Tax at different incomes
| Taxable income | Total tax | Take-home | Effective rate |
|---|---|---|---|
| Enter your numbers above to see this table. | |||
2026–27 resident tax rates
| Taxable income | Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% (was 16%) |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 and over | 45% |
Plus the 2% Medicare levy. The 16% rate fell to 15% on 1 July 2026 and is legislated to fall to 14% from 1 July 2027.
How it's calculated
Worked example
Chloe is a sole trader graphic designer with $80,000 taxable income in 2026–27 and no other income.
Chloe keeps $64,880, about $5,407 a month. The small business offset saves her $1,000.
What this calculator doesn't cover
- Reduced or no Medicare levy for low incomes, and the Medicare levy surcharge for higher earners without private hospital cover.
- HELP/study loan repayments, other income, and other offsets.
- Foreign residents and working holiday makers, who have different rates.
Frequently asked questions
Do sole traders pay tax differently from employees?
The rates are the same, but no one withholds tax from your income. You pay when you lodge your return, and the ATO may ask you to pay quarterly PAYG instalments.
Who can claim the small business income tax offset?
Sole traders, and people with a share of small business income from a partnership or trust, where the business's aggregated turnover is under $5 million. It's worked out automatically when you lodge.
Do I need to pay super for myself?
No, sole traders don't have to pay super for themselves, but it's worth doing. Our voluntary super calculator shows the tax you can save.
Sources (2026–27): ATO resident tax rates, Treasury: 2026–27 tax changes, low income tax offset, small business income tax offset.