Sole Trader Calculator
Calculate taxes, social security and net income for sole trader!
Simplified model: 15% tax on the annual tax base after deductible self-insurance contributions (ЗДДФЛ art. 28). Not a tax ruling.
Methodology
- Sole trader estimate — tax and contributions
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What does the sole trader calculator calculate?
The sole trader calculator estimates taxes, social security and net income for sole traders (ET) with a simplified 2026 model. It applies 15% annual tax on the tax base (Personal Income Tax Act art. 28) after deductible self-insurance contributions, and calculates contributions on a chosen monthly base between the period min and max — not as a flat percentage of accounting profit. Indicative only.
How to use the sole trader calculator?
Using the calculator is very simple. Follow these steps:
- Select the 2026 insurance period: H1 (min €550.66) or H2 from 1 August (min €620.20).
- Enter revenue and expenses: Annual amounts in euro.
- Optional monthly insurance base: Defaults to the period minimum; clamp applies to the legal max.
- Choose coverage: Pension + health (27.8%) or with optional sickness (31.3%).
- Calculate: Review tax base, 15% tax, annual contributions, and net income.
Example with specific numbers
Example (H1 2026): revenue €25,565, expenses €15,339, min base €550.66, pension+health 27.8%
- Accounting profit: 25,565 − 15,339 = €10,226
- Annual contributions: 550.66 × 27.8% × 12 ≈ €1,837
- Tax base: 10,226 − 1,837 ≈ €8,389
- Tax 15% (art. 28): 8,389 × 15% ≈ €1,258
- Net income: 10,226 − 1,258 − 1,837 ≈ €7,131
- From 1 Aug 2026 the min base is €620.20 (max €2,300).
Sources and notes
The calculator follows Personal Income Tax Act art. 28 (15% on the annual tax base) and 2026 self-employed thresholds from NSSI / state social security budget law (от 2026-01-01). Contributions are due on a chosen monthly base between period min and max, not as a percentage of profit. For complex cases, consult NAP or an accountant.
Figures are indicative under Bulgarian tax and social-security rules (NRA, NOI). See official sources below.
Sources:
- NRA – National Revenue Agency
- NOI – National Social Security Institute
- VAT Act – Bulgarian VAT law
- Local taxes act – Local taxes and fees
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Frequently Asked Questions
What is a sole trader?
A sole trader (ST) is a legal form where an individual conducts business in their own name. The owner has unlimited liability with all their assets.
What taxes does a sole trader pay?
Sole traders pay 15% annual tax on the tax base under art. 28 PIT Act, plus self-insurance contributions on a chosen monthly base within the legal min/max for the period.
How is taxable income calculated?
Taxable income = Total income - Business expenses - Deductions (children, disabilities, etc.)
What is the difference between ST, LLC, and JSC?
ST is simpler but has unlimited liability. LLC and JSC have limited liability but more complex tax structure. Use the calculator to compare.
When should I register as a sole trader?
ST is suitable for small businesses, freelancers, and entrepreneurs who want simplicity. For larger businesses, LLC or JSC may be more appropriate.