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Australia Self-Employed & Freelance Tax Calculator (2026-27)

See what you keep as a sole trader or contractor in Australia for 2026–27: income tax after the small business income tax offset, the Medicare levy and any HELP repayment, plus what to set aside for PAYG instalments.

Updated for the 2026-27 tax year · Rates checked 14 October 2026

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Take-home pay per year$92,080
Income (revenue)$120,000
Business expenses$0
Profit$120,000
Income tax (after offsets)$25,520
Medicare levy$2,400
Take-home pay$92,080
Total tax$27,920
Tax as % of profit23.3%
Set aside each quarter$6,980
Take-home per billable hour$66.72
Equivalent employee salary$121,471
  • On $120,000 of profit you keep $92,080 a year ($7,673 a month) after tax.
  • To take home the same as an employee you’d need a salary of about $121,471.
  • Includes the small business income tax offset of $1,000 (16% of the tax on your business income, up to $1,000).
  • No employer pays your super: consider making personal concessional contributions, which you can usually claim as a tax deduction.
  • Your turnover is $75,000 or more, so you must be registered for GST. Prices you charge must include 10% GST, which is passed to the ATO and is not income.

Your result, explained

Your $120,000 of client income becomes $120,000 of profit after expenses, and you keep $92,080 after $27,920 of tax, 23.3% of profit. Nobody withholds that tax for you, so move about $6,980 into a separate tax account every quarter ($2,327 a month).

To take home the same as an employee you would need a salary of about $121,471. But employees also get paid leave, retirement contributions and often health cover, so most freelancers aim to charge 25–40% more than that. At your billable hours you currently keep $66.72 per hour worked.

Your money by period

PerProfitTaxTake-home
Year$120,000$27,920$92,080
Quarter$30,000$6,980$23,020
Month$10,000$2,327$7,673
Week$2,308$536.92$1,771

Popular amounts

How sole traders are taxed

Your business profit is added to your other income and taxed at the normal resident rates: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. The 2% Medicare levy applies too. Sole traders also get the small business income tax offset: 16% of the tax on business income, up to $1,000 a year.

Super is up to you

No employer pays the 12% super guarantee for you. Personal contributions to super can usually be claimed as a tax deduction (within the concessional cap) and are taxed at 15% in the fund instead of your marginal rate.

GST and PAYG instalments

Register for GST once your turnover reaches $75,000. After your first return showing business income, the ATO will usually put you into quarterly PAYG instalments so you pay tax as you go.

Frequently asked questions

Do sole traders pay a different tax rate?

No. Sole traders use individual tax rates. Companies pay company tax, but sole traders don’t.

What is the small business income tax offset?

A reduction of 16% of the tax on your net small business income, capped at $1,000 a year, for businesses with turnover under $5 million.

Should I put aside money for tax?

Yes. Without PAYG withholding nobody pays your tax during the year. The quarterly figure above is roughly what to put aside.

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