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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

This calculator uses Australian rules and Australian data sources. Results may not apply outside Australia.

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

Estimated Net Take-Home Income
$74,080
Total Income Tax (Stage 3)
$19,020
Medicare Levy (2%)
$1,900
Net Business Income
$95,000
Voluntary Super Deduction
$0
Taxable Income
$95,000
Quarterly PAYG Instalment (Est.)
$5,230/qtr
Effective Tax Rate
22%
Summary: On a net business income of $95,000, your estimated Australian sole trader tax bill is $20,920 (effective rate: 22%), leaving $74,080 take-home. Quarterly PAYG instalments ≈ $5,230.
Step-by-Step Calculation Solution
1.Net Business Income = Gross Revenue - Deductions = $120,000 - $25,000 = $95,000
2.Taxable Income = Net Income - Voluntary Super = $95,000 - $0 = $95,000
3.Income Tax (ATO 2026/2027 resident brackets) = $19,020
4.Medicare Levy = $95,000 × 2% = $1,900
5.Total Tax = $19,020 + $1,900 = $20,920
6.Net Take-Home = $95,000 - $20,920 = $74,080
7.Quarterly PAYG Instalment ≈ $5,230

Formula & How Sole Trader Tax & ABN Income Calculator Works

Mathematical Formula
Taxable Income = Revenue - Deductions - Deductible Super | Tax = ATO brackets + 2% Medicare

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.

How to Calculate Sole Trader Tax & ABN Income Calculator (Step-by-Step)
  1. Enter Gross Business Revenue ($) ($): Input your target parameter value.
  2. Enter Business Deductions ($) ($): Input your target parameter value.
  3. Enter Voluntary Super Contributions ($) ($): Input your target parameter value.
  4. Apply Formula: Calculate using Taxable Income = Revenue - Deductions - Deductible Super | Tax = ATO brackets + 2% Medicare.
  5. 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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Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:

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