Breakdown of calculations
Business income$120,000
Deductions-$10,000
Other income$0
Taxable income$110,000
Sole traders and accountants
Sole Trader Tax Calculator
Estimate tax payable for an Australian sole trader using business income, deductions and individual tax rates.
Plain-English explanation
Estimate taxable business income after deductions, then apply individual tax and Medicare levy assumptions.
Assumptions are adjustable where practical. The calculator does not determine eligibility, residency, grouping, exemptions, anti-avoidance rules or every offset.
Tax payable
$25,720
Effective tax rateEffective tax rate is the estimated tax payable divided by the taxable base for this calculator. It shows the average rate across the amount being taxed, not the rate on your next dollar. Refunds and credits are shown as 0%.
23.4%
Marginal tax rate
30.0%
Tax savings / credits
$3,000
Supporting assumptions
- Sole trader income taxed to the individual
- GST and PAYG instalments excluded
Formula used
Taxable income = business income - deductions. Tax payable = individual tax on taxable income plus Medicare levy.
Worked example
A sole trader with $160,000 income and $45,000 deductions has estimated taxable income of $115,000 before personal adjustments.
ATO and revenue guidance
FAQs
Does a sole trader pay company tax?
No. Sole trader business income is generally included in the individual's tax return.
Does this include GST?
No. It estimates income tax, not GST, BAS or PAYG instalments.
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