Income tax
10.5%–39%
You pay individual tax rates on net profit after deductible business expenses. Other income can push contracting profit into a higher marginal band.
Free New Zealand calculator
Contractor Tax Calculator NZ
Estimate how much a New Zealand freelancer or contractor should set aside for income tax, GST and ACC.
2026–27 rates · For NZ resident sole traders
NZ TAX BASICS
What taxes do NZ contractors pay?
A sole trader usually needs to plan for these three separate obligations. Schedular deductions and provisional tax are ways of paying income tax, not extra taxes.
GST
15%
Registration is compulsory when taxable turnover reaches or is expected to reach $60,000 in any 12 months, or when you add GST to your prices. Registered businesses generally pay GST collected less eligible input credits.
ACC levies
Industry-based
Self-employed people receive an ACC invoice covering the Earners’ levy, a BIC-based Work levy, the Working Safer levy and GST. Full-time minimum and annual maximum liable income rules can apply.
INCOME TAX
2026–27 individual income-tax bands
New Zealand tax is progressive: each rate applies only to the income inside that band.
$0 – $15,600
First income band
$15,601 – $53,500
Second income band
$53,501 – $78,100
Third income band
$78,101 – $180,000
Fourth income band
$180,001+
Top income band
CASH FLOW
Practical payment notes
Schedular payments
Some contracting work has tax withheld at source. Your IR330C rate affects cash flow, but the final tax is reconciled against your annual return.
Provisional tax
If residual income tax from your last return is over $5,000, Inland Revenue generally requires instalments during the following year.
Business structure
This calculator is for an individual sole trader. Companies, partnerships, trusts and look-through companies can have different tax treatment.
PLEASE NOTE
Before relying on the estimate
- Enter revenue and expenses excluding GST so income tax and GST are not mixed together.
- Not every expense is deductible for income tax or eligible for a GST credit. Keep invoices and records supporting each claim.
- The default ACC rate uses the average Work levy. Your actual rate depends on your BIC/CU, claims history, cover option and employment status.
- ACC levy deductibility is not reflected in the income-tax estimate, so the result is intentionally conservative.
- This calculator does not file returns or replace advice from Inland Revenue, ACC or a qualified accountant.