Sole Trader Tax Calculator Australia
Running an ABN under your own name? Enter your income and expenses and we'll estimate your net profit, income tax and Medicare levy, your effective rate, and whether a company structure might save you anything.
- Business income$0
- Less expenses$0
- Less personal super$0
- Plus other income$0
- Taxable income$0
- Income tax$0
- Medicare levy (2%)$0
- After-tax income$0
- Effective tax rate0%
- Company tax on profit (25%)$0
- Difference vs sole trader$0
Enter your business income to see your estimate.
Want this nailed down, with every deduction claimed and the structure question answered properly?
Get a fixed-price quote →General information only, current for the 2025-26 financial year. This estimate uses resident tax rates, ignores the low-income tax offset, HELP/HECS, the Medicare levy surcharge, PAYG instalments and prior-year losses, and is not personal tax advice. The company comparison shows tax at the company level only. For a position you can rely on, talk to us.
A Few Things This Calculator Assumes
How is a sole trader actually taxed?
As a sole trader, your business profit is just your income. There is no separate business tax return: net profit (income minus deductible expenses) is added to any other income and taxed at the individual resident rates. The first $18,200 is tax-free, then it steps up from 16% to 45%. This calculator works the tax out band by band, the same way the ATO does.
What does the tax-free threshold save me?
The first $18,200 you earn each year is taxed at 0%. The result panel shows the dollar value of that threshold so you can see the benefit baked into the brackets. Note that if you have more than one income source, the threshold is only claimed once across all of them.
When does a company actually save tax?
A company pays a flat 25% (for a base rate entity), which looks cheaper than the top individual rates. But that is only the first layer: you still pay tax when the profit reaches you as wages or dividends. A company tends to help when you are reinvesting profit or earning well above what you draw, and it brings extra cost and admin. The comparison here flags the gap; the right call needs a proper chat about your situation.
What about super and the concessional cap?
Sole traders are not required to pay themselves Super Guarantee, but personal concessional contributions you claim are deductible and reduce your taxable income, up to $30,000 a year. Go over the cap and the excess is taxed differently, so we flag it. If your income is above $250,000, Division 293 adds an extra 15% on your concessional contributions.
Stop Guessing What You Owe
Book a 30-minute call with a senior accountant. We'll check your numbers, claim every deduction you're entitled to, and tell you clearly whether your structure still fits.
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