A New Zealand-specific calculator with the official 2026/27 brackets, ACC Earner's Levy, and GST threshold. See your true net profit after tax — and exactly how much to set aside per invoice.
🇳🇿 Tax year 2026/27 (1 Apr 2026 – 31 Mar 2027)
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In New Zealand, sole traders are taxed on their net profit (gross income minus allowable expenses) for the tax year running 1 April to 31 March. The 2026/27 brackets are 10.5% to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, and 39% above. There is no tax-free threshold — income is taxed from the first dollar, though the lowest bracket is a relatively low 10.5%. On top of income tax, the ACC Earner's Levy of 1.75% of liable earnings applies, capped at $156,641 (a maximum of $2,741.22), covering non-work injuries.
The ACC Earner's Levy is not the full ACC picture. The ACC Work Levy — which covers work-related injuries and varies by your industry classification unit, averaging roughly $0.69 per $100 of liable earnings — is billed separately by ACC and is not included in this calculator. Treat the earner's levy figure shown here as a minimum; your actual ACC bill will be higher once the work levy is added. KiwiSaver is optional for the self-employed, with no compulsory employer-equivalent contribution, though voluntary contributions may attract the annual government contribution (25 cents for every dollar you contribute, up to $260.72 a year, if your income is $180,000 or less).
Provisional tax is required once your Residual Income Tax (RIT — tax owed after PAYE and other credits) exceeds $5,000. Under the standard uplift method, you pay three instalments on 28 August, 15 January, and 7 May (for a standard 31 March balance date), each set at 105% of the prior year's RIT. Terminal tax for the year is due the following 7 February. GST registration is compulsory once turnover exceeds $60,000. The payment calendar on this page lists the provisional dates.
Allowable deductions include equipment, software, a home-office portion, professional fees, insurance, and travel/vehicle costs (either actual or the Inland Revenue kilometre rate). Personal expenses are not deductible, and some capital assets are depreciated. Keep records for seven years. Inland Revenue publishes full guidance on what sole traders can claim.
New Zealand sole traders pay income tax on net profit (gross minus allowable expenses) using the 2026/27 brackets: 10.5% to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, and 39% above. On top, the ACC Earner's Levy is 1.75% of liable earnings, capped at $156,641 (maximum $2,741.22). There is no separate social-security tax. This calculator applies both.
The ACC Earner's Levy (1.75%, capped at $156,641) covers non-work injuries and is collected through your tax return. It is separate from the ACC Work Levy, which covers work-related injuries and varies by your industry classification unit (averaging roughly $0.69 per $100 of liable earnings). The Work Levy is billed separately by ACC and is not included in this calculator — treat the earner's levy figure as a minimum.
You must register for GST if your turnover exceeds $60,000 in any 12-month period. Registration is voluntary below that. Once registered, you charge 15% GST on sales, claim GST back on business expenses, and file GST returns. GST collected is not your income — it is held for Inland Revenue. This calculator flags the $60,000 threshold.
Provisional tax is required once your Residual Income Tax (RIT — the tax you owe after PAYE and other credits) exceeds $5,000. Under the standard uplift method, you pay three instalments (28 August, 15 January, 7 May for a March balance date), each based on 105% of the prior year's RIT. Any remaining terminal tax is due the following 7 February. The payment calendar on this page lists the dates.
KiwiSaver is optional for the self-employed — there is no compulsory employer-equivalent contribution like PAYE employees get. You can make voluntary contributions, and if you do, you may qualify for the annual government contribution (25 cents for every dollar you contribute, up to $260.72 a year, if your income is $180,000 or less). Tick the KiwiSaver box in this calculator to model a 3% voluntary contribution.
You can deduct expenses incurred in earning your business income: equipment, software, a home-office portion, professional fees, insurance, and travel/vehicle costs (actual or the kilometre rate). Personal expenses are not deductible. Some capital assets are depreciated. Keep records for seven years. Inland Revenue publishes full guidance on allowable deductions.
Your estimate subtracts your business expenses from your gross income to get net profit, then applies New Zealand's official 2026/27 income tax brackets and ACC Earner's Levy, using the GST threshold flag for your gross income. The result shows your take-home pay and how much to set aside per invoice.