Sole Trader Tax Calculator
Work out your sole trader / ABN income tax for 2026-27 and — crucially — how much of every dollar to set aside, so there's no nasty surprise at tax time.
Last verified: 5 May 2026Reviewed by the Savings Mate editorial team — figures fact-checked against the ATO, Services Australia and ASIC MoneySmart.
How much tax will I pay as a sole trader?
You pay normal individual tax rates on your net profit (income minus expenses) plus the 2% Medicare levy — there is no special low business rate. Because nothing is withheld from your invoices, the trick is to set a fixed % of every payment aside as it comes in — most sole traders should bank around 20-30%. Source: ATO (2026-27 rates).
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
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