Self-employed tax in New Zealand
Sole traders in New Zealand report business profit on their IR3 individual tax return and pay tax at personal marginal rates, plus the ACC earners' levy. GST applies once turnover reaches NZ$60,000. Here are the 2025-26 headline figures.
The headline figures (2025/26)
- Income tax 2025-26 (on net profit, no tax-free threshold): 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, then 39%.
- The ACC earners' levy (1.75% for 2026-27, up to NZ$156,641 of earnings) is collected by Inland Revenue on top of income tax.
- GST registration is compulsory once your annual turnover reaches NZ$60,000; then you charge 15% GST and file GST returns (monthly, two-monthly or six-monthly).
- Provisional tax applies from your second year once residual income tax passes NZ$5,000 — instalments toward your annual bill. A common rule of thumb is to set aside 25–30% of profit.
Quick tax estimate
A general self-employed estimate — pick your region below. Your exact New Zealand figures are listed above.
A dedicated New Zealand calculator is on the way — this gives a general estimate. Use the accurate New Zealand rates above for your filing.
Estimates use latest published figures (US 2025 brackets & 15.3% SE tax, UK Self Assessment bands + Class 4 NI, Canada federal + CPP, Germany §32a 2026 income tax + est. social & 19% VAT, GCC VAT rates). Simplified estimate for planning only — not tax advice.
New Zealand freelancer tax — FAQ
How much tax does a sole trader pay in New Zealand?
You pay individual income tax on your net business profit at marginal rates (10.5% up to $15,600, then 17.5%, 30%, 33% and 39% — there is no tax-free threshold), plus the ACC earners' levy. There is no separate company tax for sole traders.
When do I have to register for GST?
Once your annual turnover reaches or is expected to reach NZ$60,000. You then charge 15% GST on taxable sales and file GST returns. Below the threshold, registration is optional.
What is provisional tax?
From your second year, if your residual income tax was over NZ$5,000, Inland Revenue asks you to pre-pay next year's tax in instalments. Setting aside 25–30% of each payment covers it comfortably.
Figures are 2025/26 headline guidance for the self-employed, verified against official sources — not tax advice. Check current rules or an accountant for your situation.