Company (Pty Ltd) vs Sole trader: tax comparison 2026
Compare the tax burden of the two legal forms with your own numbers, using each calculator below.
| Company (Pty Ltd) | Sole trader | |
|---|---|---|
| Description | Base rate entity 25% (turnover <50M); dividend imputation. | Progressive income tax + Medicare levy 2%. Real income. |
Official sources
- Australian Taxation Office (ATO) — Corporate & personal income tax