Sole Trader vs Company Tax Calculator

Compare the total tax of trading as a sole trader against a company.

Your details

Annual business profit (before tax)

Salary you'd draw from the company

Other personal income

Total tax under each structure

Annual difference in total tax

$9,450

Lower total taxCompany structure
Sole trader — total tax$51,270
Company + personal — total tax$41,820
Company tax on profit left in the company$22,500

Tax is only one part of this decision. Asset protection, retained profits, franking credits when profits are eventually paid out as dividends, and the setup and ongoing compliance costs of a company can all outweigh the tax difference. Talk to us before you restructure.

Get structure advice before you decide

This calculator gives a general estimate only. It is not personal financial, credit or tax advice and does not take your objectives or circumstances into account.

What this calculator assumes

You are an Australian resident for tax purposes for the full financial year.
Rates and thresholds for the 2026-27 financial year, current as at July 2026.
The company is a base rate entity (aggregated turnover under $50 million) taxed at 25%.
Ignores franking credits on future dividends, company setup and ongoing compliance costs, and super on the salary drawn.
Rates and thresholds current as at July 2026.

This calculator provides a general estimate only. It is not personal financial, credit or taxation advice and does not take your objectives, financial situation or needs into account. Counting Beans A.F. provides financial advice under AFSL 491754 (D&M Financial Services Pty Ltd) and credit assistance under Credit Representative number 528884. Please read our Financial Services Guide and Credit Guide, and speak with us before acting on any result.

Sole Trader vs Company Tax Calculator

Your details

What this calculator assumes

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