Calculate your tax · 2026-27
Sole Trader & Contractor Tax Calculator
With $120,000 in invoiced income and $15,000 in expenses, your net business income is $105,000. After tax, super, and study loan, you will take home $81,880.00. Set aside about 19.27% of each invoice (or $192.67 per $1,000 invoiced) for tax.
Your tax and take-home
$81,880.00
Cash in the bank after tax
| Invoiced income | $120,000.00 |
|---|---|
| Business expenses | -$15,000.00 |
| Net business income | $105,000.00 |
| Plus other income | $0.00 |
| Less super contribution | -$0.00 |
| Taxable income | $105,000.00 |
| Tax breakdown | |
| Income tax | -$22,020.00 |
| Less: Low income tax offset | +$0.00 |
| Less: Small business offset | +$1,000.00 |
| Medicare levy | -$2,100.00 |
| Study loan repayment | -$0.00 |
| Total tax & levies | -$23,120.00 |
| Take-home from invoices | $81,880.00 |
Tax to set aside
| Per month | $1,926.67 |
|---|---|
| Per quarter | $5,780.00 |
| Per $1,000 invoiced | $192.67 |
| Percentage of invoices | 19.27% |
GST registration required. Your turnover is $$75,000 or more, so you must register for GST. This adds 10% on top of your invoices and is not income.
If you were an employee
To take home the same $$81,880.00 as a contractor, you would need an employee salary of $$108,060 a year. However, an employee also receives $$12,967.16 in employer super and paid leave, so a contractor typically charges more per hour.
How to use this calculator
Enter your annual turnover (invoiced amount) in the "invoiced income" field. This is the money your clients pay you, before GST and before any tax. Add any business expenses like materials, equipment, office rent, professional fees or home office. Any other income (salary from a job, rental income, dividends) goes in "other income".
The calculator shows your total tax for the year, including income tax, Medicare levy, study loan repayment (if you have one), and the small business income tax offset (if it applies). It also calculates how much to set aside each month or per invoice.
Common questions
How much tax should I put aside as a sole trader?
It depends on your income and how much you have already withheld. One way is to calculate your expected tax bill on your net business income plus any other income, then set aside enough each pay to cover it by tax time. On $120,000 invoiced and $15,000 expenses, that is about $23,120.00 for the year, or $1,926.67 per month. A safer approach is to budget a percentage of invoices: from here, put aside 19.27% of each invoice, or $192.67 per $1,000 invoiced.
Do I need to register for GST?
If your business turnover (revenue before tax) is $75,000 or more in a 12-month period, you are required to register for GST. Once registered, you add 10% GST to your invoices and report it to the ATO on your business activity statement. If you have registered, do not count GST as your income when using this calculator.
Do contractors get superannuation?
Not automatically. Your clients do not have to pay super because you are not their employee. However, you can contribute to your own super and claim the contribution as a tax deduction (up to the annual caps set by the ATO). That deduction reduces your taxable income, which is why this calculator includes a field for your super contribution.
What is the small business income tax offset?
It is a 16% tax offset on the income tax you pay on your net small business income, capped at $1,000 per year. It applies to unincorporated businesses with turnover under $5,000,000: sole traders, and individuals with a share of a partnership's or trust's net small business income. The offset reduces your tax bill after it has been calculated; this calculator applies it automatically.
More ways to check your pay
How this is worked out
- Net business income is invoiced income less expenses.
- Taxable income is the net business income plus any other income, less any deductible super contributions.
- Income tax is calculated using the 2026-27 resident tax brackets and the low income tax offset (LITO).
- The small business income tax offset is 16% of the income tax on net business income, capped at $1,000, for businesses with turnover under $5 million.
- Medicare levy is 2% of taxable income (with a low-income shade-in below the threshold).
- Study loan repayment is the ATO's compulsory repayment if you have a HECS-HELP or other study loan.
- Set-aside percentage is the share of each invoice that should be reserved for tax: (total tax − tax on other income) ÷ invoiced income.
- GST registration is required if annual turnover is $75,000 or more.
- The employee comparison shows the salary an employee would need to take home the same amount, excluding the value of employer super and paid leave.
Estimate only, not financial or tax advice. Consult a tax professional before relying on this. See our methodology.