Sole traders can make voluntary super contributions and claim them as a deduction — up to the $30,000 concessional contributions cap for 2025-26 (which includes any employer contributions). The super fund pays 15% contributions tax on the way in, but this is typically much lower than your marginal income tax rate.
Do sole traders pay PAYG tax?
Sole traders are not subject to employer PAYG withholding. Instead, once your estimated tax liability exceeds $500, the ATO will require you to pay quarterly PAYG instalments. You can also choose to pay voluntarily to avoid a large end-of-year tax bill.
Is sole trader income different from ABN income?
Having an ABN doesn't automatically make you a sole trader — but most sole traders use an ABN for their business. Tax on ABN income follows the same rules: it's personal income taxed at your marginal rate, with deductible business expenses reducing taxable income.