New Zealand income tax calculator
For New Zealand sole traders and the self-employed. Enter your profit for the year and see your income tax, ACC earner’s levy and take-home, using the current IRD rates.
Running a business? Wrightly tracks your live tax position from your real income and expenses, all year.
- Income tax
- $13,220.50
- ACC earner's levy
- $1,225.00
- Take-home after tax & ACC
- $55,554.50
Effective rate 20.6% · income tax plus ACC earner's levy. Excludes the industry ACC work levy, IETC, student loan and KiwiSaver.
New Zealand income tax rates from 1 April 2025
Individual income tax is progressive. Each band of income is taxed at its own rate, so moving into a higher band only lifts the rate on the income above the threshold.
| Taxable income | Tax rate |
|---|---|
| Up to $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| Over $180,000 | 39% |
The self-employed also pay an ACC earner’s levy of 1.8% on liable earnings up to $156,641 (2026/27), billed separately by ACC.
Paying the tax: your IR3 and provisional tax
Filing your IR3
No tax is taken out during the year, so you settle it yourself through an IR3 return for the year to 31 March. For most sole traders that return is due by 7 July. A tax agent or an extension of time pushes the date out to the following 31 March.
When provisional tax starts
Once your tax bill for a year passes $5,000, Inland Revenue asks you to pay next year in instalments rather than one lump. The standard method sets each instalment from last year’s tax plus a small uplift, usually spread across three dates. So a good year lifts next year’s instalments, and it pays to set money aside as you go.
What lowers the profit you are taxed on
You are taxed on profit, not turnover, so every allowable cost you record brings the bill down. Tools, vehicle running costs, home-office use, insurance, software and accounting fees all come off before income tax and ACC apply.
Income tax questions
- What are the income tax rates in New Zealand?
- From 1 April 2025, individual income is taxed at 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, 39% above that. The rates are progressive, so each slice of income is taxed at its own rate.
- How is tax calculated when you are self-employed?
- You pay income tax on your net profit, meaning business income minus allowable expenses, at the same individual rates as everyone else. No PAYE is withheld during the year, so you settle it through your IR3 return, and pay provisional tax in instalments once your tax bill passes $5,000.
- What is the ACC earner’s levy?
- On top of income tax, the self-employed pay an ACC earner’s levy of 1.8% on liable earnings up to $156,641 (2026/27). ACC bills it separately from your IRD tax, along with an industry-specific work levy this calculator does not include.
- Do I pay tax on all my income or just the profit?
- Just the profit. Deduct your allowable business expenses from your income first; income tax and ACC apply to what is left.
- When is my IR3 tax return due?
- For most sole traders the IR3 for the year to 31 March is due by 7 July. If you file through a tax agent, or hold an extension of time, that moves out to 31 March the following year.
- What is provisional tax?
- Once your tax bill for a year passes $5,000, Inland Revenue asks you to pay the next year in instalments rather than one lump at the end. The standard method sets each instalment from last year’s tax plus a small uplift, usually spread across three dates.
- What expenses can I claim to lower my tax?
- You deduct the costs of running the business, such as tools, vehicle running costs, home-office use, insurance and accounting fees. Income tax and ACC apply only to the profit left after those come off.
Wrightly is record-keeping software, not tax advice. Figures are indicative, so check ird.govt.nz or your accountant for your own situation.
Keep going
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- See Wrightly track your live tax position from real income and expenses.