Know Your Tax Before
You Earn It
Free sole trader tax calculator with 2025-26 ATO rates. Enter your income and expenses, see your tax, Medicare levy, super, and take-home pay instantly.
Your Income & Expenses
Options
Your Tax Breakdown
📈
Enter your income to see your tax estimate
Estimates based on 2025-26 ATO tax rates. This is not financial advice. Actual amounts may vary. Consult a registered tax agent for your specific situation.
How It Works
1. Enter Your Numbers
Type in your annual gross income and business expenses. The calculator uses your taxable income (income minus expenses) to work out your tax.
2. Choose Your Options
Toggle Medicare levy, HELP debt repayments, and super contributions. Each option adjusts your results instantly so you can see exactly what you owe.
3. See Your Take-Home
Get a full breakdown of income tax, levies, and contributions. See your effective tax rate plus weekly and monthly take-home pay.
2025-26 Tax Rates at a Glance
Tax-Free Threshold
The first $18,200 you earn is tax-free. This applies to all Australian residents for tax purposes, including sole traders.
Medicare Levy
An additional 2% on your taxable income to fund Australia's public health system. Reduced for low-income earners under $26,000.
Super for Sole Traders
As a sole trader, super is optional but tax-deductible. The minimum employee rate is 11.5% for 2025-26. Contributions reduce your taxable income.
Frequently Asked Questions
How accurate is this calculator?
This calculator uses the official 2025-26 ATO tax brackets and Medicare levy rates. It provides a good estimate for planning purposes, but your actual tax may vary based on offsets, deductions, and other factors. Always consult a registered tax agent for your tax return.
Do sole traders need to pay super?
Sole traders are not legally required to pay super for themselves, but it is strongly recommended. Contributions are tax-deductible up to $30,000 per year (the concessional cap for 2025-26), which can reduce your taxable income and your tax bill.
When do I need to register for GST?
You must register for GST if your annual turnover (gross income, not profit) is $75,000 or more. If you export goods or services, those sales are generally GST-free. You can voluntarily register below the threshold to claim GST credits on purchases.
What business expenses can I claim?
Common sole trader deductions include home office costs, vehicle expenses, equipment and tools, phone and internet, insurance, professional development, and accounting fees. The expense must be directly related to earning your income. Check our deductions guide for a full list with typical amounts.
How is HELP/HECS repayment calculated?
HELP repayments are based on your repayment income (taxable income plus other amounts). For 2025-26, repayments start at 1% when your income exceeds $54,435 and increase on a sliding scale up to 10% for incomes above $151,201. The repayment is calculated on your entire income, not just the amount over the threshold.