Tradie tax calculator.
See exactly what to put aside for income tax, the Medicare levy and GST so the ATO bill never catches you out. Built for Australian sole traders.
What you'll earn this year
Your best guess for the full financial year. Use GST-exclusive figures (the actual money, not the GST on top).
Taxable income: $90,000 (what you invoice, minus expenses)
GST
Registration is compulsory once you turn over $75,000 a year. GST you charge isn't your money — you hold it for the ATO.
About $561 a week, or $243 of every $1,000 you invoice.
- Income tax
- $17,788
- Medicare levy (2%)
- $1,800
- GST to hand back
- $9,600
Estimate only, using resident sole-trader rates for the 2025–26 financial year. Not tax advice — check with your accountant.
How to work out what to set aside
- 1
Enter what you'll invoice
Put in the total money you expect to earn for the financial year, before expenses and GST-exclusive. A rough but honest guess is fine.
- 2
Add your business expenses
Fuel, tools, insurance, materials, phone, software, your accountant. These come off your income before tax, so the more you track the less you pay.
- 3
Flick GST on if you're registered
Once you turn over $75,000 you have to register. The calculator adds the GST you collect, then takes off the GST credits on your purchases.
- 4
Read what to set aside
You get a yearly figure plus a weekly amount and what to put away per $1,000 invoiced. Move that into a separate account and tax time stops being a shock.
What the estimate covers
- Income tax at the resident sole-trader rates
- The 2% Medicare levy, with the low-income phase-in
- GST you collect, less credits on your purchases
- Your effective tax rate, not just the top bracket
- What you actually keep after tax
- A per-week and per-$1,000 amount to set aside
Read next
Tradie tax FAQ
How much should a tradie set aside for tax?+
A common rule of thumb is 25–30% of your profit, but it depends on what you earn. A sole trader on $90,000 taxable income pays about $19,600 in income tax and Medicare (roughly 22%); on $130,000 it's about $32,400 (close to 25%). If you're registered for GST you also hold the GST you charge (1/11 of your GST-inclusive sales) for the ATO on top. This calculator works out the real figure from your own numbers.
How much tax does a sole trader pay in Australia?+
Sole traders pay individual income tax on their profit (income minus expenses) at the resident marginal rates, plus the 2% Medicare levy. The first $18,200 is tax-free, then it steps up: 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that. There's no separate 'business tax' — your trade profit is just added to your personal income.
Do I pay tax on the whole amount I invoice?+
No. You only pay income tax on your profit — the money you invoice minus your deductible business expenses. Keeping good records of fuel, tools, insurance and materials directly lowers your tax bill, which is why it pays to track every receipt.
When do I have to register for GST?+
Once your business turns over $75,000 or more in a year, GST registration is compulsory. After that you add 10% GST to your invoices, hand it to the ATO each BAS, and can claim back the GST on your business purchases. Under $75,000 it's optional.
Is the GST I charge my money?+
No, and it's the number one thing that catches tradies out. GST you charge a customer is collected on behalf of the ATO — you're just holding it. Set it aside the moment it lands so it's there when your BAS is due, otherwise it feels like a pay cut every quarter.
Does this calculator include HECS or other debts?+
No. It covers income tax, the Medicare levy and GST for a resident sole trader. If you have a HECS/HELP debt or other adjustments your set-aside should be a bit higher — your accountant can fine-tune it. Treat this as a solid starting estimate, not tax advice.
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