Sole trader tax estimate
A rough idea of the tax on your business profit, so you can set money aside and avoid surprises.
Result$17,720Estimated income tax and Medicare levy on your total taxable income. Set aside about $4,430 a quarter for the business share.
Taxable income$85,000
Income tax$16,020
Medicare levy (2%)$1,700
Average rate20.8%
How we worked this out
Uses the 2026–27 resident tax rates and the 2% Medicare levy. It ignores offsets (such as the small business income tax offset), the Medicare levy surcharge, low-income reductions, HELP repayments and tax already withheld from wages, so your actual bill may be lower or higher.
Get your exact figure and a PAYG instalment plan.Sole trader tax returns
General information only, not tax advice. Source: ato.gov.au. Rates are checked on 1 July each year. Last reviewed September 2026.