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How much should I put aside for tax? (Australian sole traders, 2026–27)
Type in what you expect to earn this financial year. The calculator gives a rough income-tax-plus-Medicare figure and the percentage of each invoice to move into a separate tax account. It's free and needs no sign-up. Everything runs in your browser, so nothing you type is sent anywhere.
Assumes Australian resident rates for 2026–27: 0% up to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above that. It adds the 2% Medicare levy and applies the low income tax offset. It leaves out HELP repayments, the Medicare levy surcharge, the low-income Medicare reduction, super contributions and other offsets. This is an estimate and not tax advice. Check the ATO's rates or ask a registered tax agent.
The simple system most new sole traders wish they'd started with
- Open a second account called "TAX – don't touch". Each time a client pays you, move the percentage shown above into it straight away.
- Expect PAYG instalments. After your first business tax return, the ATO may put you into quarterly PAYG instalments, which are prepayments of next year's tax. The set-aside account is what pays them.
- Watch the $75,000 GST line. You must register for GST within 21 days of expecting to pass $75,000 in GST turnover over a 12-month period. Once registered, 1/11 of every GST-inclusive sale belongs to the ATO, so set that aside as well. Our GST calculator works it out.
- Keep receipts for five years. A photo in a dated folder counts. Home-office and car costs need their own records. The ATO's fixed rate for working from home is 70c an hour for 2024–25 and 2025–26 (the 2026–27 rate isn't published yet), and the cents per km car rate is 91c for 2026–27 (88c for 2024–25 and 2025–26), up to 5,000 business km per car. See our guide to work-from-home and car deductions.
- Invoice properly. An invoice should have your ABN, the date, a description and the amount, and say whether GST is included. Chase late payers politely on a fixed schedule. See what a tax invoice must show.
Related guides
- How much should I charge as a sole trader in Australia?
- GST and BAS tracker spreadsheet
- ABN and sole trader startup checklist
- GST calculator (add or remove 10%)
Want it as an offline file?
The Sole Trader Toolkit 2026–27 (US$12.99) is our own product. It includes a rate calculator, this tax set-aside calculation using 2026–27 ATO rates, and a GST tax invoice you save as a PDF. Prefer something free? Grab the free budget planner, or read the free budget template guide.
US$12.99 one-time on Whop. Instant download.
See it on Whop →General information only, not financial, tax or legal advice. Last checked 16 Nov 2026.