Business Income Tax Calculator

Choose the Business Entity and Income Year

This business income tax calculator estimates ordinary Australian company tax for 2024–25, 2025–26 and 2026–27. The company rate is 25% for a base rate entity and 30% otherwise.

A small business income tax calculator needs both the entity type and its eligibility facts. A small turnover alone does not establish the lower company rate.

Sole traders pay personal income tax. Use the income tax calculator for an individual or sole-trader estimate, including a separate assessment of any small-business income tax offset.

A partnership or trust selection produces no company estimate. Partners’ and beneficiaries’ tax positions require their own assessment. Selecting an entity does not determine legal status or concession eligibility.

This tool covers ordinary companies. Non-profit companies, life insurers, pooled development funds, credit unions and other special tax regimes require their own calculation.

Apply the Company Rate to Taxable Income

The 25% base rate applies when aggregated turnover is below $50 million and base rate entity passive income is at most 80% of assessable income. Otherwise, this ordinary-company estimate uses 30%.

The Australian Government’s company tax guidance explains both rates. Sections 23, 23AA and 23AB of the Income Tax Rates Act set out the rate and passive-income rules.

Aggregated turnover uses the relevant turnover of the company, connected entities and affiliates. Base rate entity passive income has a statutory definition. It can include interest, rent, royalties, certain dividends and net capital gains.

Enter the passive-income percentage established in the tax workpapers. Interest has statutory exceptions, and some partnership or trust distributions retain their underlying passive character. A gross investment-income label alone does not settle that classification.

Taxable income is the amount remaining after the applicable tax adjustments and deductions. Obtain it from the company tax workpapers. Accounting profit, bank deposits and retained cash each measure something different.

For example, a loan receipt increases bank deposits without becoming ordinary trading revenue. A depreciation adjustment can make taxable income differ from accounting profit. The financial statement analysis guide explains how profit, liabilities and cash movements fit together.

Compare Tax and After-Tax Profit

The fictional default company has $184,750 taxable income, $172,400 accounting profit, $2,380,000 aggregated turnover and a 12% passive-income share for 2026–27. Both base rate tests pass.

At 25%, estimated company tax is $46,188 and after-tax accounting profit is $126,213. A $36,000 PAYG instalment credit leaves an estimated balance of $10,188.

A fictional investment company has the same taxable income, accounting profit and turnover, but 92% passive income for 2026–27. It uses 30%, giving $55,425 company tax and $116,975 after-tax profit. With a $42,000 PAYG credit, the balance is $13,425.

The calculator retains precision during arithmetic and rounds displayed estimates to whole dollars. After-tax profit subtracts the estimated tax expense from entered accounting profit. PAYG credits reduce the estimated tax balance separately.

Reconcile taxable income, rate, tax and instalment credits to the company liability schedule for the same year. After-tax profit does not establish cash available for dividends or creditor distributions. Check cash, other liabilities and the applicable distribution rules separately.

Understand Credits and Unresolved Tax Positions

The only supported credit is the entered PAYG instalment credit. Basic company tax equals taxable income multiplied by the selected rate. The balance equals basic company tax less that credit.

PAYG instalments are payments towards annual income tax. Enter the net credit for the same income year from the company’s tax calculation statement. Reconcile unpaid instalment debts separately.

A negative balance indicates that the entered instalment credit exceeds this estimate. It does not confirm a refund after other tax account balances are considered.

Tax offsets, refundable credits and other assessment adjustments are outside this estimate. Assess them individually in the company tax schedule before using the final liability.

Establish any carried-forward loss deduction before entering taxable income. Disputed income characterisation, loss eligibility and beneficiary-level tax require separate assessment. Leave an unresolved input blank, rather than substituting zero.

Inputs stay in this browser tab and clear on reload. The tool does not prepare, lodge or amend a tax return.