Sole trader tax calculator

As a sole trader nobody withholds tax from your business income. This works out how much to put aside, taking into account any wage you also earn.

Rates checked against ATO and official sources on 26 September 2026. How we calculate

Results update as you type.

Set aside for tax20% of profit$4,580 each quarter · $18,320 for the year

Taxable income	$90,000
Income tax (after low income offset)	$17,520
Small business income tax offset	−$1,000
Medicare levy	$1,800
Total tax for the year	$18,320
Still to pay after withholding	$18,320
Left after tax	$71,680

Your turnover is $75,000 or more, so you must register for GST. GST you collect is not your income.

Sole traders pay no super guarantee on their own income. Consider setting aside super for yourself too.

How it's calculated

A sole trader's business profit is added to any other income and taxed at individual rates. Two things then change the result:

Small business income tax offset: 16% of the tax on your business profit, up to $1,000, if turnover is under $5 million.
Other income: business profit sits on top of your wage, so it is taxed at your highest rate. The "set aside" figure is only the extra tax caused by the business.

Once your tax bill is large enough, the ATO puts you into PAYG instalments and asks for tax quarterly, based on your last return.

What percentage should a sole trader save for tax?

Commonly 20–30% of profit, but it depends on your total income. The calculator gives your own figure.

Do sole traders pay super?

Not compulsorily on their own income, but personal contributions can be tax-deductible.

When do I need to register for GST?

When your turnover reaches $75,000 in a year.