The sole trader tax calculator
Estimate only. It uses the 2026-27 resident rates plus the 2% Medicare levy and excludes the Medicare levy surcharge, low-income offsets, HECS or HELP, and PAYG instalment timing. Confirm with a registered tax agent.
Want the tax put aside and the BAS handled so there is no shock? True Tally keeps sole traders sorted on fixed monthly fees.
Book a free callSole trader tax rates, 2026-27
A sole trader is taxed as an individual, so your business profit is added to any other income and taxed at the resident rates: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000, then 45%, plus the 2% Medicare levy. There is no separate company rate; if profits grow, a company structure is worth discussing with your accountant. To price your work so there is profit left after tax, try the pricing and margin calculator.
Frequently asked questions
How much tax does a sole trader pay in Australia?
A sole trader pays individual income tax on their net business profit at the ordinary resident rates, plus the 2% Medicare levy. For 2026-27 that is nil up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. There is no separate, lower "business" tax rate for sole traders.
Do sole traders pay GST?
Only if registered. You must register for and charge GST once your GST turnover reaches $75,000. Income tax and GST are separate: you can owe income tax on your profit whether or not you are registered for GST.
Do sole traders have to pay super?
Super is not compulsory for a sole trader on their own income, but contributing to super is usually tax-deductible and worth considering. If you employ staff, you must pay their 12% super guarantee.
What is PAYG instalments and does it apply to me?
Once your business income passes a threshold the ATO asks you to pre-pay next year's tax in quarterly PAYG instalments. This calculator estimates the tax on your profit; it does not model instalment timing. Set money aside as you earn so the bill is covered.