Sole Trader Tax & ABN Income Calculator
Calculate income tax, Medicare levy and net profit on ABN sole trader income after deductions.
Last reviewed by the myCalculator Editorial Team
Input Parameters
Vehicle, home office, tools, software, insurance, accounting and other deductible expenses.
Personal deductible contributions, capped at the $30,000 concessional cap.
Calculation Results
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Formula & How Sole Trader Tax & ABN Income Calculator Works
A sole trader is taxed as an individual: business profit is added to personal income and taxed at the marginal rates, plus the 2% Medicare levy. There is no company tax rate and no separate business return. Because no employer withholds PAYG, the ATO issues quarterly PAYG instalments once your tax payable passes the threshold, so setting aside tax as revenue arrives is essential. Worked example: revenue of $120,000 less $25,000 of deductions gives a taxable income of $95,000. Tax is $4,020 + 30% × ($95,000 − $45,000) = $19,020, and the 2% Medicare levy adds $1,900, so total tax is about $20,920, an effective rate of 22%. There is no PAYG withholding for a sole trader, so set money aside for the tax bill and consider PAYG instalments.
- Enter Gross Business Revenue ($) ($): Input your target parameter value.
- Enter Business Deductions ($) ($): Input your target parameter value.
- Enter Voluntary Super Contributions ($) ($): Input your target parameter value.
- Apply Formula: Calculate using
Taxable Income = Revenue - Deductions - Deductible Super | Tax = ATO brackets + 2% Medicare. - Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)
How much tax should a sole trader set aside?
As a rule of thumb, set aside 25%–30% of net profit for income tax and Medicare levy. Higher earners past the 37% bracket should reserve closer to 40%.
Can a sole trader claim super contributions?
Yes. Personal contributions are deductible up to the $30,000 concessional cap, and are taxed at 15% inside super rather than at your marginal rate.
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Authoritative Standards & Verified Reference Citations
Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
Official 2026/2027 Individual Income Tax Brackets, Stage 3 tax cuts, PAYG withholding, BAS & GST schedules.
National portal for business registration, fair work compliance, employer super guarantee rates (11.5% - 12%).
Official financial guidance on personal taxation, superannuation compounding, and business cash flow.
Dedicated Australian home loans, borrowing capacity, mortgage repayments & refinance modeling.