How much should you put aside for tax?
Put in what your business turns over. See what to set aside every week for income tax, GST and super, as a sole trader or through a company. Free, on your phone, no sign-up.
General information only. This is not tax, financial or legal advice, and it does not take your circumstances into account. Every figure is an estimate. Check yours with a registered tax agent. Tradie Business Build is not a registered tax agent.
Put aside every week
$0
Put in what you invoice to see your number.
This number assumes the money you invoice is money you collect in the same period. Chase late payers, or the set-aside is not sitting there when the bill lands. A planning estimate using published 2026-27 rates. General information only, not tax or financial advice. Your own figure depends on your deductions, your family situation and your timing. Check it with a registered tax agent.
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Your answers
What went into this
Planning estimate. General information only, not tax or financial advice. Check with a registered tax agent.
Set it aside the day you get paid
When you work for someone else, tax and super come out before your pay hits the bank. On your own, nobody does it for you. The whole payment lands in your account and it all looks like yours. It isn't.
- Open a second bank account just for tax, GST and super. Call it "Not mine".
- Every time a customer pays, move the percentage above into it. Same day, before you spend anything.
- Pay the tax office and your super out of that account when the bills come. No nasty surprises.
Why tradies get caught out
Your first tax bill as a sole trader can land almost a year after you start, and it covers the whole year. Then the tax office can put you on quarterly instalments for the year you are already in. Two bills, close together. Put money aside from day one and both are already covered.
Planning estimate. General information only, not tax or financial advice. Check with a registered tax agent.
The full picture
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How much tax should a sole trader put aside?
Most sole trader tradies land somewhere between 25% and 35% of their profit in income tax and Medicare levy, plus net GST on top if they are registered. The calculator works your own figure out from your own numbers using the published 2026-27 rates.
What is the company tax rate for a small trade business?
25%, if your company is a base rate entity. That means aggregated turnover under $50 million and no more than 80% of its income coming from passive sources like rent, interest or dividends. A normal trade company ticks both. Every other company pays 30%.
Do I have to pay super for myself?
No. The ATO says sole traders and partners do not have to pay super guarantee for themselves, but they can make personal contributions. Nobody else will do it for you. Putting 12% aside matches what an employer pays an employee, and contributions you claim as a deduction are capped at $32,500 for 2026-27.
When do I need to register for GST?
Once your GST turnover reaches $75,000 a year, or you expect it to. You then have 21 days to register. After that, 1/11 of every payment you collect is GST that belongs to the tax office, less the GST in what you buy for the business.
What are PAYG instalments?
Prepayments of tax on your business income, usually quarterly. The ATO enters an individual into instalments when their last return showed instalment income of $4,000 or more, tax payable on the notice of assessment of $1,000 or more, and estimated tax of $500 or more. Instalments are generally due 28 days after the end of each quarter.
What happens if I do not put it aside?
The bill still comes. The ATO charges general interest charge on what you owe, and since 1 July 2025 that interest is no longer tax deductible. Payment plans exist, but interest usually keeps running.
Is this tax advice?
No. It is a planning estimate using the published rates. Your situation will have things in it this tool cannot see. Check with your accountant or a registered tax agent.
Where the numbers come from
Checked 21 September 2026
- Income tax rates and brackets for 2026-27, and the 2% Medicare levy: ato.gov.au, Tax rates for Australian residents
- Low income tax offset, up to $700: ato.gov.au, Low income tax offset
- Small business income tax offset, 16% capped at $1,000: ato.gov.au, Small business income tax offset
- Medicare levy low income thresholds. The latest the ATO has published are for 2025-26: ato.gov.au, Medicare levy reduction for low-income earners
- Company tax rate 25% for a base rate entity, 30% for everyone else: ato.gov.au, Changes to company tax rates
- Super guarantee 12% for 2026-27: ato.gov.au, Super guarantee
- Concessional contributions cap $32,500 for 2026-27: ato.gov.au, Contributions caps
- GST registration at $75,000 turnover: ato.gov.au, Registering for GST
- Set aside one eleventh of sales less one eleventh of purchases: ato.gov.au, Paying GST and your cash flow
- BAS quarters and due dates: ato.gov.au, Due dates for lodging and paying your BAS
- PAYG instalment entry thresholds: ato.gov.au, Starting PAYG instalments
- General interest charge rates, and interest on ATO debt not being deductible from 1 July 2025: ato.gov.au, General interest charge rates and ato.gov.au, Denying deductions for ATO interest charges
Rates change. If you are reading this in a later financial year, check the links before you rely on the numbers. Planning estimate. General information only, not tax or financial advice. Check with a registered tax agent.