Sole Trader Tax Set-Aside Calculator (2026-27)
Estimate how much of your ABN profit to put aside for income tax and Medicare at 2026–27 ATO resident rates, and add any GST you owe.
Last updated 29 Oct 2026Figures for 2026-27Sources: ATO, SRO Victoria, ASIC Moneysmart
Your results
- Set aside from each dollar of profit
- Estimated tax from business profit
- Per month
- Small business offset applied
- GST to hold for BAS
- Total set-aside / yr
Not financial or tax advice. This is a general estimate from the figures you enter. It does not consider your personal circumstances. Check with a registered tax agent or licensed adviser before acting.
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How it's calculated
- Tax with business = income tax on (profit + other income) − LITO + Medicare levy.
- Tax without business = the same calculation on other income alone.
- Small business offset = 16% × basic tax × (profit ÷ total taxable income), capped at $1,000. This is a simplified proportion.
- Set-aside = tax with business − tax without business − offset.
- Total = set-aside + GST collected.
| Taxable income | Tax |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c per $ over $18,200 |
| $45,001 – $135,000 | $4,020 + 30c per $ over $45,000 |
| $135,001 – $190,000 | $31,020 + 37c per $ over $135,000 |
| $190,001+ | $51,370 + 45c per $ over $190,000 |
Worked example
$90,000 profit and no other income: tax of $17,520 plus $1,800 Medicare comes to $19,320. Less the $1,000 small business offset, that's $18,320, or 20.4% of profit. Put aside about $1,527 a month.
Sources
- ATO: Tax rates for Australian residents (2026–27 rates).
- ATO: Medicare levy reduction for low-income earners. The calculator uses the latest published single thresholds, $28,011 and $35,013. 2026–27 thresholds may change once they're legislated.
- ATO: Low income tax offset ($700 maximum).
- ATO: Small business income tax offset (16%, $1,000 cap).
Last checked 29 October 2026. Assumes a full-year resident individual. Excludes HELP, the Medicare levy surcharge, family thresholds, PSI rules and PAYG credits.
FAQ
How much tax should a sole trader put aside?
There's no fixed percentage, because tax is progressive and depends on your other income. Use your profit (income minus deductible expenses), not your turnover. This calculator estimates the extra tax your business profit adds.
Do I set aside the GST I collect?
Yes, but keep it separate. GST you collect is paid to the ATO on your BAS and isn't income. Enter it in the GST field to add it to your total set-aside.
What are the 2026–27 tax rates?
For residents: nil up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that, plus the 2% Medicare levy (ATO).
What is the small business income tax offset?
Eligible sole traders with aggregated turnover under $5 million can reduce tax by 16% of the tax on their net small business income, up to $1,000 a year (ATO).
When will I have to pay quarterly?
Once you've had business income, the ATO may put you into PAYG instalments, which are paid quarterly or annually. Setting aside each payday covers them.